Gaurik Fashions Seeks ₹125 Crore in IPO as It Files Draft Red Herring Prospectus (DRHP).

Gaurik Fashions Limited, a prominent retail player operating major brands like Skechers, Guess?, and Bugatti across India, has recently filed its draft red herring prospectus with SEBI on May 10, 2026, indicating plans for an IPO on both the NSE and BSE. The issue size is estimated to be around ₹125 crore, comprising a mix of fresh issuance and an offer for sale, with a total of approximately 70 lakh shares. This significant move is notable as the company previously reported a net worth of merely ₹0.41 crore in FY20, showcasing an impressive turnaround in its financial position.

The financial metrics underline Gaurik’s robust transformation, where revenue increased from ₹57.98 crore in FY23 to ₹220.40 crore in FY25, with projections indicating FY26 revenue could surpass ₹270 crore. Additionally, the company has improved its EBITDA margins from 21.27% to 26.14%, and profit after tax surged from ₹0.35 crore to ₹17.33 crore within a mere nine months leading up to FY26. The reduced debt-to-equity ratio, now at 0.92, further accentuates the company’s strengthened financial health, making it an attractive proposition for potential investors.

For Indian investors, the impending IPO presents both opportunities and risks. While the brand portfolio is strong, relying heavily on the performance of major franchises like Skechers (56.16% of revenue) exposes the business to vulnerabilities, particularly in geographical concentration with 57% of sales from Delhi-NCR and Karnataka. The strategic plans to utilize ₹64.08 crore for debt repayment and allocate funds towards expanding their retail footprint could foster growth, yet potential investors should be cognizant of market fluctuations and changing fashion trends that may impact revenue streams.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)