Kiaasa Retail Limited, an emerging Indian ethnic and fusion wear brand for women, is launching its SME IPO worth ₹69.72 crore. Established in 2018 and headquartered in Ghaziabad, the company has rapidly expanded its footprint with more than 100 stores across 80+ cities in India. Kiaasa specializes in culturally inspired yet affordable fashion, offering a wide range of products including kurta sets, suit sets, lehengas, dupattas, bottomwear, and accessories. The brand positions itself as a premium yet reasonably priced ethnic wear label catering to modern Indian women, selling through exclusive brand outlets as well as online platforms.

The Kiaasa Retail IPO will open on 23 February 2026 and close on 25 February 2026, with listing expected on 2 March 2026 on the BSE SME platform. The price band has been fixed at ₹121 to ₹127 per share, with a lot size of 1000 shares. The entire issue comprises a fresh issue of 54,90,000 shares aggregating to approximately ₹69.72 crore. The registrar to the issue is Purva Sharegistry (India) Pvt. Ltd., while the lead manager is Expert Global Consultants Pvt. Ltd.. Retail investors can apply for a minimum of two lots, amounting to an investment of ₹2,54,000 at the upper price band.

From a financial perspective, the company has shown consistent growth over the past three years. Total income increased from ₹50.18 crore in FY23 to ₹85.19 crore in FY24 and further to ₹107.67 crore in FY25. Profit after tax also improved from ₹2.46 crore in FY23 to ₹7.38 crore in FY25, indicating operational improvement and scale benefits. Net worth has strengthened significantly to ₹39.67 crore in FY25. However, total borrowings stand at ₹25.14 crore, resulting in a debt-to-equity ratio of 1.25, which indicates moderate leverage. The company reports a strong ROE of 73.29% and ROCE of 33.23%, while PAT margin stands at 6.75%, reflecting relatively tight profitability in a competitive retail environment.

In terms of valuation, based on FY24 EPS of ₹4.51, the IPO is priced at a P/E of approximately 28.15x. When compared to listed peers such as Kewal Kiran Clothing Limited and Purple United Sales Limited, which trade around 18x earnings, Kiaasa appears to be offered at a premium valuation. The Grey Market Premium (GMP) currently stands at ₹0, suggesting neutral listing expectations with no immediate listing gains indicated by the unofficial market.

The primary objective of the IPO is expansion-driven, with ₹50.37 crore earmarked for opening new stores and the remainder allocated for general corporate purposes. This aggressive store expansion strategy indicates management’s confidence in scaling operations and strengthening brand visibility across India. Promoters Mr. Om Prakash and Mr. Amit Chauhan will see their shareholding dilute from 71.84% pre-issue to 50.22% post-issue.

Overall, the Kiaasa Retail IPO GMP presents an opportunity to invest in a fast-growing ethnic wear retail brand with strong return ratios and an expansion-focused growth strategy. However, investors should carefully consider the premium valuation, moderate debt levels, and neutral grey market sentiment before applying. This IPO may suit long-term investors who believe in the growth potential of India’s organized ethnic fashion retail segment and are comfortable with the risks associated with SME listings.

https://www.finowings.com/IPO/kiaasa-retail-ipo