VASHISHTHA LUXURY FASHION IPO

Vashishtha Luxury Fashion Limited (VLF), a specialist in high-end apparel exports, is bringing its Initial Public Offering (IPO) to the market, offering investors an opportunity to participate in its growth journey. This IPO aims to raise capital primarily for expansion initiatives and strengthening the company’s financial position. Operating as a 100% export house, VLF has carved a niche for itself in delivering intricate hand embroidery and customized garments to esteemed international couture and prêt-à-porter brands across Europe, the UK, USA, Australia, and Turkey. As the subscription window approaches, potential investors are keenly evaluating VLF’s business model, financial outlook, and future prospects.

VLF IPO at a Glance

The Vashishtha Luxury Fashion IPO has set its price band at ₹109 to ₹111 per equity share, inviting investors to subscribe within this range. With a minimum lot size of 1200 shares, the minimum investment required for retail participants stands at ₹133,200. The total issue size is fixed at ₹8.87 crores, entirely comprising a fresh issue of shares, which means all the proceeds will directly flow into the company to fuel its strategic objectives and bolster its operational capabilities. The listing of VLF shares is scheduled for September 15, 2025, offering a defined timeline for investors.

Important Dates for Potential Investors

• Opening Date: 05 Sep 2025
• Closing Date: 10 Sep 2025
• UPI Payment Deadline: 10 Sep 2025 (5 PM)
• Allotment Announcement: 11 Sep 2025
• Refund Processing: 12 Sep 2025
• Demat Credit: 14 Sep 2025
• Stock Market Listing: 15 Sep 2025
• Mandate Validity End: 25 Sep 2025
• Anchor Investor Lock-in Release (50%): 11 Oct 2025
• Anchor Investor Lock-in Release (Remaining): 11 Dec 2025

*Dates may be revised as per official updates.

Investors interested in the Vashishtha Luxury Fashion IPO should mark these crucial dates in their calendars. The subscription window opens on September 5, 2025, and concludes on September 10, 2025, at 5 PM, which is also the deadline for UPI mandate payments. The allotment process will be finalized shortly after the closing date, with refunds initiated for non-allottees and shares credited to successful applicants’ Demat accounts by September 14, 2025. The much-anticipated listing on the stock market is slated for September 15, 2025. Anchor investors, who typically play a significant role in IPOs, will have their shares unlocked in two phases, 50% after 30 days and the remaining after 90 days from the allotment date.

About Vashishtha Luxury Fashion: A Business Insight

Founded originally as Vashishtha Exports in 2010, Vashishtha Luxury Fashion Limited was incorporated as a limited company in 2022, marking a significant step in its corporate journey. The company operates in the high-end fashion sector, specializing in the export of exquisite hand embroidery work, intricate accessories, and meticulously finished garments. VLF distinguishes itself as a 100% export house, dedicating its services to international markets, including prominent fashion hubs in Europe, the UK, USA, Australia, and Turkey.

At its core, VLF is recognized for its bespoke approach, catering specifically to couture and prêt-à-porter brands that demand customized designs in the apparel segment. This focus on tailored solutions and high-quality craftsmanship allows the company to serve a discerning clientele. With a dedicated team of 26 staff members supported by 90 skilled embroidery workers on a contractual basis, VLF combines experienced management with flexible, specialized labor to meet the dynamic demands of the luxury fashion industry. The company’s business model is built on providing unique, handcrafted elements that elevate designer collections, establishing its reputation as a reliable partner in the global luxury fashion supply chain.

IPO Fundraising Structure and Details

The Vashishtha Luxury Fashion IPO is structured as a fresh issue of ₹8.87 crores, with no Offer for Sale (OFS) component. This implies that the entire capital raised from this public offering will directly infuse into the company’s accounts, rather than being used by existing shareholders to sell their stakes. A fresh issue typically signals the company’s intent to utilize the funds for its growth and operational enhancements, reflecting a clear strategic path for expansion and financial strengthening. This structure is often viewed favorably by investors as it suggests that the company is raising capital to fuel its future development, directly benefiting its long-term prospects.

Strategic Utilization of IPO Proceeds

Vashishtha Luxury Fashion has outlined a clear plan for the utilization of the ₹8.87 crores generated through its fresh issue. A significant portion, 41% or ₹3.64 crores, is earmarked for capital expenditure, specifically for the purchase of new embroidery machines. This investment is crucial for enhancing the company’s production capacity, integrating advanced technology, and expanding its operational capabilities to meet growing international demand and secure larger orders.

