Severeconcentrationpage 43
76-92% revenue from Eastern India with West Bengal dominance
These states are providing 76%-92% of total revenue in the last 3 financial years (2025-26, 2024-25 and 2023-24) and for the stub period April to June 30, 2026
ListedSMERKFAL
R.K.Fashion Accessories IPO
R.K.Fashion Accessories IPO is an SME IPO raising ₹35 Cr at ₹77 – ₹82 a share. It listed on 12 Oct 2026 at ₹80, −2.4% against its issue price of ₹82, and trades at ₹56 today (−31.7% since issue). It was subscribed 2.72× in total.
₹82
Issue price
₹56
Price now
−31.7%
Since issue price
12 Oct 2026
Listed on
2.72×Subscribed (final) · all exchanges
2.7 times more demand than shares on offer
populated partly populated we hold nothing here — the tab says why
What the prospectus says could go wrong
Read from the 496-page prospectus. Indian prospectuses list hundreds of risk factors, most of them generic boilerplate. These are the 13 specific to this company; 297 generic ones were skipped. Every one is quoted verbatim with its page, so you can check it against the document.
Severefinancialpage 62
Related party transactions were 66.40% of FY24 revenue
Sum of all related party transaction as a % of revenue from operations 21.43 / 10.79 / 6.10 / 66.40
Severeoperationalpage 73
30% product return rate disclosed
In the past, approximately 30% of the products have been returned due to various reasons, including defects, design concerns, or other customer-related issues.
Severefinancialpage 48
Negative cash flows from operations across multiple periods
Our Company had reported certain negative cash flows from its operating activities, investing activities and financing activities in previous years
Severefinancialpage 57
Receivables collection worsened from 16 to 55 days; turnover collapsed
Debtors Turnover Ratio for the stub period ended June 30, 2026 and financial years ended March 31, 2026, March 31, 2025 and March 31, 2024 are 1.65, 12.20, 17.39 and 22.73 respectively while Trade Receivable Days are 55 days, 30 days, 21 days and 16 days
Highoperationalpage 58
Inventory turnover ratio collapsed from 11.12 to 0.86
Our Inventory Turnover Ratio for the stub period ended June30, 2026 and financial years ended March 31, 2026, March 31, 2025 and March 31, 2024 are 4.70, 5.75 and 11.12 respectively indicating a significant slowdown in our ability to sell and replace inventory
Highfinancialpage 47
Working capital gap of Rs 974.81 lakhs requiring IPO funding
Net Working Capital (A)-(B) (77.01) 142.99 748.21 974.81 ... Working Capital Gap to be funded by IPO - - - - 521.44
Highoperationalpage 45
Manufacturing depends on contract Karigars with no exclusivity
With such Karigars, we have a written arrangement with them for work undertaken and even though some of them have been working with us for significantly long periods, they do not work exclusively for us. The agreements do not include a provision for non-compete and are of a short duration with the option to renew
Highregulatorypage 73
Historical ESIC non-compliance with regulatory exposure
It has been observed that our company was not registered under the ESIC regulations during Financial Years 2023-24, and 2024-25, despite the applicability of registration provisions to our company during the said period.
Highregulatorypage 67
Multiple critical factory approvals not yet applied for
Trade License ... To be applied at an appropriate stage ... Consent to Establish (CTE) ... Consent to Operate (CTO) ... Fire License ... To be applied at an appropriate stage.
Highoperationalpage 73
No intellectual property protection for in-house designs
Our Company develops and utilizes in-house designs for its fashion jewellery products; however, it does not hold registered intellectual property rights, such as design registrations or copyrights, in relation to such creations.
Highpromoterpage 63
Promoters' average acquisition cost as low as Rs 0.37 per share
Mohammed Usman 67,63,076 0.37 ... MD Qasim 44,40,196 0.65 ... The aforementioned average cost of acquisition of Equity Shares by our Promoters may be lower than the Offer Price.
Highmarketpage 57
E-commerce sales declining due to platform dependency
We have faced this kind of situation in the past where sales in one of our online channels has shown a declining trend and hence in revenue
Extracted from the issuer’s own prospectus and ranked by how specific and material each risk is to this company. Severity is our assessment of the disclosure, not a prediction — and nothing here is a recommendation to apply to this issue.
What’s in court
The issuer’s own summary of outstanding legal proceedings — SEBI requires this table in every prospectus. Counts and amounts are as disclosed.
| Against | Criminal | Tax | Other material | Amount at stake |
|---|---|---|---|---|
| The company | 0 | 5 | 0 | ₹0.3 Cr |
| Promoters | 0 | 0 | 0 | — |
| Directors | 0 | 0 | 0 | — |
case₹0.2 Crpage 361
Direct Tax demand against R.K. Fashion Accessories Ltd for AY 2018-19 of Rs 21,98,660 + interest Rs 9,45,398 (Demand Ref 2022201837001525540C) — largest item
case₹0.0 Crpage 362
Direct Tax demand against Company for AY 2018-19 (second) of Rs 1,05,800 + interest Rs 45,494 (Demand Ref 2022201837001525540C)
case₹0.0 Crpage 361
Direct Tax demand against Company for AY 2019-20 of Rs 1,03,780 + interest Rs 19,703 (Demand Ref 2024201937347725645C)
case₹0.0 Crpage 362
Direct Tax demand against KMP/SMP CFO MD Khurshid Alam for AY 2017-18 of Rs 1,540 + interest Rs 1,395 (Demand Ref 2018201837049632700T)
case₹0.0 Crpage 362
TDS default against Company totalling Rs 800 (Rs 360 for FY 2025-26, Rs 440 for FY 2018-19)
1 crore = 100 lakhs. The KMP/SMP tax case sits in a separate 'Proceedings involving KMPs and SMPs' section, not under Directors. The Company's 5 tax cases comprise 3 Direct Tax (Income Tax) matters aggregating Rs 34.19 lakhs and 2 Direct Tax (TDS) matters aggregating Rs 0.01 lakh; Indirect Tax (GST) = Nil. No criminal, regulatory/disciplinary, or material civil proceedings are disclosed against the Company, Promoters, Directors, Subsidiary, or Group Companies. No grand-total amount is explicitly stated; per-bucket sums are derived only from stated line items.. Outstanding means unresolved — a listed case is an exposure, not a verdict.
Source documents
What the issuer and the exchanges published. Everything else on this tab is read out of these.
Prospectus on SEBI ↗
The full prospectus — business, financials, risk factors and litigation.
Basis of issue price (peer ratios) ↗
The issuer's own "basis of issue price": the earnings multiples it is asking for, and the peer companies it chose to compare itself against.
Red Herring Prospectus ↗
The full prospectus — business, financials, risk factors and litigation.