Vashishtha Luxury Fashion Ltd, a Mumbai company that makes and exports hand-embroidered garments, is finishing its SME IPO today. The issue looks to raise about ₹9 crore, with shares priced around ₹109–₹111 each. After the IPO process, the stock is expected to list on the BSE SME platform on September 15.
Subscription Response
The IPO opened on September 5 and has seen only moderate demand. By the second-last day, it was just fully subscribed. Small investors showed a bit more interest than big investors, while institutions mostly stayed away. The grey market premium has stayed flat, which means there isn’t much buzz about strong listing gains.
Use of Funds and Strategy
The company plans to channel IPO proceeds into working capital, branch expansion, and strengthening product development. Unlike many SME issuers who primarily refinance debt, Vashishtha’s pitch is that the funds will go directly into growth.
Business Profile
Founded in Mumbai, Vashishtha Luxury Fashion has carved a niche in luxury fashion exports, particularly high-end hand embroidery supplied to couture houses globally. Its clientele is concentrated but premium, positioning it in a unique segment of India’s textile and apparel exports.
Financial Performance
The company has reported steady growth in income and profit over the past three years. According to restated standalone accounts:
Vashishtha Luxury Fashion — Financial Snapshot (₹ Cr)
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Assets | 9.00 | 7.89 | 7.41 |
| Total Income | 10.88 | 7.45 | 6.86 |
| Profit After Tax | 1.42 | 0.32 | 1.05 |
| EBITDA | 2.07 | 0.73 | 1.27 |
| Net Worth | 4.64 | 1.78 | 1.47 |
| Reserves & Surplus | 3.08 | 0.67 | 0.36 |
| Total Borrowing | 2.07 | 3.26 | 3.44 |
Source: Company filings, RHP (via IPO details)
In FY25, revenue grew by about 46% compared to FY24, while profit after tax jumped sharply from a low base. Net worth has improved, and borrowings have come down, which signals a cleaner balance sheet.
Risks to Watch
Even with growth, analysts caution that SME stocks come with liquidity challenges and higher volatility. The minimum investment size for retail bidders—around ₹2.6 lakh—was a barrier for smaller investors. Post-listing, trading volumes may remain thin, meaning sharp price swings are likely.
Outlook
The listing will be closely watched on September 15. Without a grey market premium, expectations for a bumper debut are low. The long-term story depends on how Vashishtha scales its export business, diversifies its customer base, and manages margins.
For live listing price and updates, investors can track the official BSE SME website
Interested in Vashishtha Luxury Fashion IPO?
Apply for the IPO through your broker or exchange portal. Stay updated with official market sources for allotment and listing.
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