Rajnandini Fashion India Lists at ₹63, Down 0.79%

Rajnandini Fashion India Ltd, incorporated in 2010 as a designer, manufacturer, and seller of women's apparel across ethnic and casual wear categories through both online and offline channels with ethnic wear range including sarees, kurtis, kurta sets, and unstitched dress materials and casual wear covering tops, tunics, dresses, and maternity gowns sold under four brands Merira, Monira, Roly Poly, and Rajnandini through B2C segment via Amazon, Flipkart, Myntra, Ajio, Nykaa, and B2B segment supplying to wholesalers and retailers, made a flat debut on BSE SME on Wednesday, June 3, 2026. The Rajnandini Fashion share price opened flat at ₹63.00 at issue price, dipped to ₹60.15 (down 4.52%) before trading around ₹62.50 (down 0.79%).

Rajnandini Fashion Listing Details

Rajnandini Fashion launched its fresh issue IPO at ₹59-63 per share with minimum investment of 4,000 shares costing ₹2,52,000 raising ₹18.21 crore including ₹5.15 crore from anchor investors. The IPO received phenomenal response with massive subscription of 203.74 times - retail investors at 168.63 times, NII exceptionally strong at 393.63 times, QIB at 122.04 times, total applications of 53,518.

First-Day Trading Performance

Listing Price: Rajnandini Fashion stock price opened flat at ₹63.00 at issue price, dipped to low of ₹60.15 (down 4.52%), recovered to ₹62.50 (down 0.79%), with VWAP at ₹62.94. The flat listing disappointed IPO investors despite 204x subscription with turnover of ₹8.37 crore, traded volume of 13.30 lakh shares, delivery of 100%, and market capitalisation of ₹65.33 crore unchanged from pre-IPO market cap.

Growth Drivers and Challenges

Growth Drivers:

Omnichannel Presence: Strong B2C distribution through major e-commerce platforms processing 22,90,998 orders in December 2025 alongside B2B segment serving wholesalers and retailers.

Multi-Brand Portfolio: Four brands (Merira, Monira, Roly Poly, Rajnandini) catering to different price segments (₹250-₹2,000) across ethnic and casual women's wear categories enabling broad market coverage.

In-house Manufacturing: Two manufacturing units in Surat (2023, 90 sewing machines) and Jaipur (2024, 50 sewing machines) with 146 employees enabling quality control and margin improvement.

Challenges:

Inconsistent Revenue: Analyst warns company posted inconsistency in top lines between FY23-FY25 with revenue of ₹28.02 crore (FY23), declining to ₹23.60 crore (FY24), then recovering to ₹31.27 crore (FY25).

Sudden Profit Spurt: Bottom line surge from ₹0.37 crore (FY23) to ₹5.06 crore (FY25) raises eyebrows and concern over sustainability in highly competitive women's apparel segment.

Fully Priced Valuation: Issue appears fully priced with small equity base post-IPO indicating longer gestation period for mainboard migration.

Utilisation of IPO Proceeds

Working Capital: ₹7.00 crore for working capital requirements of inventory-intensive apparel business.

Debt Repayment: ₹5.50 crore for repayment of a portion of certain borrowings.

New Manufacturing Facility: ₹1.35 crore for capital expenditure towards setting up new manufacturing facility.

General Corporate Purposes: ₹1.28 crore.

Financial Performance

Revenue: ₹31.22 crore for 9 months ended December 2025 (almost equal to full FY25), ₹31.27 crore for FY25, recovery from ₹23.60 crore in FY24 and decline from ₹28.02 crore in FY23.

Net Profit: ₹5.14 crore for 9 months FY26 (already exceeding full FY25), ₹5.06 crore in FY25, growth from ₹2.29 crore in FY24 and ₹0.37 crore in FY23, with post-IPO EPS of ₹6.61 and P/E of 9.53x. Investors tracking Rajnandini Fashion share price should note PAT margin of 16.99%, EBITDA margin of 23.49%, and ROE of 43.32% despite flat listing disappointing 53,518 applicants who subscribed 204x in highly competitive women's ethnic apparel segment.