Riyaasat Lifestyle Lists at ₹84.80, Down 20%

Riyaasat Lifestyle Ltd, incorporated in October 2021 as an ethnic wear company for men and women offering collection of Kurta, Payjama, Sherwani, Jodhpuri, Lehanga, and Gown designed with fine materials for comfort and durability operating 6 Exclusive Brand Outlets (EBOs) across Gujarat and Maharashtra ranging from 1,790 to 9,419 sq ft providing premium retail experience with sales through website www.riyaasat.in and online marketplaces, made a weak debut on BSE SME on Wednesday, July 1, 2026. The Riyaasat Lifestyle share price opened at ₹84.80 representing steep discount of 20.00% from issue price of ₹106.00, stuck at lower circuit throughout the session.

Riyaasat Lifestyle Listing Details

Riyaasat Lifestyle launched its fresh issue IPO at ₹100-106 per share with minimum investment of 2,400 shares costing ₹2,54,400 raising ₹30.20 crore. The IPO was extended to 6 days (June 18-25) due to poor response, finally achieving subscription of just 1.32 times - QIB at 20.33 times saving the issue, retail severely undersubscribed at 0.44 times, NII extremely weak at 0.09 times.

First-Day Trading Performance

Listing Price: Riyaasat Lifestyle stock price opened at ₹84.80 representing steep discount of 20.00% from issue price, stuck at lower circuit throughout the session with no recovery, VWAP at ₹84.80. The weak listing resulted in significant losses for IPO investors with extremely low turnover of ₹22.38 lakh, traded volume of just 0.26 lakh shares, delivery of 100%, and market capitalisation of ₹91.11 crore against pre-IPO market cap of ₹113.89 crore.

Growth Drivers and Challenges

Growth Drivers:

Expansion Plans: IPO proceeds of ₹12.47 crore dedicated to setting up 4 new showrooms expanding retail footprint beyond current 6 stores to capture growing ethnic wear market demand.

Consistent Revenue Growth: Revenue growing from ₹20.94 crore in FY23 to ₹25.19 crore in FY25 to ₹28.13 crore for 10M FY26 with EBITDA margin of 26.13% and PAT margin of 15.40%.

Challenges:

Severely Undersubscribed by Retail/NII: Retail at just 0.44x and NII at 0.09x with only 322 total applications indicating extremely weak investor demand; IPO extended to 6 days due to poor response.

High Leverage: Debt/equity surged to 2.24 with total borrowings of ₹38.97 crore as of January 2026 against net worth of ₹17.39 crore, a significant increase from 0.68x in March 2025.

Utilisation of IPO Proceeds

Capital Expenditure: ₹12.47 crore for setting up 4 new showrooms to expand retail presence beyond current 6 EBOs.

Working Capital: ₹9.50 crore for funding working capital requirements.

General Corporate Purposes: Residual amounts.

Financial Performance

Revenue: ₹28.13 crore for 10 months ended January 2026 (112% of full FY25), ₹25.19 crore for FY25, growth from ₹23.34 crore in FY24 and ₹20.94 crore in FY23.

Net Profit: ₹4.29 crore for 10 months FY26 (88% of full FY25), ₹4.87 crore in FY25, growth from ₹4.08 crore in FY24 and ₹1.32 crore in FY23, with post-IPO EPS of ₹4.79 and P/E of 22.12x. Investors tracking Riyaasat Lifestyle share price should note NII severely undersubscribed at 0.09x with only 322 applications, IPO extended to 6 days due to poor response, debt/equity surge to 2.24 from 0.68 within 10 months, and 20% listing day loss at lower circuit with no buyers in the market.