The Indian primary market continues to witness strong activity in 2025 with several SME and mainboard IPOs tapping into investor appetite. Among them, Vashishtha Luxury Fashion Ltd., a Mumbai-based luxury fashion exporter, has launched its IPO on September 5, 2025, aiming to raise ₹8.87 crore.
The IPO has caught attention not just for its niche business model in high-fashion embroidery and luxury garment exports, but also for its robust growth in FY25 profits. However, market sentiment remains cautious, with the Grey Market Premium (GMP) hovering at neutral levels (0%).
This report covers every important aspect of the IPO — company background, issue structure, financial performance, market outlook, risks, opportunities, subscription trends, and expert analysis.
🏢 Company Overview – Vashishtha Luxury Fashion Ltd.
- Founded: 2010 (converted to a Limited company in 2022)
- Headquarters: Mumbai, Maharashtra
- Industry: Luxury fashion exports, hand embroidery, designer garments, and accessories
- Global Presence: Europe, UK, USA, Australia, Turkey
- Specialization: Handmade embroidery and high-value fashion products
The company operates in the premium fashion space, supplying luxury embroidery work and garments to global brands. India’s traditional craftsmanship, especially hand embroidery, has always been valued worldwide, and Vashishtha Luxury Fashion leverages this demand.
With consistent export orders and rising global exposure, the company has shown remarkable financial growth over the past two years.
📊 Vashishtha Luxury Fashion Ltd. IPO Details
| Particulars | Details |
|---|---|
| IPO Type | SME IPO (BSE SME) |
| Issue Size | ₹8.87 crore |
| Fresh Issue | 7.99 lakh equity shares |
| Price Band | ₹109 – ₹111 per share |
| Lot Size | 1,200 shares (₹2.66 lakh minimum investment) |
| Minimum Retail Investment | 2 lots (₹2.66 lakh) |
| IPO Open Date | September 5, 2025 |
| IPO Close Date | September 10, 2025 |
| Basis of Allotment | September 11, 2025 |
| Refunds | September 12, 2025 |
| Demat Credit | September 14, 2025 |
| Listing Date | September 15, 2025 |
| Stock Exchange | BSE SME |
| Promoters’ Holding Pre-IPO | 100% |
| Promoters’ Holding Post-IPO | ~66.08% |
💰 IPO Objectives – Where Will Funds Be Used?
The company plans to utilize the IPO proceeds in the following way:
- Capital Expenditure – ₹3.64 crore (~41%) for purchasing new embroidery machines to expand capacity.
- Debt Repayment – ₹2.69 crore (~30%) for reducing borrowings and strengthening the balance sheet.
- General Corporate Purposes – ~₹2.54 crore (~29%) for business expansion, working capital, and other needs.
This indicates the company is focused on capacity expansion and debt reduction, which are positive long-term moves.
📑 Financial Performance
FY25 Key Highlights:
- Revenue: ₹10.88 crore (↑46% YoY)
- Profit After Tax (PAT): ₹1.42 crore (↑346% YoY)
- Return on Equity (ROE): 28.28%
- Return on Capital Employed (ROCE): 31.43%
The company’s profit growth is impressive, with a sharp jump in margins in FY25. Its high ROE and ROCE show strong operational efficiency.
⚖️ Valuation Analysis
- At the upper price band of ₹111, the IPO values the company at:
- Post-IPO P/E ratio: ~23x (based on FY25 earnings).
- For an SME in the luxury fashion segment, this valuation is slightly aggressive, especially considering export dependency and small revenue base.
🌍 Industry Outlook
- The Indian textile and fashion export industry is worth over $40 billion and continues to grow due to global demand.
- Luxury fashion exports have niche but high-margin potential.
- Rising demand for “Made in India” handcrafted embroidery gives the company a competitive edge.
- However, competition from China, Vietnam, and Bangladesh remains a challenge.
⚠️ Risks & Concerns
- Export Dependency – Heavy reliance on international markets makes the company vulnerable to currency fluctuations and global demand changes.
- Small Size – With just ₹10.88 crore revenue, it remains a micro-cap player.
- High Entry Barrier for Retail Investors – ₹2.66 lakh minimum investment restricts small retail participation.
- Neutral GMP – Suggests lack of strong listing demand.
- Liquidity Risk – Being listed on BSE SME, trading volumes could remain thin.
✅ Strengths & Opportunities
- Strong global customer base across multiple countries.
- High-margin luxury embroidery and garment niche.
- Strong financial growth in FY25.
- IPO proceeds to reduce debt and expand capacity, boosting future profitability.
