IPO Details
Qualiance International Limited IPO Analysis
This article is based entirely on publicly available information disclosed in the Red Herring Prospectus (RHP) of Qualiance International Limited, dated August 31, 2026, and is intended for general market and financial education purposes only.
1. IPO Snapshot
| Particular | Details |
|---|---|
| Company Name | Qualiance International Limited |
| IPO Type | 100% Book Built Issue; Fresh Issue only |
| Fresh Issue | 35,52,000 Equity Shares |
| Total Issue Size | 35,52,000 Equity Shares; up to ₹4,511.04 lakh at Cap Price |
| Face Value | ₹10 per Equity Share |
| Price Band | ₹120–₹127 per Equity Share |
| Lot Size | 1,000 shares |
| Minimum Application | 2,000 shares |
| Opening Date | September 4, 2026 |
| Closing Date | September 8, 2026 |
| Basis of Allotment | September 9, 2026 (on/about) |
| Listing Date | September 11, 2026 (on/about) |
| Listing Exchange | NSE SME / NSE Emerge |
| Registrar | MUFG Intime India Private Limited |
| Lead Manager | Hem Securities Limited |
2. IPO Details
| Particulars | At Floor Price ₹120 | At Cap Price ₹127 |
|---|---|---|
| Fresh Issue Shares | 35,52,000 | 35,52,000 |
| Fresh Issue Amount | ₹426.24 million | ₹451.10 million |
| Total Offer Shares | 35,52,000 | 35,52,000 |
| Total Offer Size | ₹426.24 million | ₹451.10 million |
| Pre-Issue Shares | 99,00,000 | 99,00,000 |
| Post-Issue Shares | 1,34,52,000 | 1,34,52,000 |
| Post-Issue Market Capitalisation | ₹1614.2 mn | ₹1708.4 mn |
| Market Maker Reservation | 1,80,000 shares | 1,80,000 shares |
| Net Issue to Public | 33,72,000 shares | 33,72,000 shares |
3. Issue Reservation
| Category | Shares | % / Basis |
|---|---|---|
| Market Maker | Up to 1,80,000 | 5.07% of Issue Size |
| QIB | Not more than 16,83,000 | Not more than 50% of Net Issue |
| Non-Institutional Investors | Not less than 5,07,000 | Not less than 15% of Net Issue |
| Individual Investors | Not less than 11,82,000 | Not less than 35% of Net Issue |
| Anchor Investors | Up to 60% of QIB Portion may be allocated | Discretionary; exact anchor allocation not disclosed |
4. IPO Lot Size
| Particular | Lots | Shares | Amount at Floor Price ₹120 | Amount at Cap Price ₹127 |
|---|---|---|---|---|
| Individual Investors (IND) – Min | 2 | 2,000 | ₹2,40,000 | ₹2,54,000 |
| Individual Investors (IND) – Max | 2 | 2,000 | ₹2,40,000 | ₹2,54,000 |
| S-HNI – Min | 3 | 3,000 | ₹3,60,000 | ₹3,81,000 |
| S-HNI – Max | 7 | 7,000 | ₹8,40,000 | ₹8,89,000 |
| B-HNI – Min | 8 | 8,000 | ₹9,60,000 | ₹10,16,000 |
5. About the Company
Qualiance International Limited designs, engineers, manufactures and exports performance garments for institutional, government and brand clients in international markets. Its stated product portfolio includes military uniforms, tactical outerwear, high-visibility workwear, weather-resistant and all-weather outerwear, police and border patrol uniforms, protective workwear and performance activewear. The company began as a partnership firm in 1994 and was incorporated as a company in 2006.
The existing manufacturing facility is in Tiruppur, Tamil Nadu, with more than 45,000 sq. ft. of built-up area and installed capacity of 4,50,000 pieces per annum. Specialized processes include seam sealing, bonded construction, ultrasonic welding, laser cutting and lamination. The company says designs and final specifications are provided or approved by customers, while it may provide technical inputs during development.
The company reports certifications including ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 14064-1:2018, SA 8000, SEDEX/SMETA, GOTS and GRS. It also states that it holds Two Star Export House status.
The company served approximately 15 customers in FY2026, seven associated for the last three fiscal years. Its sales strategy emphasizes selected customers. Exports were 98.82% of FY2026 revenue from operations, with Switzerland the primary destination.
The company is establishing a new manufacturing facility at Pongupalayam Village, Avinashi, Tiruppur District, with approximately 1,43,370 sq. ft. of built-up area and estimated annual base capacity of 10,80,000 pieces. Estimated project cost is ₹3,914.19 lakh, comprising civil work of ₹2,608.72 lakh and plant and machinery of ₹1,305.47 lakh.
