Vashishtha Luxury Fashion IPO Opens for Subscription: Key Details and GMP

Vashishtha Luxury Fashion, a Mumbai-based exporter of high-fashion hand embroidery, garments, and accessories, opened its IPO for subscription on Friday. The IPO consists of a fresh issue of 7.99 lakh equity shares, aggregating up to Rs 8.87 crore, with a price band of Rs 109-111 per share. The company plans to use the proceeds primarily for expansion and debt reduction. The IPO is valued at Rs 8.87 crore and will close on September 10.

Title: Vashishtha Luxury Fashion IPO: Key Details and Financial Insights

Vashishtha Luxury Fashion Limited, a Mumbai-based exporter of high-fashion hand embroidery, garments, and accessories, opened its Initial Public Offering (IPO) for subscription on Friday, September 5, 2025. The IPO consists of a fresh issue of 7.99 lakh equity shares, aggregating up to Rs 8.87 crore, with a price band of Rs 109-111 per share. The company plans to use the proceeds primarily for expansion and debt reduction.

The IPO will close on September 10, 2025, with the tentative listing date set for September 15, 2025. The company's market capitalization stands at Rs 26.16 crore, with a strong focus on export markets across Europe, the UK, the USA, Australia, and Turkey. Key financial indicators, such as Return on Equity (ROE) of 28.28% and Return on Capital Employed (ROCE) of 31.43%, highlight the company's profitability and efficiency.

Vashishtha Luxury Fashion Limited's IPO is a book-built issue, aggregating up to Rs 8.87 crore through the sale of 7.99 lakh shares. The proceeds will be used for the purchase of embroidery machines for expansion (Rs 3.64 crore), prepayment/repayment of certain outstanding borrowings (Rs 2.69 crore), and general corporate purposes. The IPO is valued at Rs 8.87 crore and will close on September 10, 2025.

The company's promoter holding will reduce from 100% to 66.08% post-IPO, with the net proceeds from the IPO earmarked for expansion and deleveraging. The IPO offers exposure to a niche, export-oriented fashion player with capabilities in hand embroidery, accessories, and finished garments. The issue size is small, with proceeds earmarked for capacity expansion, deleveraging, and general corporate purposes. Financial metrics show improving scale and profitability in FY25, alongside a reduction in borrowings versus earlier periods.

Investors should weigh the SME liquidity profile, client concentration/exports dependency, and valuation. A third-party review notes that, despite top-line growth, bottom-line trends have been erratic, and the issue appears aggressively priced, suggesting caution for prospective subscribers. As always, align any decision with your risk tolerance and investment horizon.

References
1. [Torus Digital](https://www.torusdigital.com/toruscope/news/vashishtha-luxury-fashion-ipo-opens-key-details-investors-should-not-miss/)
2. [Yahoo Finance](https://finance.yahoo.com/news/devon-energy-unlock-value-strategic-160400835.html)