Kolkata-based Shree Balaji (Mala) Textiles will launch its Rs 18.9 crore IPO on July 22. The company manufactures cotton sarees and plans to use most of the funds to support its daily business operations.
Shree Balaji (Mala) Textiles, a contract manufacturer and wholesaler of cotton sarees, has announced its initial public offering (IPO) scheduled to open for subscription on July 22, 2026. The company intends to raise Rs 18.9 crore by issuing 27 lakh fresh shares. The price band for the offer is set between Rs 66 and Rs 70 per share, which values the business at approximately Rs 69 crore at the upper end of the price range.
The public issue will remain open until July 24, 2026. Prior to the main launch, the anchor investor portion will open for a single day on July 21, 2026. The company’s shares are expected to be listed on the BSE SME platform.
Usage of IPO Proceeds
The company has stated that the primary objective of this fundraising is to strengthen its balance sheet and support ongoing operations. Specifically, Rs 16.5 crore is earmarked to meet working capital requirements, which covers the money needed for day-to-day business activities like inventory and payments to suppliers. Any remaining funds will be directed toward general corporate purposes.
Business Context and Operations
Operating primarily as a B2B player, the company manufactures cotton sarees at its facility in Jetpur, Gujarat. It markets its products under the 'Mala Saree' brand. The company operates through an extensive distribution chain that includes over 105 brokers, 13 dealers, 69 wholesalers, and nearly 3,000 retailers across the country. Sales of cotton sarees account for roughly 90 percent of its total revenue, making it heavily dependent on this specific product category.
Financial Performance
For the financial year ended March 2026, the company reported a profit of Rs 5.85 crore, compared to Rs 4.9 crore in the previous year, marking an increase of about 18.4 percent. Revenue for the same period stood at Rs 212 crore, up from Rs 193 crore in the prior fiscal year, representing a growth rate of 9.8 percent. Investors reviewing these figures may want to consider how the company plans to maintain this growth trajectory in the competitive textile manufacturing space.
Since this is an SME IPO, investors should note that these offerings often come with higher liquidity risks compared to larger companies listed on the main board. Because the majority of the proceeds are going toward working capital, the company's ability to manage its inventory efficiently and collect payments from its vast network of retailers and wholesalers will be an important factor to monitor after the listing.