CELEBRITY - Celebrity Fash.
📢 Recent Corporate Announcements
Celebrity Fashions Limited has secured in-principle approval from both NSE and BSE for the issuance of 48,69,933 equity shares on a preferential basis. The shares are priced at ₹10.31 each, which includes a face value of ₹10 and a premium of ₹0.31. This move will result in a capital infusion of approximately ₹5.02 crore into the company. The approval is subject to the company fulfilling standard regulatory conditions and filing for final listing post-allotment.
- In-principle approval received for 48,69,933 fully paid equity shares
- Issue price fixed at ₹10.31 per share, including a ₹0.31 premium
- Total fundraise amount estimated at approximately ₹5.02 crore
- Approvals received from both NSE and BSE on March 09, 2026
- Company advised to monitor trades by allottees to ensure compliance with SEBI ICDR regulations
Celebrity Fashions Limited has issued a clarification regarding a typographical error in its Postal Ballot Notice dated January 19, 2026. The pre-issue promoter shareholding was incorrectly stated as 35.42% and has been corrected to 33.42%. This clarification follows observations from the National Stock Exchange during the in-principle approval process for a preferential issue of equity shares. The total share capital is set to increase from 5,96,78,413 to 6,45,48,346 shares post-allotment.
- Corrected pre-issue promoter shareholding to 33.42% from the previously reported 35.42%
- Post-issue promoter holding will stand at 33.15% of the expanded capital base
- Total equity shares to increase to 6,45,48,346 following the preferential allotment
- Clarification issued after NSE observation; no changes to allottees or categories
- The preferential issue resolution was previously approved by shareholders on February 18, 2026
Celebrity Fashions Limited has reported its unaudited financial results for the quarter and nine months ended December 31, 2025. The company faces significant financial strain with accumulated losses amounting to Rs. 53.23 crores as of the end of the period. Notably, the independent auditors have included a paragraph regarding 'Material Uncertainty Related to Going Concern' in their review report. Despite these concerns, the financial statements continue to be prepared on a going concern basis following management's evaluation.
- Accumulated losses reached Rs. 53.23 crores as of December 31, 2025.
- Auditors highlighted a material uncertainty regarding the company's ability to continue as a going concern.
- The Board approved the unaudited standalone financial results for the quarter and nine-month period ended December 2025.
- The auditor's review conclusion was not modified despite the emphasis on financial uncertainty.
Celebrity Fashions Limited approved its un-audited financial results for the quarter and nine months ended December 31, 2025. A significant highlight is the auditor's note on material uncertainty regarding the company's ability to continue as a going concern due to accumulated losses of Rs. 53.23 crores. While the auditor has not modified their opinion, the financial health of the company remains under pressure. Investors should note that the results were prepared on a going concern basis despite these financial hurdles.
- Board approved un-audited financial results for Q3 and nine months ended Dec 31, 2025.
- Auditor highlighted accumulated losses totaling Rs. 53.23 crores as of Dec 31, 2025.
- Material uncertainty related to 'Going Concern' was specifically mentioned in the review report.
- The auditor's conclusion was not modified, but the note indicates significant financial stress.
Celebrity Fashions Limited has issued a postal ballot notice to seek shareholder approval for a preferential issue of 48,69,933 equity shares. The shares are priced at ₹10.31 each, aiming to raise approximately ₹5.02 crore from a mix of promoters and public investors. Additionally, the company is proposing to reclassify its authorized share capital to increase the equity portion to 7 crore shares. This capital infusion, involving key management and promoters, suggests internal confidence in the company's trajectory.
- Preferential issue of 48,69,933 equity shares at ₹10.31 per share (including ₹0.31 premium).
- Total fundraise amount of approximately ₹5.02 crore from promoters and external investors.
- Promoter group members to subscribe to 14,54,898 shares, representing roughly 30% of the issue.
- Reclassification of authorized share capital to increase equity share limit from 6.4 crore to 7.0 crore shares.
- Remote e-voting for shareholders is scheduled from January 20, 2026, to February 18, 2026.
