Game Changers Texfab Limited Makes Strong Debut with 5.88% Premium, Lists at ₹108.00 Against Weak Subscription

Game Changers Texfab Limited, a B2B marketplace for fabrics powered by supply chain orchestration company specializing in sourcing high-quality fabrics with over 10,000 designs across cotton, silk, satin, and technical textiles through 10 sourcing offices and two retail stores serving garment manufacturers, designers, export houses, and individual customers under "TradeUNO" and "Fall in Love" brands via e-commerce platform tradeuno.com, made a strong debut on BSE SME on November 4, 2025. 

Game Changers Texfab Limited Listing Details

Game Changers Texfab launched its IPO at ₹102 per share with minimum investment of 2,400 shares costing ₹2,44,800. The IPO received weak response with subscription of only 1.17 times - retail at modest 1.18 times, QIB at marginal 1.01 times, and NII at moderate 1.48 times (bNII at 1.46 times and sNII at 1.52 times), indicating subdued institutional and retail confidence in the fabric sourcing business despite the company's asset-light B2B marketplace model.

First-Day Trading Performance

Listing Price: Game Changers Texfab opened at ₹104.15 representing premium of 2.09% from issue price of ₹102.00, touched high of ₹108.15 (up 6.03%) and low of ₹104.15 (up 2.09%), with VWAP at ₹104.71, delivering strong gains of 5.88% reflecting positive sentiment towards textile marketplace.

Growth Drivers and Challenges

Growth Drivers:

Asset-Light B2B Marketplace Model: Specializes in sourcing fabrics without manufacturing, operating 10 sourcing offices consolidating small quantity orders meeting MOQ requirements, serving garment manufacturers, designers, and export houses with over 10,000 designs across categories.
Multi-Channel Revenue Streams: Diversified business across B2B fabric sourcing, B2C retail under "TradeUNO" brand with weekly new collections, made-to-measure garments under "Fall in Love" brand with customization services, and online sales through tradeuno.com platform.
Impressive Financial Growth: Revenue increased 18% and PAT surged exceptional 183% between FY24 and FY25, exceptional ROE of 80.59%, ROCE of 65.97%, PAT margin of 10.44%, EBITDA margin of 16.09%.

Challenges:

Elevated Debt and Working Capital: Higher borrowings of ₹9.88 crore as of June 2025, debt-to-equity of 0.27, significant working capital requirement of ₹25.50 crore from IPO proceeds indicating cash flow pressures.
Aggressive Valuation and Competition: Post-issue P/E of 10.70x and price-to-book of 6.08x appearing fully priced based on inflated FY24-25 earnings, operating in highly competitive and fragmented fabric sourcing segment, promoter dilution from 98.67% to 69.01%.

Utilisation of IPO Proceeds

Capital Expenditure: ₹15.00 crore funding capital expenditure for business expansion and infrastructure development.
Working Capital: ₹25.50 crore funding overall working capital requirements supporting inventory management and operational cash flows in fabric sourcing business.
Corporate Purposes: ₹8.85 crore for general corporate purposes including unidentified inorganic acquisitions providing strategic flexibility.

Financial Performance

Revenue: ₹115.59 crore for FY25, growth of 18% from ₹97.86 crore in FY24, reflecting expanding fabric marketplace operations.
Net Profit: ₹12.07 crore in FY25, exceptional growth of 183% from ₹4.27 crore in FY24, demonstrating strong operational leverage.
Financial Metrics: Exceptional ROE of 80.59%, solid ROCE of 65.97%, moderate debt-to-equity of 0.27, PAT margin of 10.44%, EBITDA margin of 16.09%, price-to-book of 6.08x, post-issue EPS of ₹9.54, P/E of 10.70x, and market capitalisation of ₹193.24 crore (higher than pre-IPO estimate of ₹182.51 crore due to 5.88% premium listing).