📅 IPO Timeline
| Event | Date |
|---|---|
| IPO Opening Date | September 5, 2025 |
| IPO Closing Date | September 10, 2025 |
| Basis of Allotment | September 11, 2025 |
| Refund Initiation | September 12, 2025 |
| Credit to Demat Accounts | September 14, 2025 |
| Listing Date | September 15, 2025 |
📊 Should You Apply for Vashishtha Luxury Fashion IPO?
- For Short-Term Investors: Neutral GMP and slow subscription may mean limited listing gains. Not ideal for pure listing gain seekers.
- For Long-Term Investors: If you believe in the luxury export fashion story, the company offers strong growth potential. Debt repayment and capacity expansion are positives.
- Retail Limitation: High investment ticket size makes it suitable mainly for HNIs and sophisticated investors, not small retail investors.
Verdict: Cautious approach recommended. Risk-tolerant investors with long-term vision may consider applying, but those seeking quick listing gains should wait.
❓ Frequently Asked Questions (FAQs)
Q1. What is the Vashishtha Luxury Fashion IPO price band?
👉 The price band is ₹109 – ₹111 per share.
Q2. What is the lot size and minimum investment?
👉 Lot size is 1,200 shares. Minimum retail investment is ₹2.66 lakh.
Q3. When will Vashishtha Luxury Fashion IPO allotment be declared?
👉 On September 11, 2025.
Q4. When will the shares list on stock exchanges?
👉 On September 15, 2025, on the BSE SME platform.
Q5. What is the Vashishtha Luxury Fashion IPO GMP today?
👉 GMP is ₹0 (neutral) as of now.
📌 Conclusion
The Vashishtha Luxury Fashion Ltd. IPO presents a unique niche play in India’s luxury fashion export market. Its financial growth is impressive, and the IPO proceeds will strengthen operations further. However, the high minimum investment, cautious market sentiment, and neutral GMP make it a risky bet for short-term investors.
For long-term investors who believe in the global demand for Indian handcrafted luxury fashion, this IPO can be an opportunity to enter early in a growing SME brand with export-focused ambitions.
Subscription
| Investor | 05 Sep 2025 | 08 Sep 2025 | 10 Sep 2025 |
|---|---|---|---|
| Anchor | 0 | 0 | |
| QIB | 0.00 | 0.00 | |
| Non-Institutional | 0.00 | 0.00 | |
| BNII | 0.00 | 0.20 | |
| SNII | 0.04 | 0.08 | |
| Retail | 0.13 | 0.32 | |
| Total | 0.08 | 0.18 |
GMP Trend:
| Date | GMP |
|---|---|
| 05 Sep 2025 | ₹0.00(0.00%) |
| 08 Sep 2025 | ₹0.00(0.00%) |
| 10 Sep 2025 |
It should be noted that IPO GMP is subject to extreme volatility, so an investment decision based solely on Patel Retail IPO GMP will prove risky. Therefore, before to investing, consider all factors and make the right investment decision whether to invest in Patel Retail IPO or not.
How to Check IPO Allotment Status:
Bigshare Services
To check IPO allotment status, follow the steps below:
- Click on the below allotment status check button.
- Select Company Name.
- Enter your PAN Number, Application Number or DP Client ID (Anyone).
- Click on Search.
NSE Website
To check IPO allotment status, follow the steps below:
- Click on the below allotment status check button.
- Select Company Name.
- Enter your PAN Number, Application Number or DP Client ID (Anyone).
- Click on Search.
BSE Webiste
To check IPO allotment status, follow the steps below:
- Click on the below allotment status check button.
- Select Company Name.
- Enter your PAN Number, Application Number or DP Client ID (Anyone).
- Click on Search.
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- Disclaimer: This post is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy/sell any stock or share. Investing in the stock market involves risk. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial advisor before making investment decisions.
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- ⚠️ IPO (Initial Public Offerings)
- IPO details, issue size, subscription data, and allotment status shared here are based on publicly available information from company filings, stock exchanges, and merchant bankers.
- Investing in IPOs carries risks including listing volatility, business uncertainties, and sector performance dependency.
- Neither acceptance of applications nor allotment guarantees profits. Investors should evaluate their risk appetite before subscribing.
- ⚠️ GMP (Grey Market Premium)
- Grey Market Premium (GMP) is an unofficial and unregulated indicator of expected IPO listing price.
- GMP data is collected from market observers and informal trading circles; it does not have any legal or SEBI recognition.
- GMP values are highly speculative and may differ significantly from actual listing prices. Investors should not rely solely on GMP while taking investment decisions.
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