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Kiaasa Retail

Kiaasa Retail is coming out with an initial public offering (IPO) of 54,90,000 shares in a price band of Rs 121-127 per equity share.

The issue will open on February 23, 2026 and will close on February 25, 2026.

The shares will be listed on SME Platform of BSE.

The face value of the share is Rs 10 and is priced 12.10 times of its face value on the lower side and 12.70 times on the higher side.

Book running lead manager to the issue is Expert Global Consultants.

Compliance Officer for the issue is Kanishka Singhal.

Profile of the company

Kiaasa Retail is an ethnic wear brand that offers a wide range of apparel, footwear, and accessories designed exclusively for women. The product portfolio includes salwar kameez, lehengas, jewellery, bags, and scarves. The brand caters to the evolving fashion needs of Indian women by providing high-quality and affordable products that reflect their individuality. It operates through a network of exclusive brand outlets and online presence, ensuring accessibility across multiple platforms.

It began its journey in April 2018, with a vision to establish a brand that offers stylish and comfortable ethnic wear for women. The first store was launched in Kamla Nagar, Delhi, in June 2018, marking the beginning of its retail presence. In March 2021, the current promoters, namely Om Prakash and Amit Chauhan, took over the business from existing partners/ shareholders, contributing to rapid growth and operational improvements. By September 2021, the company achieved a significant milestone by opening its 50th store in Vadodara. To strengthen its presence in South India, it acquired 'U-Women' brand in December 2021. Further expansion followed with the acquisition of the brand 'LAABHA' in February 2022, enhancing the brand's presence within Delhi/NCR.

It operates its EBOs through three models: FOFO (Franchise Owned Franchise Operated), COCO (Company Owned Company Operated), and FICO (Franchise Invested Company Operated), allowing it to manage its retail network efficiently. It uses a combination of marketing strategies, partnerships with influencers and location-specific campaigns to increase its market reach.

Proceed is being used for:

Expenditure for opening new stores 

General corporate purposes

Industry overview

The textile and apparel market in India is one of the oldest industries in the country, with a rich heritage that spans centuries. Overall, the industry contributes around 2% to the country's GDP and accounts for 7% of industrial output in value terms. With a 4% share of the global textile and apparel trade, the sector is vital for India's export economy, making up 10.33% of the country's overall export basket during 2021-22. This sector is broadly divided into several segments including fibre and yarn, processed fabrics, garments, and technical textiles. The garment sector is divided into ready-made garments and customized tailoring.

India ranks as the sixth-largest exporter of textiles and apparel globally, bolstered by its extensive raw material and manufacturing base. In 2022-23, textiles and apparel accounted for 8.0% of India's total exports, with the country holding a 5% share of the global trade in these products. Despite significant logistics challenges, India achieved record-high exports of textiles and apparel, including handicrafts, totaling $35.58 billion in FY23. Focusing on the ready-made garment (RMG) sector, exports reached $16.19 billion in FY23, reflecting a modest growth of 1.1% over 2021-22. In February 2024, RMG exports increased to $1.48 billion, up from $1.41 billion in February 2023.

The Indian textile and apparel industry is poised for substantial growth, with market size expected to increase from $125 billion in FY 2023 to $250 billion by FY 2031, reflecting a compound annual growth rate (CAGR) of 9%. This growth is driven by rising domestic demand, supported by increasing disposable incomes, evolving fashion trends, and government initiatives like the Production Linked Incentive (PLI) scheme and PM Mitra, which aim to attract investments and modernize the industry.

Pros and strengths

Strong leadership and fast growth: Its rapid expansion has been possible because of an experienced promoter who understands the industry well. Even during tough times like COVID-19, it continued to grow aggressively. Strong decision-making, efficient financial management, and a clear vision have helped it scales operations, expand into new markets, and strengthen its position in the ethnic fashion industry.

Designs that connect with local culture: It creates fashion that reflects the regional styles and cultural preferences of different parts of India. By working with specialized designers and local fashion experts, it ensures that its collections match the tastes of customers in various regions. This approach has helped it builds a strong connection with its customers and drive more sales.

