Vashishtha Luxury Fashion Ltd IPO Opens for Subscription: All You Need to Know

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By Staff Reporter | September 8, 2025

Mumbai: The initial public offering (IPO) of Vashishtha Luxury Fashion Ltd, a premium apparel and lifestyle brand, has opened for subscription on September 5, 2025, and will close on September 10, 2025. The company, which is tapping the capital markets with its maiden public issue, aims to raise ₹8.87 crore through a fresh issue of 7.99 lakh shares.

The IPO is being carried out via the book-building process, and the shares are proposed to be listed on the BSE SME platform. The listing date is scheduled for September 15, 2025.

IPO Structure and Price Band

The company has fixed the price band for the issue between ₹109 and ₹111 per equity share, with a face value of ₹10 each.

Total Issue Size: ₹8.87 crore
Fresh Issue Shares: 7,99,200 equity shares
Lot Size: 1,200 shares
Minimum Investment: ₹133,200 for retail investors (one lot)
Retail Investor Cap: Maximum 2,400 shares or ₹2,66,400

Out of the total shares offered, 4,17,600 shares are earmarked for retail investors, while the remaining portion has been allocated to non-institutional and qualified institutional buyers.

About the Company

Vashishtha Luxury Fashion Ltd operates in the high-end fashion and luxury apparel segment. The company specializes in designing, manufacturing, and retailing premium clothing and lifestyle products targeted at India’s growing affluent and aspirational customer base.

With a strong focus on quality craftsmanship, innovative designs, and sustainable practices, the brand aims to carve a niche in India’s expanding luxury market. The company’s product portfolio spans:

Designer apparel (ethnic and western wear)
Luxury accessories
Occasion-based fashion collections
Customized high-end clothing solutions

The brand has established a loyal customer base through exclusive outlets, multi-brand retail tie-ups, and an emerging e-commerce presence.

Objectives of the IPO

The company plans to utilize the net proceeds from the IPO for the following purposes:

Working Capital Requirements – To strengthen its liquidity position and support operations amid growing demand.
Business Expansion – To scale its retail network and enhance its online presence.
Brand Building & Marketing – To increase visibility in domestic and international markets.
General Corporate Purposes – Including investment in technology, design innovation, and infrastructure.

By leveraging IPO funds, the company hopes to expand its reach into India’s tier-1 and tier-2 cities while also exploring global markets where Indian luxury fashion has growing demand.

Industry Overview

India’s luxury fashion industry has been witnessing rapid growth, fueled by rising disposable incomes, increased exposure to global fashion trends, and a surge in premium lifestyle consumption. According to industry reports:

The Indian luxury goods market is expected to grow at a CAGR of 10-12% over the next five years.
Premium apparel forms a major segment of this growth, with consumer preferences shifting towards high-quality, branded, and personalized fashion.
Increasing adoption of online luxury retailing is further expanding the market reach.

Vashishtha Luxury Fashion Ltd, with its boutique positioning, aims to capitalize on this demand surge by offering curated collections that blend traditional craftsmanship with modern style.

Financial Snapshot

While detailed financial disclosures have been made in the company’s draft red herring prospectus (DRHP), highlights suggest:

Stable Revenue Growth: The company has posted consistent year-on-year growth in sales, driven by retail expansion and brand awareness.
Healthy Margins: Operating in the luxury segment allows the company to maintain relatively higher margins compared to mass-market players.
Scalability: With the infusion of IPO funds, the company expects to improve inventory management, retail penetration, and technology-led operations.

Subscription and Grey Market Premium (GMP)

As of early subscription data, market watchers noted investor interest in the SME IPO, though final subscription figures will be clear only after the issue closes on September 10, 2025.

In the grey market, the stock is reported to be quoting at a small premium, signaling cautious optimism among investors. However, experts advise looking at fundamentals and long-term growth potential before making investment decisions, as SME IPOs often carry higher risk-reward profiles.

Expert Commentary

Market experts believe the IPO is strategically timed, given the strong growth trajectory of India’s luxury fashion sector.

According to a Mumbai-based analyst:

“The Indian luxury fashion space is still under-penetrated, offering significant headroom for growth. A company like Vashishtha Luxury Fashion, with a niche focus, could capture market share if it executes its expansion well. Investors, however, should be mindful of valuation and liquidity risks associated with SME stocks.”

Another market watcher added:

“The IPO size is modest, but the company’s positioning in the high-end fashion segment could attract investors looking for exposure to lifestyle and luxury consumption themes.”

Conclusion

The Vashishtha Luxury Fashion Ltd IPO represents an opportunity for investors to participate in India’s growing luxury lifestyle story. With a listing scheduled for September 15, 2025, on the BSE SME platform, the response from investors in the final days of the subscription window will be crucial in determining its debut performance.

For retail investors, the key will be to balance the company’s promising sectoral outlook with the inherent risks of investing in smaller-cap IPOs.