Rajnandini Fashion India IPO Review

Live status (30 Jun 2026): A cautionary SME story. The IPO was subscribed a huge ~189x, yet it listed flat at ₹63 on 3 June 2026 no listing gain and has since slid to around ₹47, roughly 25% below the issue price in under a month. Massive demand, flat debut, and a sharp fall after: a reminder that heavy SME oversubscription doesn't guarantee returns.

About the Company

Scroll through Amazon, Flipkart, Myntra or Ajio for a kurti or a saree, and some of those listings come from a small Surat based maker you've probably never heard of. Rajnandini Fashion is one of those behind the scenes apparel companies, selling women's ethnic and casual wear under its own brands.

Set up in 2010, the company designs, manufactures and sells women's clothing sarees, kurtis, kurta sets and unstitched dress materials on the ethnic side, plus tops, tunics, dresses and maternity gowns on the casual side. It sells under four brands Merira, Monira, Roly Poly and Rajnandini at prices from about ₹250 to ₹2,000.

It runs two arms: a B2C business selling directly through its website and the big online marketplaces, and a B2B business supplying fabric and ready-made garments to wholesalers and retailers. It makes its own products at two units, in Surat and Jaipur, with around 146 employees. Track its GMP, subscription and listing data on the IPO GMP Live homepage.

Financial Snapshot

On the face of it, the numbers look decent. Revenue grew from ₹24 crore in FY24 to ₹31 crore in FY25, and the company has stayed comfortably profitable net profit rose from ₹2.29 crore in FY24 to ₹5.06 crore in FY25, with ₹5.14 crore already in the nine months to December 2025. Margins are healthy for a small apparel maker, with a PAT margin near 17% and return on equity above 40%.

At the ₹63 issue price, that put the company at a market cap of about ₹65 crore and a P/E of roughly 9.5 times genuinely cheap, not the stretched valuation many SME IPOs carry.

So why has the stock fallen to ₹47? Two things. First, the revenue has gone almost flat ₹31 crore in FY25 and the same nine month run rate into FY26 so the growth isn't accelerating. Second, and more important, this was an SME issue riding pure hype: subscribed around 189 times, it listed flat at ₹63 and then drifted lower as the speculative demand evaporated. The business is fine and cheap; the IPO frenzy simply ran ahead of it, and the price is now correcting back toward what the small, flat growth business is worth.

Strengths

• It's cheap and profitable. At the issue price the company traded near 9.5 times earnings with a PAT margin around 17% and ROE above 40% solid, real profitability on a small base, and a far more reasonable valuation than most SME IPOs.
• It rides the online apparel wave. Selling through Amazon, Flipkart, Myntra, Ajio and Nykaa gives Rajnandini broad reach without owning stores, and its four-brand line-up spans price points from ₹250 to ₹2,000.
• It controls its own manufacturing. Two in house units in Surat and Jaipur, with 140 sewing machines between them, give the company control over quality and costs rather than relying entirely on third parties.
• The IPO funds real needs. The fresh proceeds go toward a new manufacturing facility, repaying debt and working capital practical uses for a growing small manufacturer rather than just an exit for owners.

Risks

• The stock has already fallen below issue price. Despite a 189x subscription, it listed flat at ₹63 and slid to around ₹47 within weeks about 25% down. Heavy oversubscription clearly didn't translate into lasting value here.
• Revenue has gone flat. Sales stalled at roughly ₹31 crore across FY25 and the nine months of FY26. For a company pitched as a growth story, a flat top line is a real concern.
• It's tiny and illiquid. With a market cap near ₹65 crore on the BSE SME platform and a ₹2,000-share lot, this is a micro cap that can swing sharply on small trades, and exiting in a hurry can be hard.
• It's a low-margin, crowded business. Women's apparel is intensely competitive, dependent on the big e commerce platforms for reach, and exposed to fashion cycles and fabric cost swings none of which favour a small player.

Should You Buy, Hold, or Sell?

It's listed, and it's been a disappointment — flat at ₹63, now around ₹47. This is a call on a small, cheap, but flat-growth apparel maker after the IPO hype has faded.

Conservative investors — avoid. SME micro caps with flat revenue and thin liquidity aren't where steady money belongs, however cheap the valuation looks.

Moderate investors — also skip for now. If you want to track it, wait for a few quarters showing revenue actually growing again before considering it.

Aggressive investors — only with money you can afford to lock away. At ~9x earnings it's not expensive, but a flat growth SME that's already fallen 25% needs genuine business improvement, not just a cheap label, to recover.

Honest take: a cheap, profitable little apparel company that got swept up in SME mania the frenzy faded fast, and until revenue grows again, there's little reason to chase it.

IPO Objects of the Issue

This was a 100% fresh issue of ₹17.29 crore, with no offer-for-sale, so all proceeds go to the company.

Contact Details

Rajnandini Fashion India Ltd. Surat, Gujarat (manufacturing units in Surat and Jaipur) Brands: Merira, Monira, Roly Poly, Rajnandini

IPO Registrar — Bigshare Services Pvt. Ltd. 📞 +91-22-6263 8200 📧 ipo@bigshareonline.com 🌐 www.bigshareonline.com

Lead Manager: Seren Capital Pvt. Ltd. · Market Maker: Giriraj Stock Broking Pvt. Ltd.

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This page is not investment advice. GMP is indicative only. Please consult a SEBI-registered financial advisor before investing.