About Game Changers Texfab
Incorporated as a private limited company on April 6, 2015, Game Changers Texfab sources fabrics to customer specifications from suppliers. Its deemed manufacturing model keeps the business asset light. The company sells through B2B and B2C channels, both offline and online, and has two brands, “TradeUNO” and “Fall in Love”. It also imports technical textiles and has exclusive distributorship agreements with two Chinese companies for PVC fabric and Outdoor Fabric.
Game Changers Texfab IPO Details
| Particulars | Details |
|---|---|
| Price Band (INR) | 96 to 102 |
| Face Value (INR) | 10 |
| Implied M.Cap (INR Cr.) | 182.51 |
| Exchange | BSE SME |
| Min. Lot Size (Retail | HNI) | 2,400 | 3,600 |
| Issue Opens on | 28-Oct’25 |
| Issue Closes on | 30-Oct’25 |
| Listing Date | 4-Nov’25 |
| No. of shares pre-issue (#) | 1,25,16,814 |
| Fresh Issue of Shares (#) | 53,76,000 |
| Offer for Sale (#) | - |
| No. of shares post-issue (#) | 1,78,92,814 |
| Funds Mobilized: Fresh Issue of Shares (INR Cr.) | 54.84 |
| Funds Mobilized: Offer for Sale (INR Cr.) | 0.0 |
| QIB shares offered | <=50% |
| Retail shares offered | >=35% |
| NII (HNI) shares offered | >=15% |
| Registrar | Skyline Financial |
| Book Running Lead Managers | Corpwis Advisors |
Objects of Issue (INR Cr.)
- Working capital requirements: 25.50
- Funding capital expenditure towards construction of new stores: 15
- Funding working capital: [●]
Strengths
- Store expansion: The company plans to open six stores in Tier 1 and Tier 2 cities using IPO proceeds and four additional stores from internal accruals. The expansion is planned to be completed gradually by the end of FY27.
- Focus on higher-margin products: The company is increasing its focus on technical textiles, where gross margins can be 18% to 20%. Management claims technical textile sales can grow 5 times in FY26 compared with FY25 (2.92 Cr.).
- Management growth expectations: Management expects revenue to grow by 38% CAGR and profit by 61% CAGR over the next 3 years. These are management expectations.
- Margin improvement: FY25 gross margin was 19.6%, compared with 12.8% in FY24; EBITDA margin was 16.1%, versus 6.9% in FY24. The company also says advance payments to suppliers can earn cash discounts of 3% to 7%.
Game Changers Texfab Key Financials
| Particulars (INR Cr.) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (excl. other inc.) | 100 | 98 | 116 |
| Growth Rate Y-o-Y % | - | (2.6)% | 18.1% |
| EBITDA (excl. other inc.) | 1.3 | 6.7 | 18.6 |
| EBITDA % (excl. other inc.) | 1.3% | 6.9% | 16.1% |
| PAT | 0.61 | 5.72 | 16.16 |
| PAT % | 0.5% | 4.4% | 10.4% |
| Debt (Short+Long) | 7.4 | 10 | 9.7 |
| Debt/Equity | 1.58x | 1.12x | 0.46x |
| ROE % | 11.3% | 47.7% | 57.5% |
| ROCE % | 9.5% | 33.9% | 57.2% |
The report also presents gross margin, equity, NWC, NWC days and CFO / EBITDA %.
Revenue and profitability increased in FY25, while reported NWC days rose to 86 from 34 in FY24.
Business and Revenue Mix
FY25 revenue was predominantly B2B (86.75%) and offline (99.20%). B2C contributed 13.25%, while technical textiles accounted for 2.58% of revenue. The company had two stores; Udyog Vihar was its flagship store.
| Revenue | FY23 | FY24 | FY25 |
|---|---|---|---|
| From B2B | 97.33% | 95.01% | 86.75% |
| From B2C | 2.67% | 4.99% | 13.25% |
| From Offline Sales | 99.55% | 98.53% | 99.20% |
| From Online Sales | 0.45% | 1.47% | 0.8% |
| From Non Technical Textiles | 88.10% | 98.82% | 97.42% |
| From Technical Textiles | 11.90% | 1.18% | 2.58% |
| Other than Deemed Manufacturing | 98.02% | 85.79% | 88.86% |
| From Deemed Manufacturing | 1.98% | 14.21% | 11.14% |
Industry and Peers
The report cites an expected expansion in the domestic textile and apparel industry from 160 Billion in 2023 to 350 Billion by 2030, with a CAGR of 10%. It also states that the Indian Textile Market is expected to grow at a CAGR of 11.5%-12.5% till 2028. The RHP-listed peers are T T Ltd. and Bhandari Hosiery Exports Ltd.
The report notes that the company expects technical textiles to contribute 22% of total revenue by FY28. It also states that the current average B2B order size is around Rs. 3 lakhs.
Management
- Ankur Aggarwal: Promoter, Executive Director and Chief Financial Officer, age 38 years, with an overall 19 years of experience in textiles.
- Sanjeev Goel: Managing Director, age 55 years, with 17 years of experience in Information & Technology and 8 years of business experience with GCTFL.
Shareholding
| Particulars | Pre-Issue | Post-Issue |
|---|---|---|
| Promoter & Promoter Group | 98.67% | 69.02% |
| Public | 1.33% | 31.98% |
| Total | 100.00% | 100.00% |
IPO Valuation and Our View
The issue is valued at a P/E ratio of 11.29x based on FY25 PAT. The report describes this as fairly valued, citing the asset-light model and higher margins compared with the peer. Minerva Capital Research Solutions recommends May Subscribe for investors with higher risk appetite, for listing gains.
- INR 96 to 102 per share
- IPO price band
- ~INR 182.51 Cr.
- Implied market capitalisation
- May Subscribe
- Recommendation
Key Risks
- Industry competition: The textile industry is described as highly capital intensive, competitive and fragmented.
- Customer concentration: The top customer contributed 14.74% of FY25 revenue; the top 10 contributed 71.29%.
- Related-party business overlap: Shree Balaji Tirpal Pvt Ltd. and M/s Capitol Enterprises, related promoter group companies, are in a similar business, which may lead to a conflict of interest.
- Technical textile supplier dependence: The report identifies complete dependence on Chinese suppliers to grow the technical textile segment.
- Deemed manufacturing model: Reliance on deemed manufacturing units was low at 11.14% in FY25.
Our View
The report’s rationale for the IPO centres on improved FY25 margins, planned store expansion and a proposed push into technical textiles. It recommends May Subscribe for investors with higher risk appetite, while highlighting customer concentration, Chinese supplier dependence and the competitive nature of the industry.