Strict quality checks for every product: It follows a two-step quality check to ensure that every product meets high standards before reaching customers. First, its in-house team at manufacturing units checks the products during production. Then, when the products arrive at its warehouse, they go through another round of quality checks. This system ensures that customers get durable, high-quality clothing, increasing trust in its brand.

Risks and concerns

Dependence on key geographic regions for revenue: Its top three regions, Uttar Pradesh, Delhi and Punjab, contributed 55.86%, 61.81%, 65.60% and 71.88% of its total B2C revenue for the period as at February 28, 2025 and the fiscal years ended March 31, 2024, 2023 and 2022, respectively. While it has gradually expanded its geographical footprint across various Indian states, a significant portion of its revenue from retail outlet operations continues to be derived from the state of Uttar Pradesh. For the eleven-month period ended February 28, 2025, its revenue from Uttar Pradesh amounted to Rs 2,326.39 lakh, constituting 28.81% of its total revenue for the same period. This substantial dependence on a single state exposes it to region-specific risks that may adversely impact its overall performance. Any adverse impact in this region may adversely affect its business, results of operations and financial condition.

Reliance on third-party suppliers and vendor concentration: Its reliance on third-party suppliers and vendors for procurement of finished products exposes it to supply chain risks, and heavy dependence on a limited number of vendors may adversely affect its business, cash flows, and financial condition. Its top ten suppliers accounted for 74.92%, 79.90%, 87.91% and 88.83% of its total purchases for the period as at February 28, 2025 and the fiscal years ended March 31, 2024, 2023 and 2022, respectively.  As it expands its operations and retail footprint, its ability to diversify its supplier base while maintaining consistent quality and price points will be critical. Any disruption or adverse development with one or more of these key vendors could result in inventory shortages, missed sales opportunities, or the need to source from alternative suppliers at higher costs.

Credit risk from B2B customers: Its operations involve extending credit for extended periods of time to its B2B customers, majorly franchisees and distributors, in respect of its products, and consequently, it faces the risk of non-receipt of these outstanding amounts in a timely manner or at all, particularly in the absence of long-term arrangements with customers and distributors. Its credit terms vary from 45 days to 90 days for its customers and distributors. While its customers typically provide it with their commitments, it cannot guarantee that its customers will not default on their payments. Its inability to collect receivables from its customers and distributors in a timely manner or at all in future, could adversely affect its working capital cycle and cash flows. 

Outlook

Kiaasa Retail is engaged in the business of manufacture, resell, trade, export, import, sell in wholesale and retail of fashion accessories, garments, footwear, leather goods, wearing apparel and dress materials, also as traders, fabricators, manufacturers, exporters and importers of all kinds of clothing, readymade garments, jewelry, footwear, hand bags, beauty products and all accessories related to fashion & lifestyle products. On the concern side, it operates in a highly competitive environment, where companies compete on various factors such as product quality, technical competence, pricing, innovation, service offerings, brand recognition, and customer relationships. Its competitors-both domestic and international-may have significant advantages, including greater financial resources, longer operating histories, superior brand recognition, advanced manufacturing techniques, broader service portfolios, and more established distribution networks.

The company is coming out with a maiden IPO of 54,90,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 121-127 per equity share. The aggregate size of the offer is around Rs 66.43 crore to Rs 69.72 crore based on lower and upper price band respectively. On performance front, the total income increased from Rs 5,003.84 lakh in year ended March 31, 2023 to Rs 8,503.76 lakh in year ended March 31, 2024 with a resultant increase of 69.94% in year ended March 31, 2024. Net Profit after tax increased from Rs 246.18 lakh in year ended March 31, 2023 to Rs 574.19 lakh in year ended March 31, 2024 with a resultant increase of 133.24% in year ended March 31, 2024. 

Meanwhile, it has achieved strong growth by rapidly expanding its store network across tier-2 and tier-3 cities. Instead of focusing on high initial margins, it prioritized affordable pricing to attract customers and build long-term brand loyalty. This approach has helped it scales quickly, increase footfall, and establish a strong presence in key markets. By maintaining an efficient supply chain and strict cost control, it has been able to offer high-quality ethnic wear at competitive prices while sustaining profitability. The success of this strategy is reflected in its ability to consistently expand and strengthen its retail presence.