Dudani Retail Ltd. IPO

Dudani Retail

• Dudani Retail is coming out with an initial public offering (IPO) of 36,36,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 29 per equity share.
• The issue will open on September 25, 2026 and will close on September 29, 2026.
• The shares will be listed on SME Platform of BSE.
• The share is priced at 2.90 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Finshore Management Services.
• Compliance Officer for the issue is Ramgopal Sharma.

Profile of the company

Dudani Retail is engaged in the business of designing, manufacturing, sourcing and supplying apparel and related products through own-brand operations, licensed manufacturing arrangements with Fashion & Lifestyle marketplaces and a structured supply arrangement with a quick commerce platform. Its activities span manufacturing of women’s ethnic and fusion wear, trading of men’s wear and fulfilment of just-in-time basis orders for licensed labels under agreements with Fashion & Lifestyle marketplaces. The company operates from its rented premises at Jaipur, Rajasthan, where key manufacturing processes such as cutting, stitching, finishing, quality checks and dispatch are undertaken. Value-added processes including fabric dyeing, printing, embroidery and related operations are carried out through third-party processors.

Its own-brand business consists primarily of women’s wear sold under the brand ‘Divena’ covering categories such as suit sets, kurtas, dresses, tops, tunics, kaftans, co-ord sets, sarees and bottom wear. These products are designed and manufactured by it using a combination of in-house production and outsourced value-addition. Its men’s wear portfolio, marketed under the name ‘Millennial Men’ operates entirely on a trading basis, wherein finished goods are procured from external suppliers and sold through online channels. It also engages in selective trading of personal care and lifestyle products under the name ‘Cosse’ depending on sourcing opportunities and demand patterns.

In addition to its own-brand activities, it manufactures products under licensed arrangements entered into with a Fashion & Lifestyle Marketplace/e-commerce. These arrangements permit it to use specified trademarks owned or managed by the respective entities for the limited purpose of manufacturing and supplying products in accordance with the design briefs, brand specifications, quality standards and operational requirements communicated by them. The labels covered under these arrangements include Kalini, Corsica, Roadster, Anouk Rustic, All about you, Taavi, Navyaazri, Chandbaali, Baesd, ETC, Navibhu, Here & Now.

Proceed is being used for:

• Meeting working capital requirements
• Capital expenditure
• Re-payment of outstanding borrowings
• General corporate purposes

Industry Overview

India’s textiles sector is one of the oldest and most diverse industries in the country, with roots stretching back centuries. It spans from traditional hand-spun and handwoven clusters to sophisticated capital-intensive mills, supported by a robust base of fibres and yarns ranging from cotton, jute, silk, and wool to polyester, viscose, and acrylic. The decentralised power loom, hosiery, and knitting segment remains the largest component, reflecting the industry’s ability to cater to multiple consumer markets. Its close linkage with agriculture, reliance on natural resources like cotton, and strong cultural heritage give the Indian textiles industry a unique identity compared to other manufacturing sectors.

The market for Indian textiles and apparel is projected to grow at a 10% CAGR to reach $2.3 billion by 2030. India ranks among the top five global exporters in several textile categories, with exports expected to reach $100 billion. The textiles and apparel industry now contributes around 2% of India’s GDP and about 11% of manufacturing GVA (Gross Value Added) as of August 2025. The textile industry in India is predicted to double its contribution to the GDP to around 5% by the end of this decade.

The future of India’s textiles industry looks promising, supported by rising domestic demand, growing exports, and policy interventions that are strengthening competitiveness. The sector, which already contributes around 2% to GDP and employs over 45 million people, is expected to see its share in the economy nearly double by the end of the decade. Technical textiles will play a pivotal role in this growth. The segment, valued at $29 billion in FY24, is projected to expand rapidly, reaching $45 billion by 2026 and continuing on a strong trajectory thereafter. Within this, mobiltech textiles for automotive use are expected to nearly double from $2.32 billion in FY25 to $4.57 billion by FY33, driven by the rise of electric vehicles and demand for advanced materials. Sustainability and innovation are emerging as defining themes for the industry. Companies are increasingly adopting ecofriendly processes and recyclable fibres to align with global trends, while government schemes like MITRA Parks and support for integrated textile hubs are encouraging value addition and modernisation.

Pros and strengths

Presence across multiple operating verticals: The company operates across own-brand manufacturing for women’s wear, trading of men’s wear and licensed manufacturing for Fashion & Lifestyle Marketplace companies, along with a sales-linked supply arrangement with a QuickCommerce Company. This multi-vertical structure provides access to diverse revenue streams driven by marketplace demand, just-in-time orders from Fashion & Lifestyle Platform entities and sales performance under institutional supply arrangements. The presence of multiple channels allows it to align production planning and sourcing activities with evolving order flows and market requirements.

