IPO Details
RHP/DRHPIssue Date
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IPO Size
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Schedule of Vashishtha Luxury Fashion IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Vashishtha Luxury Fashion IPO
The IPO of Vashishtha Luxury Fashion Ltd comprises a fresh issue of up to 8,00,000 equity shares. There’s no offer for sale in this IPO which is a 100% book-built issue. The price band of the IPO is TBA and the lot size is TBA.
The IPO opens on TBA and closes on TBA. The listing of shares will take place on TBA. The credit of shares to the demat account will take place on TBA. The basis of allotment will take place on TBA. The initiation of refunds will take place on TBA.
Objectives of Vashishtha Luxury Fashion IPO
- Funding capital expenditure requirement of the company towards purchase of embroidery machines for expansion
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company
- General Corporate Purposes
Vashishtha Luxury Fashion IPO Valuation
Vashishtha Luxury Fashion IPO Share Offer and Subscription Details
| Investor | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net issue |
Non-Institutional Applicants | Not less than 15% of the net issue |
Retail Individual Investors | Not less than 35% of the net issue |
Industry Outlook
India is the world’s second-largest producer of textiles and garments. It is also the sixth-largest exporter of textiles spanning apparel, home and technical products. India has a 4.6% share of the global trade in textiles and apparel. The market for Indian textiles and apparel is projected to grow at a 10% CAGR to reach US$ 350 billion by 2030, with exports expected to reach US$100 billion.
Company Information
Vashishtha Luxury Fashion Ltd is engaged in the business of exporting high fashion hand embroidery work, accessories and finished garments. It’s a reliable name considering existence and maintaining relationships for over a decade amongst international designers, fashion houses and boutiques. The company caters to various brands and fashion houses across Europe, UK, USA, Australia, European countries and Turkey. Further, it also provides services in customised designs in the apparel segment. The company is a 100% Export House. Since inception, it has been providing services to many Couture (the design and manufacture of fashionable clothes to a client's specific requirements and measurements) and prêt-à-porter (a French term that refers to clothing that is mass-produced in standardized sizes and sold in finished condition) brands from Europe, UK, USA, Australia, European countries & Turkey.
Strengths of Vashishtha Luxury Fashion
Consistency in Quality
Vashishtha Luxury Fashion Ltd adheres to strict quality standards in its manufacturing unit to ensure that its products meet customer requirements. These standards maintain quality consistency by employing trained staff and providing adequate premises and equipment for manufacturing. The company works closely with its customers and has the capability to understand and convert their ideas into creations.
Its in-house design team continuously explores new techniques of embellishment and develops embroidery collections each season to present to its clients globally.
Customer Centric Business Model
The company focuses on achieving customer satisfaction. Understanding the consumer is a key skill required for success in this business. Its progress will largely depend on the company’s ability to address and exceed customer expectations.
It regularly assesses changing customer preferences and redesign its products by exploring new trends. It maintains a library of thousands of designs exported throughout the year. To run a successful export business, it aims to offer new designs to its clients whenever they require garments or accessories.
Smooth Flow of Operations
Over the years, the company has developed a broad client base through a relationship-focused approach. Its existing relationships have led to repeat business, helping it maintain long-term working partnerships with customers and strengthen its customer retention strategy. It believes these relationships provide a competitive advantage in attracting new clients and growing its business.
Scalable Business Model
The company’s business model is order driven and comprises optimal utilisation of its in-house processing facilities, and achieving consequent economies of scale. It believes that this business model has proved successful and scalable for it in the last few financial years.
The business scale generation is basically due to the potential development and possibilities of new markets both international and domestic, by adopting aggressive marketing of the product, innovation in the product range and by maintaining the consistent quality and keeping up the trust of its clients.
Risks of Vashishtha Fashion
- Limited Operating History
The company has a very limited operating history from which investors can evaluate its business, future prospects and viability. Investors must consider its business and prospects in light of the risks and difficulties it faces as an early-stage company with a limited operating history and should not rely on its past results as an indication of its future performance.
- Requirement for Approvals and Licenses
The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business. The failure to obtain, retain and renew such approvals and licenses or comply with such rules and regulations may adversely affect its operations.
- Subject to Seasonality
Seasonal variations in sales volumes have a major impact on its business, resulting in considerable revenue fluctuations over the course of fiscal quarters. Demand usually spikes ahead of major festivals and events outside of India, as well as before and during winter and event-based shows. Several hazards are introduced by this seasonality, such as revenue fluctuation that makes financial planning more difficult and strains cash flow during off-peak times.
Vashishtha Luxury Fashion Financials
IPO Registrar and Book Running Lead Manager
IPO Registrar : Bigshare Services Pvt Ltd
Book Running Lead Manager : Expert Global Consultants Pvt Ltd
Business Model
Vashistha Luxury Fashion Ltd exports high fashion hand embroidery work, accessories and finished garments. It’s a 100% export house. Since inception, it has provided services to many couture and prêt-à-porter brands from Europe, UK, USA, Australia, European countries and Turkey.
Company Growth Trajectory
The company’s revenue from operations grew from ₹4.1019 crores in FY 22 to ₹7.1362 crores in FY 24, while its total income increased from ₹4.2421 crores in FY 22 to ₹7.4498 crores in FY 24. Consistency in quality coupled with a skilled team has aided in the company’s growth over the years.
Market Position
Vashishtha Luxury Fashion Ltd is a young organisation with a strong team considering the diverse background and experience. Since 2010, the team of Vashishtha have indulged in working closely with clients and are capable of understanding and converting their ideas into creations. The in-house creative design team is always experimenting with new techniques of embellishment and creates unique embroidery collections every season to showcase to all potential clients across Europe, UK, USA, Australia, European countries and Turkey.
Vashistha Luxury Fashion Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Revenue (in ₹ crores) | 7.44 | 6.86 | 4.24 |
Profit Before Tax (in ₹ crores) | 0.53 | 1.48 | 0.11 |
Profit After Tax (in ₹ crores) | 0.31 | 1.04 | 0.047 |
EPS in ₹ | 2.87 | 9.41 | 0.43 |
Vashishtha Luxury Fashion Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 0.53 | 1.48 | 0.11 |
Net Cash from Operating Activities (in ₹ crores) | 0.40 | 1.23 | -0.75 |
Net Cash Flow from/(Used in) Investing Activities (in ₹ crores) | 0.04 | 0.27 | -0.20 |
Net Cash Flow from/(Used in) Financing Activities (in ₹ crores) | -0.43 | -1.52 | 0.96 |
Cash and Cash Equivalents at the End of the Year (in ₹ crores) | 0.01 | 0.00 | 0.01 |
How to Check Vashishtha Luxury Fashion IPO?
Visit the Registrar’s Website
- Visit the official website of Bigshare Services Pvt Ltd
- Choose IPO Allotment Status from ‘Services’
- Click on any one of the servers
- Choose ‘Company Name’ from dropdown
- Enter either your application number, CAF number or beneficiary ID
- Enter captcha and click on ‘Submit’ to know the status
Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number
- Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
How to Apply for Vashishtha Luxury Fashion IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Vashishtha Luxury Fashion IPO FAQs
Where can I read more about Vashishtha Luxury Fashion business?
You can read more about Vashishtha Luxury Fashion and its IPO from the company’s red herring prospectus (RHP) here.
What is the Vashishtha Luxury Fashion IPO?
The IPO of Vashishtha Luxury Fashion Ltd comprises up to 8,00,000 equity shares. There’s no offer for sale in the IPO.
When will the IPO of Vashishtha Luxury Fashion go live?
The exact dates of the IPO are yet to be announced.