Celebrity Fashions Limited has approved a preferential issue of 48,69,933 equity shares to raise approximately ₹5.02 crores. The shares are priced at ₹10.31 each, which includes a nominal premium of ₹0.31 per share. The issue is being allocated to a mix of promoters, a director, and a public body corporate, signaling strong internal backing. This capital infusion is subject to necessary shareholder and regulatory approvals.
- Issuance of 48,69,933 equity shares at a fixed price of ₹10.31 per share
- Total fundraise amount aggregates to approximately ₹5.02 crores
- Promoter group members, including the Chairman and MD, are subscribing to over 14.5 lakh shares
- Independent Director Manoj Mohenka and Paradisal Precision Private Limited are among the key allottees
- The move aims to strengthen the company's capital base through private placement
Celebrity Fashions Limited has approved the issuance of 48,69,933 equity shares on a preferential basis to raise approximately ₹5.02 crore. The shares are priced at ₹10.31 each, which includes a premium of ₹0.31 per share. The allottees include the company's promoters, an independent director, and a public body corporate, signaling internal confidence. This announcement is a revised disclosure to provide exact numerical figures following a previous board meeting outcome.
- Total fundraise of ₹5,02,09,009.23 through the issuance of 48,69,933 equity shares
- Issue price set at ₹10.31 per share, including a ₹0.31 premium
- Promoter group (Venkatesh, Vidyuth, and Rama Rajagopal) to subscribe to 14,54,898 shares
- Public category allottees include Independent Director Manoj Mohenka and Paradisal Precision Private Limited
- Post-allotment, the total equity base will expand to 2,79,39,851 shares assuming full subscription
Celebrity Fashions Limited has approved a preferential issue of 48,69,932 equity shares at a price of ₹10.31 per share, totaling approximately ₹5.02 crore. The issue involves five investors, including the company's promoters and an independent director, which reflects management's commitment to the business. To facilitate this, the company is reclassifying its authorized share capital, converting 60 lakh preference shares into equity shares. This capital restructuring and fundraise are subject to shareholder approval via a postal ballot.
- Approved preferential issue of 48,69,932 equity shares at ₹10.31 per share (including ₹0.31 premium).
- Total fundraise of ₹5.02 crore from promoters, a director, and a body corporate.
- Reclassification of authorized capital to increase equity share limit from 6.4 crore to 7 crore shares.
- Promoter group members (Venkatesh, Vidyuth, and Rama Rajagopal) to subscribe to 14.55 lakh shares.
- Paradisal Precision Private Limited (Public Category) to be the largest allottee with 22.03 lakh shares.
Celebrity Fashions Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by its Registrar and Transfer Agent (RTA) MUFG Intime India Private Limited, covers the quarter ended December 31, 2025. It confirms that all securities received for dematerialization were processed and the physical certificates were mutilated and cancelled as per regulations. This is a standard procedural filing required for all listed entities in India to ensure the integrity of the dematerialization process.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- RTA MUFG Intime India Private Limited confirmed processing of all dematerialization requests.
- Physical security certificates were mutilated and cancelled after due verification by the depository participant.
- The name of the depositories has been substituted in the register of members within prescribed timelines.
Celebrity Fashions Limited has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI Insider Trading regulations. This closure is ahead of the declaration of the unaudited financial results for the quarter and nine months ending December 31, 2025. The window will remain closed for all designated persons until 48 hours after the results are officially announced. This is a standard regulatory procedure for listed companies to prevent insider trading prior to earnings disclosures.
- Trading window closure commences on January 1, 2026.
- Closure pertains to the financial results for the quarter and nine months ending December 31, 2025.
- The window will reopen 48 hours after the declaration of the unaudited financial results.
- The restriction applies to all designated persons, connected persons, and their immediate relatives.
Financial Performance
Revenue Growth by Segment
The company reported a 5.92% decline in total operating income from INR 364.24 Cr in FY23 to INR 342.66 Cr in FY24. In Q1 FY25, revenue plummeted by 63.2% YoY to INR 36.24 Cr due to the loss of a major customer who previously contributed over 60% of total revenue.