6. Restated Financial Information
| Particulars | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Revenue from operations | 7,689.11 | 5,307.24 | 3,722.94 |
| Other income | 406.28 | 198.40 | 90.81 |
| Total income | 8,095.39 | 5,505.64 | 3,813.75 |
| Cost of material consumed | 3,209.19 | 3,142.27 | 1,460.97 |
| Changes in inventories | 119.36 | (997.15) | 116.08 |
| Employee benefits | 1,729.18 | 1,380.02 | 1,040.56 |
| Finance cost | 374.86 | 282.20 | 156.42 |
| Depreciation & amortisation | 112.32 | 101.51 | 86.91 |
| Other expenses | 944.63 | 967.75 | 612.78 |
| Profit before tax | 1,605.86 | 629.06 | 340.02 |
| Current tax | 436.74 | 54.31 | — |
| Deferred tax | (17.79) | 84.90 | 56.10 |
| PAT | 1,186.90 | 489.85 | 283.93 |
| Basic EPS (₹) | 11.99 | 4.95 | 11.21 |
| Diluted EPS (₹) | 11.99 | 4.95 | 11.21 |
| Share capital | 990.00 | 990.00 | 990.00 |
| Reserves & surplus | 2,475.05 | 1,453.50 | 1,040.96 |
| Long-term borrowings | 490.57 | 1,029.18 | 462.82 |
| Short-term borrowings | 2,359.06 | 1,941.83 | 1,453.90 |
| Trade payables | 83.96 | 46.58 | 158.49 |
| Total assets | 6,898.91 | 5,753.00 | 4,314.27 |
| Total liabilities & equity | 6,898.91 | 5,753.00 | 4,314.27 |
| Net worth (KPI definition) | 2,473.65 | 1,382.25 | 892.40 |
| Inventory | 2,413.56 | 2,953.59 | 1,487.24 |
| Trade receivables | 1,599.21 | 206.78 | 363.44 |
| Cash & bank balances | 78.07 | 65.19 | 166.38 |
7. Key Performance Indicators
| KPI | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Revenue from operations | 7,689.11 | 5,307.24 | 3,722.94 |
| EBITDA | 1,671.67 | 797.05 | 486.15 |
| EBITDA Margin | 21.74% | 15.02% | 13.06% |
| PAT | 1,186.90 | 489.85 | 283.93 |
| PAT Margin | 15.44% | 9.23% | 7.63% |
| RoCE | 37.33% | 21.16% | 18.94% |
| RoE | 61.56% | 43.07% | 85.93% |
| Net Worth | 2,473.65 | 1,382.25 | 892.40 |
8. IPO Valuation
| Metric | Disclosure |
|---|---|
| Price Band | ₹120–₹127 |
| FY2026 Diluted EPS | ₹11.99 |
| P/E at Floor Price | 10.00x |
| P/E at Cap Price | 10.59x |
| Weighted Average EPS | ₹9.51 |
| Weighted Average RoNW | 41.11% |
| FY2026 RoNW | 47.98% |
| NAV per Share, March 31, 2026 | ₹24.99 |
| Industry P/E – High | 60.84x (Gokaldas Exports Limited) |
| Industry P/E – Low | 23.21x (S P Apparels Limited) |
| Industry P/E – Average | 42.02x |
| WACA – Secondary Transactions | ₹127 per share |
| Cap Price / WACA – Last 1 Year | 1.33x; WACA ₹95.26 |
| Cap Price / WACA – Last 3 Years | 5.09x; WACA ₹24.93 |
| Market Capitalisation | ₹1,614.20 million at ₹120; ₹1,708.40 million at ₹127 |
9. Peer Comparison
| Metric | Qualiance | Gokaldas Exports | S P Apparels |
|---|---|---|---|
| Revenue (₹ lakh) | 7,689.11 | 3,98,763.81 | 1,57,863.70 |
| EBITDA (₹ lakh) | 1,671.67 | 35,635.62 | 21,145.70 |
| EBITDA Margin | 21.74% | 8.94% | 13.39% |
| PAT (₹ lakh) | 1,186.90 | 10,013.18 | 10,094.50 |
| PAT Margin | 15.44% | 2.51% | 6.39% |
| Net Worth (₹ lakh) | 2,473.65 | 2,16,039.93 | 94,612.60 |
| RoE | 61.56% | 4.72% | 11.20% |
| RoCE | 37.33% | 8.71% | 13.28% |
10. Shareholding & Capital Structure
| Category / Shareholder | Pre-Issue Shares | Pre-Issue % | Post-Issue Shares at ₹120 | Post-Issue % at ₹120 | Post-Issue Shares at ₹127 | Post-Issue % at ₹127 |
|---|---|---|---|---|---|---|
| Promoters | ||||||
