Vashishtha Luxury Fashion Launches Rs 8.87 Crore IPO Amid Muted Market Response
Vashishtha Luxury Fashion, a Mumbai-based export house, has opened its IPO for subscription. The Rs 8.87 crore issue offers 7.99 lakh fresh equity shares at a price band of Rs 109-111 per share. The IPO proceeds will be used to purchase embroidery machines and repay debt. The company, known for high-fashion hand embroidery and garments, exports to several international markets. Recent financial results show a 46% increase in revenue to Rs 10.88 crore and a 346% jump in Profit After Tax to Rs 1.42 crore. The IPO opened with a 0% grey market premium, indicating muted listing expectations.
*this image is generated using AI for illustrative purposes only.
Vashishtha Luxury Fashion, a Mumbai-based export house known for its high-fashion hand embroidery and garments, has opened its Initial Public Offering (IPO) for subscription. The book-built issue, valued at Rs 8.87 crore, comes with a price band of Rs 109-111 per share.
IPO Details
- Issue Size: 7.99 lakh fresh equity shares
- Price Band: Rs 109-111 per share
- Lot Size: 1,200 shares
- Subscription Period: Open until September 10
Fund Utilization
The company plans to utilize the IPO proceeds primarily for:
- Purchasing advanced embroidery machines: Rs 3.64 crore
- Debt repayment: Rs 2.69 crore
Company Overview
Incorporated in 2010, Vashishtha Luxury Fashion has established itself as an export-oriented business. The company's reach extends to several international markets, including:
- Europe
- United Kingdom
- United States
- Australia
- Turkey
These exports are facilitated through its subsidiary, Vashishtha Embroidery Private Limited.
Financial Performance
The company has shown significant growth in its recent financial results:
| Metric | Performance |
|---|---|
| Revenue | Rs 10.88 crore |
| Profit After Tax | Rs 1.42 crore |
The revenue increased by 46%, while the Profit After Tax jumped by 346% from Rs 0.32 crore in the previous year.
Market Response
Despite the company's growth, the IPO opened with a grey market premium of 0%, suggesting muted listing expectations among investors.
The Vashishtha Luxury Fashion IPO presents an opportunity for investors interested in the luxury fashion export sector. However, potential subscribers should carefully consider the company's financials, growth prospects, and the overall market conditions before making a decision.
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