Vashishtha Luxury Fashion Ltd launches its SME IPO on September 5, 2025. Learn about its price band (₹109–₹111), lot size (1,200 shares), issue size (~₹8.87 Cr), listing date, business insights, pros & cons, and whether it’s worth investing in.
Introduction
Set your calendars! Vashishtha Luxury Fashion Ltd is opening its IPO from September 5 to 10, 2025. This SME IPO offers a glimpse into India’s high-fashion export segment—hand embroidery, premium garments, and accessories catering to global markets. With a modest issue size (~₹8.87 crore), the IPO sets a compelling stage. This blog unveils every detail you need—from financials and risks to investor FAQs.
IPO Snapshot
| Detail | Information |
|---|---|
| Open Date | 05 Sept 2025 |
| Close Date | 10 Sept 2025 |
| Listing Date | 15 Sept 2025 (BSE-SME) |
| Price Band | ₹109 – ₹111 per share |
| Lot Size | 1,200 shares (₹1,30,800 approx.) |
| Issue Size | ₹8.87 crore |
| Fresh Issue | 7,99,200 equity shares |
| Promoter Holding Pre-Issue | 100% |
| Post-Issue Promoter Hold | ~66.08% |
Company Overview
Founded in 2010 (and incorporated in 2022), Vashishtha Luxury Fashion Ltd is a 100% export house headquartered in Mumbai. Known for high-fashion hand-embroidered garments and accessories, the company caters to couture and prêt-à-porter brands in markets such as Europe, the US, UK, Australia, and Turkey. It operates through a subsidiary, Vashishtha Embroidery Pvt Ltd, leveraging craftsmanship and custom design capabilities.
Objectives of the IPO
Funds raised will be deployed towards the following:
- Capital Expenditure: Purchase of advanced embroidery machines (~₹3.64 Cr; 41%)
- Debt Repayment: Clearing outstanding borrowings (~₹2.69 Cr; 30%)
- General Corporate Purposes: Operational flexibility (~₹2.54 Cr; 29%)
Financial Highlights
| Fiscal Year Ending March | Revenue (₹ Cr) | PAT (₹ Cr) | Assets (₹ Cr) |
|---|---|---|---|
| 2022 | 4.24 | 1.05 | 7.03 |
| 2023 | 6.86 | 1.05 | 7.41 |
| 2024 | 7.45 | 0.32 | 7.89 |
These figures reflect a growing top line but highlight a dip in profits for FY2024—possibly due to reinvestment and expansion.
Strengths & Growth Levers
- Global Niche Expertise: Renowned craftsmanship in embroidery keeps brands coming back.
- Design-Centric Model: Custom solutions cater to high-fashion demand.
- Scalability: IPO proceeds enhance production capabilities.
- Export Orientation: 100% export-driven business increases growth potential.
Risks & Challenges
- Limited Operating History: Still emerging—may lack predictability.
- Client Concentration: Heavy reliance on few clients or regions poses risk.
- Compliance Issues: Past delays in filings could lead to regulatory concerns.
- Production Dependence: Relies on subsidiary and promoter-linked manufacturing.
- High Seasonality: Revenues may fluctuate during fiscal festive lows.
Should You Apply? Investment Perspective
5 Key Prospective Benefits
- Listing Opportunity: SME IPOs often deliver early gains through listing premiums.
- Growth Potential: Backed by international demand and fresh capacity.
- Compact Investment: Easy to bid for as lot size is manageable.
- Export Leverage: Exposure to global fashion trends can drive revenue.
- Focused Utilization: Clear capital investment strategy enhances accountability.
Key Investor Considerations
- Tight financial scale might need follow-up funding rounds.
- Global economic or currency volatility may hit margins.
- Seasonality and customer concentration raise execution risk.
Conclusion
Vashishtha Luxury Fashion Ltd’s IPO is a boutique investment in India’s fashion export story—combining high craftsmanship with global demand. If the listing unfolds strongly and production scales well, investors could benefit. However, fiscal prudence and risk-awareness remain vital.
FAQs
Q1. When does Vashishtha IPO open and close?
Opens on 5 Sept 2025 and closes on 10 Sept 2025.
Q2. What’s the price band and lot size?
Price band: ₹109–₹111 per share. Lot size: 1,200 shares (~₹1.31 lakh).
Q3. When will the IPO be listed?
Expected listing date: 15 Sept 2025 on BSE SME.
Q4. How will IPO funds be used?
To buy embroidery machines, repay debt, and meet corporate needs.
Q5. What are the company’s recent financials?
FY2024 revenue: ₹7.45 Cr; PAT: ₹0.32 Cr; Assets: ₹7.89 Cr.
Q6. What strengths does the company offer?
Few include export focus, craftsmanship, customizable offerings, and scalable production.
Q7. What are the risks involved?
Includes client concentration, seasonality, regulatory history, and limited operational span.
Disclaimer
This article is for educational purposes only and does not constitute investment advice. Consult a certified financial advisor before acting on any details provided here.
Internal Link :-
- Amanta Healthcare Ltd IPO 2025: Date, Price Band, GMP, Financials & Review
- Abril Paper Tech IPO 2025: Price, GMP, Lot Size, Dates, Financials & Key Detail
- Sugs Lloyd IPO 2025 – Dates, Price Band, GMP, Allotment & Review
- Snehaa Organics IPO 2025 – Price Band, GMP, Subscription, Allotment & Detailed Review
- Goel Construction Company Ltd IPO: GMP, Price Band, Allotment, and Listing Details