| Vipul Badani | 50,49,000 | 51.00% | 50,49,000 | 37.53% | 50,49,000 | 37.53% |
| Krupa Rajesh Badani | 23,59,241 | 23.83% | 23,59,241 | 17.54% | 23,59,241 | 17.54% |
| Bhoomin R Badani | 3,01,500 | 3.05% | 3,01,500 | 2.24% | 3,01,500 | 2.24% |
| Promoters Sub-total | 77,09,741 | 77.88% | 77,09,741 | 57.31% | 77,09,741 | 57.31% |
| Promoter Group | ||||||
| Pratiksha Vipul Badani | 1,30,500 | 1.32% | 1,30,500 | 0.97% | 1,30,500 | 0.97% |
| Rajesh Jagmohandas Badani | 61,759 | 0.62% | 61,759 | 0.46% | 61,759 | 0.46% |
| Dhriti Dholia | 4,45,500 | 4.50% | 4,45,500 | 3.31% | 4,45,500 | 3.31% |
| Sneha Badani | 2,15,500 | 2.18% | 2,15,500 | 1.60% | 2,15,500 | 1.60% |
| Promoter Group Sub-total | 8,53,259 | 8.62% | 8,53,259 | 6.34% | 8,53,259 | 6.34% |
| Public | ||||||
| RJ HUF (through its Karta Ramesh Thakurdas Jaisinghani) | 5,52,000 | 5.58% | 5,52,000 | 4.10% | 5,52,000 | 4.10% |
| Eterna Prima-Scheme II | 3,15,000 | 3.18% | 3,15,000 | 2.34% | 3,15,000 | 2.34% |
| Naresh Kumar Bhargava | 79,000 | 0.80% | 79,000 | 0.59% | 79,000 | 0.59% |
| Vinod Kumar Lodha | 79,000 | 0.80% | 79,000 | 0.59% | 79,000 | 0.59% |
| Kaushik Daga | 72,000 | 0.73% | 72,000 | 0.54% | 72,000 | 0.54% |
| Pocketful Research Capital Private Limited | 72,000 | 0.73% | 72,000 | 0.54% | 72,000 | 0.54% |
| Sanjay Popatlal Jain | 72,000 | 0.73% | 72,000 | 0.54% | 72,000 | 0.54% |
| SB Opportunities Fund II | 72,000 | 0.73% | 72,000 | 0.54% | 72,000 | 0.54% |
| Ram Gopal Agal | 12,000 | 0.12% | 12,000 | 0.09% | 12,000 | 0.09% |
| Ruchi Lahoti | 12,000 | 0.12% | 12,000 | 0.09% | 12,000 | 0.09% |
| Public Sub-total | 13,37,000 | 13.51% | 13,37,000 | 9.94% | 13,37,000 | 9.94% |
| Grand Total (A+B+C) | 99,00,000 | 100.00% | 99,00,000 | 73.60% | 99,00,000 | 73.60% |
11. Objects of the Issue
| Object | Amount | Timeline / Use |
|---|---|---|
| New Manufacturing Facility at Tiruppur | ₹3,800 lakh | Civil work, plant & machinery, and project implementation |
| General Corporate Purposes | [●] | Balance of Fresh Issue proceeds; capped at 15% of gross proceeds or ₹10 crore, whichever is lower |
12. Key Risk Factors
-
Business / Operational
- Revenue is heavily dependent on woven garments.
- Manufacturing depends on the existing facility.
- Production disruptions or lower capacity utilization could affect revenue.
-
Customer Concentration
- Top customer contributed 56.93% of FY2026 sales.
- Top 10 customers contributed 99.65%.
- No long-term purchase contracts; business is largely based on purchase orders.
- Loss or reduction of orders could impact revenue and profitability.
-
Supplier Concentration
- Top 10 suppliers accounted for 62.99% of purchases in FY2026.
- Raw materials are sourced both domestically and internationally.
- Supply delays, shortages or higher costs could affect production and margins.
-
Export / Geographic Concentration
- Exports contributed 98.82% of FY2026 revenue.
- Switzerland alone accounted for 80.67%.
- Tariffs, trade restrictions, regulations or weaker overseas demand could affect sales.
-
Competition
- Faces competition from both organized and unorganized players.
- Pricing pressure could reduce revenue and margins.
-
Expansion / Project Risk
- New facility requires civil work, machinery procurement and approvals.
- Plant and machinery orders had not been placed as of the RHP.
