IPO Overview
Founded in 2010, Rajnandini Fashion India Limited is engaged in the designing, manufacturing, and marketing of women’s apparel products. The company mainly focuses on ethnic wear, western wear, maternity wear, and fashion accessories under its own brands, operating through both online and offline channels with a strong presence on leading e-commerce platforms across India. The company sells products under four brands — Merira, Monira, Roly Poly, and Rajnandini — catering to different price segments. Product prices generally range between ₹250 and ₹2,000 depending on the category.
Transitioning from a traditional outsourced job-work model to a vertically integrated, in-house manufacturing setup, the company is currently demonstrating strong margin improvements. The company is now launching its SME IPO on the BSE SME platform. The IPO consists entirely of a fresh issue of 28.90 lakh equity shares, aggregating to ₹18.21 crore. The IPO opens for subscription on 26 May 2026 and closes on 29 May 2026, with shares proposed to be listed on BSE SME on 03 June 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | BSE SME |
| Anchor Investor Date | 25 May 2026 |
| IPO Open Date | 26 May 2026 |
| IPO Close Date | 29 May 2026 |
| Allotment Date | 01 June 2026 (Expected) |
| Credit to Demat | 02 June 2026 |
| Listing Date | 03 June 2026 (Tentative) |
| Price Band | ₹59 – ₹63 per share |
| Face Value | ₹10 per share |
| Lot Size | 2,000 shares |
| Minimum Investment (Retail) | ₹2,52,000 (2 lots = 4,000 shares) |
| Minimum Investment (HNI) | ₹3,78,000 (3 lots = 6,000 shares) |
| Issue Size | ₹18.21 crore |
| Fresh Issue | 28,90,000 shares (₹18.21 crore) |
| Offer For Sale (OFS) | Nil |
Note: There is no Offer for Sale component. The promoters are not selling a single share — every rupee raised goes directly into the business.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% |
| Non-Institutional Investors (NII/HNI) | ~15% |
| Retail Individual Investors (RII) | ~35% |
| Market Maker | Reserved Portion |
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The promoter — Vikesh Sushil Lunawat — who holds 97.70% pre-issue stake, is not selling a single share. All proceeds go entirely into the company.
Objects of the Issue (Fund Utilization)
With total IPO proceeds of ₹18.21 crore, approximately ₹9 crore goes towards working capital, ₹5.5 crore towards debt repayment, and the remaining amount towards new manufacturing unit setup and general corporate purposes.
- Working capital requirements — ~₹9 crore
- Repayment / prepayment of existing borrowings — ~₹5.5 crore
- Capital expenditure for new manufacturing unit — remaining proceeds
- General corporate purposes
Lead Managers & Registrar
- Book Running Lead Manager: Seren Capital Pvt. Ltd.
- Registrar to the Issue: Bigshare Services Pvt. Ltd.
- Market Maker: Giriraj Stock Broking Pvt. Ltd.
Promoters & Management
The promoters of the company are Vikesh Sushil Lunawat, Sushil Kumar Lunawat, and Priyanka Chopra. The promoter group brings over a decade of experience in women’s fashion, e-commerce distribution, and apparel manufacturing. The promoter’s continued full stake post-IPO signals strong conviction in the company’s long-term growth story.
Company Details
Incorporated in 2010, Rajnandini Fashion designs, manufactures, and sells women’s apparel across ethnic and casual wear categories through both online and offline channels. Its ethnic wear range includes sarees, kurtis, kurta sets, and unstitched dress materials, while the casual wear range covers tops, tunics, dresses, and maternity gowns made from fabrics such as cotton, rayon, silk, and poly-cotton.
Business Models:
- B2C: Direct sales through its own website and major e-commerce marketplaces including Amazon, Flipkart, Myntra, Ajio, and Nykaa. The company processed around 22.91 lakh orders as of December 2025.
- B2B: Supply of fabrics and ready-made garments to wholesalers and retailers
Brands:
- Merira, Monira, Roly Poly, Rajnandini — across different price segments (₹250 – ₹2,000)
Manufacturing Facilities:
- Surat manufacturing unit established in 2023 with 90 sewing machines; Jaipur manufacturing unit set up in 2024 with 50 sewing machines. As of April 30, 2026, the company employed 146 permanent employees.
- Combined manufacturing capacity of approximately 2,729 garments per day (71,014 monthly) across both facilities.
Key Capabilities:
- Transitioned from outsourced job-work to vertically integrated in-house manufacturing, equipped with 140+ industrial sewing machines, resulting in strong margin expansion.
- Multi-brand, multi-category product portfolio targeting diverse customer segments
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY24 | ₹23.60 | ₹2.29 |
| FY25 | ₹31.27 | ₹5.05 |
Key Financial Metrics
- Revenue grew from ₹23.60 crore in FY24 to ₹31.27 crore in FY25 — growth of ~33% YoY. PAT more than doubled from ₹2.29 crore to ₹5.05 crore — growth of ~121% YoY.
- GMP as of 26 May 2026 stood at ₹6, indicating an expected listing gain of ~9.52% over the issue price of ₹63.
- Zero OFS — entire capital raised flows into business operations
- Relatively modest valuation given the growth trajectory
Company Strengths
- Strong improvement in profitability and operating performance during FY25, with healthy return ratios and expanding operating margins.
- Multi-brand strategy across price segments (₹250–₹2,000) gives the company broad market reach
- Structural tailwinds in ethnic wear — rising incomes, young population, strong festive and wedding culture, and growing e-commerce penetration in Tier 2 and Tier 3 cities all support long-term demand.
- Strong marketplace presence across all major platforms — Amazon, Flipkart, Myntra, Ajio, Nykaa
- Marketplace-first strategy before investing in manufacturing proves demand-driven growth — a prudent capital allocation approach. New manufacturing unit at Jaipur expected to go live commercially by August 2026.
- No promoter exit — 100% of IPO proceeds go into the company, showing promoter confidence
Key Risks & Challenges
- High platform dependency — a significant portion of B2C revenue is derived from third-party marketplaces like Amazon, Myntra, and Flipkart. Any adverse changes in platform algorithms, higher commissions, or seller policy shifts could directly hurt margins and sales.
- Very high B2C sales return rate — averaging ~34% over three years (32.90% in 9M FY26, representing ₹7.36 crore). This inflates reverse logistics costs, increases inventory obsolescence, and drags on operating margins.
- SME IPO liquidity risk — BSE SME platform has limited secondary market trading volumes
- Highly competitive women’s apparel market with numerous organized and unorganized players
- Fashion and consumer demand sensitivity — seasonal trends, consumer preferences, and festival cycles can cause revenue volatility
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