Geographic Revenue Split
The company has high geographic concentration with the United States accounting for over 80% of the order book as of August 2025. This makes the company highly sensitive to US trade policies and consumer demand shifts.
Profitability Margins
Net profit after tax (PAT) margins declined from 1.69% in FY23 to 0.54% in FY24. The company reported a PAT of INR 1.84 Cr in FY24, a 70.08% decrease from INR 6.15 Cr in FY23, driven by lower scale and intense competitive pressure.
EBITDA Margin
EBITDA margin was 5.65% for FY24 but turned to a negative 16.14% in Q1 FY25. This sharp decline is primarily due to poor fixed cost absorption following a significant reduction in the scale of operations.
Capital Expenditure
Historical capital expenditure details are not explicitly provided, but the company has been raising funds to repay preference shares (INR 5 Cr per annum) from FY22 to FY24 rather than for major capacity expansion.
Credit Rating & Borrowing
Ratings were downgraded in September 2025 to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL BB-/Stable/CRISIL A4+'. Borrowing costs are impacted by an average financial risk profile with an interest coverage ratio that fell from 2.99x in FY23 to 1.95x in FY24.
Operational Drivers
Raw Materials
Woven cotton fabric and related textile trims represent the primary raw material costs, though specific percentage breakdowns per material are not disclosed in the available documents.
Capacity Expansion
Current capacity is not specified in MT or units; however, the company is currently focused on stabilizing operations rather than expansion, as EBITDA losses in FY25 have constrained capital for growth.
Raw Material Costs
Raw material costs are a significant portion of the operating expenses, and margins are currently under pressure due to a 63.2% drop in revenue which prevents efficient cost absorption.
Manufacturing Efficiency
Manufacturing efficiency has declined significantly in FY25, with negative EBITDA of 16.14% indicating that the current production volume is insufficient to cover fixed overheads.
Strategic Growth
Expected Growth Rate
20%
Growth Strategy
The company aims to achieve recovery through better order inflow from existing customers and the addition of new customers to replace the lost 60% revenue base. Strategic focus is on improving the operating margin to over 4% and stabilizing the capital structure to support cash accruals.
Products & Services
Readymade woven cotton garments for men and women, primarily for the export market.
Brand Portfolio
The company primarily operates as an exporter for international brands including Timberland, Northface, and LLBean.
Market Expansion
The company is looking to diversify its customer base to mitigate the impact of the recent major client loss, though specific target regions beyond the US are not detailed.
External Factors
Industry Trends
The readymade garment export industry is seeing a shift toward low-cost manufacturing hubs. CFL is positioned as an experienced player but faces disruption from lower-cost competitors in Bangladesh and Southeast Asia.
Competitive Landscape
Intense competition from both organized and unorganized players in India, Bangladesh, and Southeast Asia, which limits scalability and profitability.
Competitive Moat
The company's moat is based on the 20-year experience of its promoters and established relationships with premium global brands. However, this moat is currently weakened by the loss of a major revenue contributor and low pricing power.
Macro Economic Sensitivity
Highly sensitive to global trade dynamics and US economic health, as 80% of the order book is US-based.
Consumer Behavior
Demand is driven by global apparel trends and consumer spending in the US; a slowdown in these regions directly impacts order inflows.
Geopolitical Risks
Exposure to international trade barriers and global tariffs is a key monitorable, especially given the high concentration of exports to the US market.
Regulatory & Governance
Industry Regulations
Operations are subject to international manufacturing standards required by global brands and export-import regulations between India and the US.
Legal Contingencies
The company faces potential risks from the materialization of contingent liabilities, which could significantly deteriorate the financial risk profile and liquidity, though specific INR values for pending cases are not provided.
Risk Analysis
Key Uncertainties
The primary uncertainty is the ability to replace the 60% revenue gap left by a major customer exit. Failure to do so will lead to continued negative cash accruals (currently insufficient to cover debt obligations).
Geographic Concentration Risk
80% of revenue is concentrated in the US market.
Third Party Dependencies
High dependency on a few large international apparel brands for the majority of the order book.
Credit & Counterparty Risk
Receivables stood at 60-67 days as of March 2024, indicating a moderate credit risk from international buyers.