Established working relationships with Fashion & Lifestyle Companies through licensed manufacturing arrangements: The company has entered into multiple licence and manufacturing agreements with Fashion & Lifestyle Platform Companies for the manufacture and supply of products under their specified managed labels. These arrangements define brand specifications, quality requirements, sampling processes and operational standards. Its ability to adhere to these requirements has supported continuity of these arrangements. These relationships provide a recurring source of manufacturing assignments, subject to just-in-time orders issued by the licensors.

Multi-channel distribution for own-brand products: Its own-brand products are sold across major e-commerce marketplaces, including Myntra, Amazon, Flipkart, Ajio and Nykaa Fashion, as well as through its own websites. This enables it to access a broad customer base across multiple platforms and geographic regions. Multi-channel distribution also supports visibility for its women’s wear portfolio and allows it to balance demand across platforms based on category performance.

Risks and concerns

Reliance on limited number of key suppliers: The company does not have long term agreements for supply of its raw materials. The Company’s top 10 suppliers accounted for 87.25%, 90.87%, and 90.36% of total purchases for the financial years ended March 31, 2026, March 31, 2025, and March 31, 2024, respectively. If it is unable to procure raw materials of the required quality and quantity, at competitive prices, its business, results of operations and financial condition may be adversely affected. Majority of its raw materials are sourced from few key suppliers. Discontinuation of operations of such suppliers may adversely affect its ability to source raw materials at a competitive price.

Dependence on top 5 customers: A portion of the company’s revenues has been dependent upon a top 5 customers. The company’s top 5 customers contributed 63.56%, 65.58%, and 75.56% of total revenue for the financial years ended March 31, 2026, March 31, 2025, and March 31, 2024, respectively. The loss of any significant customer would have a material effect on its financial results. Its business from customers is dependent on its continuing relationship with such customers, the quality of its products and its ability to deliver on their orders, and there can be no assurance that such customers will continue to do business with it in the future on commercially acceptable terms or at all. However, in case of any change in the buying pattern of its end users or disassociation of major customers can adversely affect its business or if its customers do not continue to purchase products from the company, or reduce the volume of products purchased from it, its business prospects, results of operations and financial condition may be adversely affected.

High revenue concentration across certain states: Majority portion of its revenues are made in certain regions. Its top 10 states i.e. Rajasthan, Maharashtra, Karnataka, Uttar Pradesh, Delhi, Haryana, Telangana, West Bengal, Gujarat and Tamil Nadu cumulatively constitute 81.60%, 80.55% and 80.69% for the Fiscal 2026, 2025 and 2024 respectively. Such geographical concentration of its business in any of these regions heightens its exposure to adverse developments related to competition, as well as economic and demographic changes in these regions which may adversely affect its business prospects, financial conditions and results of operations.

Outlook

The company is a fashion and lifestyle company engaged in the design, manufacturing, and selling of a wide range of apparel and trading of a few cosmetic products. It specializes in providing a diverse range of apparel for both women and men. Its women's clothing is marketed and sold under the brand ‘Divena,’ which focuses on ethnic and fusion wear, offering products such as kurtas, kurta set, ethnic dresses, and coord sets. For men's fashion, it operates under the ‘Millennial Men’ brand, which caters to the demand for contemporary and versatile styles. On the concern side, it currently operates without any physical retail stores. As a result, its customer reach is dependent primarily on online platforms. Any reduction in online demand, change in platform visibility or increased competition may affect sales of its own-brand products. Lack of offline presence may also limit its ability to serve customers who prefer physical retail channels. The financial implications of absence of offline retail cannot be quantified due to variability in consumer behaviour.

The company is coming out with an IPO of 36,36,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 29 per equity share to mobilize Rs 10.54 crore. On performance front, total income decreased from Rs 2,528.75 lakh in Fiscal 2025 to Rs 2,458.76 lakh in Fiscal 2026, representing a decrease of 2.77%. Profit after tax increased from Rs 177.92 lakh in Fiscal 2025 to Rs 190.13 lakh in Fiscal 2026, representing an increase of 6.86%.

Meanwhile, the company intends to strengthen its operations across own-brand manufacturing, trading activities and licensed manufacturing for Fashion & Lifestyle Marketplace Companies while maintaining a measured approach to capacity utilisation, procurement planning and fulfilment. Its strategy is designed to align its manufacturing and sourcing activities with the order flow from online marketplaces, the requirements of its licensors and the sales performance under its institutional supply arrangement. The company aims to pursue growth in a manner consistent with its operational capabilities, available resources, demand conditions and contractual frameworks. It also intends to continue executing its licensed manufacturing arrangements with Fashion & Lifestyle Marketplace Companies.

In compliance with Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018, Atharv Enterprises has informed that it enclosed copy of Certificate received from Adroit Corporate Services, the Registrar and Share Transfer Agent of the Company for the period from 01st July, 2026 to 30th September, 2026.

The above information is a part of company’s filings submitted to BSE.