Another substantial allocation, 30.32% or ₹2.69 crores, is designated for the prepayment or repayment of existing outstanding borrowings. This strategic move aims to reduce the company’s financial leverage, lower interest expenses, and improve its balance sheet strength, thereby enhancing its overall financial stability and creditworthiness. The remaining 28.63% or ₹2.54 crores will be utilized for general corporate purposes. This provides the company with necessary operational flexibility, allowing it to address various day-to-day business needs, working capital requirements, and any unforeseen contingencies that may arise, supporting sustained growth and operational efficiency.

Core Strengths Driving VLF’s Business

• **Consistency in Quality and Craftsmanship:** VLF prides itself on maintaining high standards of quality through standardized processes and the expertise of its skilled artisans. This commitment ensures reliable output that meets the stringent demands of luxury fashion brands, fostering trust and repeat business.
• **Rich Management Experience and Skilled Team:** With over a decade of industry expertise, the management team at VLF brings invaluable insights and strategic direction. Coupled with a highly skilled workforce, the company is well-equipped to navigate market complexities and sustain its competitive edge.
• **Customer-Centric Business Model:** VLF’s focus on customized designs and nurturing long-term client relationships is a cornerstone of its success. This approach allows for deep understanding of client needs, leading to tailored solutions that reinforce loyalty and ensure sustained partnerships in the high-fashion segment.
• **Smooth Operations with Integrated Production Facilities:** The company benefits from integrated production facilities and efficient workflow management. This operational synergy ensures seamless execution from design conceptualization to final product delivery, contributing to timely fulfillment and quality control.
• **Scalable Business Model:** VLF possesses the inherent capacity to expand its production and serve a growing international demand. This scalability is vital for capitalizing on new opportunities in the luxury fashion export market and accommodating increased order volumes without compromising quality.

Key Considerations and Potential Investment Risks

• **Seasonality of Business Operations:** The luxury fashion industry is often subject to seasonal fluctuations, with lower revenues during certain festive periods. This seasonality can adversely affect VLF’s operational cash flows and profitability, requiring careful financial planning and inventory management.
• **Heavy Dependence on Few Customers:** A significant portion of VLF’s revenue might be derived from a limited number of major clients. This concentration risk makes the company vulnerable to the loss of a key customer or a reduction in orders from them, potentially impacting its financial performance.
• **Geographic Concentration Risk:** VLF’s revenue is primarily generated from specific international markets. Any adverse economic conditions, political instability, or changes in trade policies in these concentrated countries could negatively affect the company’s business stability and export volumes.
• **Outstanding Unsecured Loans:** As of March 2025, the company had outstanding unsecured loans amounting to ₹27.99 lakhs. While these loans are part of the company’s financial structure, they carry the risk of being recalled by lenders at any time, which could put pressure on VLF’s liquidity.
• **Currency Fluctuation Risks:** Being a 100% export-oriented entity, VLF is inherently exposed to foreign currency exchange rate fluctuations. Adverse movements in currency rates between the Indian Rupee and currencies of its international clients can impact the company’s revenue and profitability margins.

Understanding VLF IPO Subscription Trends

The subscription figures for Vashishtha Luxury Fashion IPO provide valuable insights into investor interest across different categories. As of 5:00 PM on September 10, 2025, the final day of subscription, the IPO witnessed an overall subscription of 2.18 times.

Qualified Institutional Buyers (QIBs) showed moderate interest, subscribing 1.27 times their reserved portion, indicating a cautious yet present institutional participation. Non-Institutional Investors (NIIs), often referred to as high net-worth individuals (HNIs), displayed stronger enthusiasm, oversubscribing their segment by 2.47 times. Retail Individual Investors (RIIs), forming the largest segment of the IPO, subscribed 2.16 times, suggesting a fair level of interest from individual investors. The overall subscription rate of 2.18 times reflects a balanced demand across all categories, providing a clearer picture of market sentiment towards Vashishtha Luxury Fashion. Investors should note that while unofficial Grey Market Premium (GMP) figures may circulate, exchange-published subscription data remains the most reliable indicator of an IPO’s demand and market reception.

*GMP figures are unofficial and may vary; exchange data is more reliable.

Participating in the VLF IPO

The Vashishtha Luxury Fashion IPO presents a unique opportunity for investors to engage with a specialized player in the luxury fashion export segment. Potential investors should carefully review the company’s prospectus, analyze its financial health, business model, and the outlined risks and strengths before making an investment decision. Understanding the industry landscape and VLF’s competitive position is key to assessing its long-term growth potential.

Investors can participate in this IPO via the official Dhan Kirti IPO platform before the subscription closes on September 10, 2025. It is advisable to apply early to avoid any last-minute technical issues. As with any investment, thorough due diligence and alignment with personal financial goals are recommended.