Vashishtha Luxury Fashion Makes Modest Market Debut with 7% GMP
Vashishtha Luxury Fashion, a Mumbai-based luxury embroidery and garment exporter, is preparing for its market debut after raising Rs 8.87 crore through an IPO. The company issued 7.99 lakh shares priced between Rs 109-111 per share, with an overall subscription of 2.18 times. The IPO received moderate response across investor categories. Vashishtha specializes in hand embroidery, accessories, and customized apparel, exporting to luxury brands globally. The company reported significant financial growth with revenue of Rs 10.88 crore and net profit of Rs 1.42 crore. At the IPO price, the company is valued at Rs 26.16 crore with a P/E ratio of 18.4x. The IPO proceeds will be used for purchasing embroidery machines, debt repayment, and general corporate purposes.
*this image is generated using AI for illustrative purposes only.
Vashishtha Luxury Fashion, a Mumbai-based luxury embroidery and garment exporter, is set to make its market debut following its Initial Public Offering (IPO) that raised Rs 8.87 crore. The company's shares are expected to list with a grey market premium (GMP) of around 7%, indicating modest gains for investors on the first day of trading.
IPO Details and Subscription
The IPO saw the company issue 7.99 lakh shares priced in the range of Rs 109-111 per share. The public issue received a moderate response from investors:
- Overall subscription: 2.18 times
- Retail investors' portion: 2.16 times
- Qualified institutional buyers' portion: 1.27 times
Company Profile
Vashishtha Luxury Fashion specializes in:
- Hand embroidery
- Accessories
- Customized apparel
The company exports its products to luxury brands across various international markets, including Europe, UK, US, Australia, and Turkey. With a lean operational structure, the company functions with a workforce of 21 employees.
Financial Performance
The company has shown significant growth in its recent financial results:
| Metric | Amount | YoY Growth |
|---|---|---|
| Revenue | 10.88 | 46.00 |
| Net Profit | 1.42 | 346.00 |
All figures in Rs crore
Valuation and IPO Proceeds
At the IPO price of Rs 111 per share, Vashishtha Luxury Fashion is valued at a market capitalization of Rs 26.16 crore, with a price-to-earnings (P/E) multiple of 18.4x.
The company plans to utilize the IPO proceeds for:
- Purchase of embroidery machines
- Debt repayment
- General corporate purposes
Market Expectations
With a grey market premium of around 7%, investors can expect modest listing gains. However, it's important to note that grey market premiums are unofficial and subject to change.
The moderate subscription levels, particularly the limited participation from qualified institutional buyers, suggest cautious sentiment among investors. The company's strong financial growth and niche position in the luxury fashion export market could be factors influencing investor interest.
As Vashishtha Luxury Fashion makes its market debut, investors and market watchers will be keen to observe how the stock performs in its initial trading sessions and whether it can build on its pre-listing momentum.
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