- Delays or cost overruns could affect project timelines and funding needs.
-
Financial / Cash Flow
- Certain historical periods recorded negative operating, investing and financing cash flows.
- Inventory and receivables form a significant portion of current assets.
- Working-capital pressure could affect liquidity.
-
Debt / Security
- Secured loans of ₹2,836.78 lakh were outstanding as of March 31, 2026.
- Lenders have charges over company assets.
- Covenant breaches or repayment issues could affect cash flows and assets.
-
Regulatory / Compliance
- Certain statutory filing delays have been disclosed.
- Operations and expansion require various licences, approvals and registrations.
- Non-compliance or approval delays could disrupt operations.
-
Technology / Internal Controls
- Changes in technology may require additional investment.
- Employee errors, fraud and internal-control weaknesses could result in losses or disruptions.
-
Workforce / Safety
- Manufacturing depends on labour availability.
- Labour shortages, stoppages, wage increases or safety incidents could increase costs or disrupt production.
-
Legal / Litigation
- The company and certain promoters/directors have disclosed tax proceedings.
- Adverse outcomes, penalties or related costs could affect the business.
-
SME Liquidity / Market Making
- SME-platform shares may have lower trading liquidity.
- Continued market-maker participation cannot be assured.
- Investors may face lower trading volumes or difficulty exiting their investment.
-
Promoter / Governance
- Promoters and promoter group will retain majority ownership after the IPO.
- Directors have no prior experience on the board of a listed company.
- Promoter influence and listed-company compliance requirements may affect governance.
-
IPO / Market Risk
- IPO price may differ from the post-listing market price.
- Listing could be delayed.
- Bids cannot be withdrawn or lowered after submission.
- Investors may face market-price volatility.
-
Brand / Insurance / Dividend
- Company logo and word trademark were not registered as of the RHP.
- Insurance may not cover every operating risk.
- Future dividend payments depend on the company's future financial position and decisions.
13. Litigation & Contingent Liabilities
| Party / Proceeding | Cases | Amount Involved | Status / Disclosure |
|---|---|---|---|
| Company – Direct Tax | 1 | ₹0.15 lakh | Outstanding income-tax demand reflected on the portal; company states payment was made but portal status remained outstanding. |
| Company – Indirect Tax | 5 | ₹116.57 lakh | GST matters pending adjudication; total company tax proceedings amount to ₹116.72 lakh. |
| Company – Total Tax Proceedings | 6 | ₹116.72 lakh | No other pending material litigation disclosed against or filed by the company. |
| Promoters / Directors – Direct Tax | 2 | ₹21.69 lakh | Tax proceedings disclosed against Vipul Badani; matters are at the stages described in the RHP. |
| Material Creditors | 5 | ₹47.77 lakh | Five creditors exceed the stated materiality threshold; total trade payables were ₹83.95 lakh as of March 31, 2026. |
14. Registrar
| Particular | Details |
|---|---|
| Name | MUFG Intime India Private Limited (formerly Link Intime India Private Limited) |
| Address | C-101, Embassy 247, L.B.S. Marg, Vikhroli (West), Mumbai – 400083, Maharashtra |
| Telephone | +91 810 811 4949 |
| qualiance.smeipo@in.mpms.mufg.com | |
| Website | www.in.mpms.mufg.com |
| Contact | Shanti Gopalkrishnan |
| SEBI Registration | INR000004058 |
15. Lead Manager(s)
| Particular | Details |
|---|---|
| Name | Hem Securities Limited |
| Address | 904, A Wing, Naman Midtown, Senapati Bapat Marg, Elphinstone Road, Lower Parel, Mumbai – 400013 |
| Telephone | +91-22-49060000 |
| ib@hemsecurities.com | |
| Investor Grievance | redressal@hemsecurities.com |
| Contact | Neelkanth Agarwal / Deeksha Kaku |
| SEBI Registration | INM000010981 |
| Underwriter | Hem Securities Limited; 100% of Issue |
17. Company Contact Details
| Particular | Details |
|---|---|
| Registered Office | 406-B Wing, Knox Plaza, Next to Tangent Showroom, Mindspace, Malad West, Mumbai, Maharashtra – 400064 |
| Corporate Offices | 405-B, 407-B and 206-B Wing, Knox Plaza, Mindspace, Malad West, Mumbai |
| Telephone | +91 22 42666003 |
| info@qualiance.com | |
| Website | qualiance.com |
| Company Secretary / Compliance Officer | Pradeep Devanand Prajapati |
| CFO | Saira Tabrez Khan |
| Investor Grievances | Company Secretary and/or Registrar and/or BRLM, as described in the RHP |