Rajnandini Fashion India IPO

Rajnandini Fashion India IPO Business Overview

Rajnandini Fashion India Limited is a women’s apparel company engaged in the design, manufacturing and sale of ethnic and casual wear products. The company sells through both online and offline channels, covering B2C and B2B customers.

The company’s ethnic wear portfolio includes unstitched dress materials, sarees, kurtis and kurta sets, while its casual wear portfolio includes tops, tunics and maternity gowns made from fabrics such as poly-cotton, rayon, silk, cotton and other fabrics.

The company sells products under four brands:

Rajnandini Fashion India is coming with a BSE SME IPO through a 100% book-built issue. The IPO is a complete Fresh Issue of up to 28,90,000 equity shares with no Offer for Sale. The shares are proposed to be listed on the SME Platform of BSE.

Company Overview

Rajnandini Fashion India Limited was originally incorporated as Vyoum Trade Link Private Limited on October 11, 2010. Later, its name was changed to Jainam Overseas Private Limited in 2012. The company was renamed Rajnandini Fashion India Private Limited in July 2024 and was later converted into a public limited company as Rajnandini Fashion India Limited in January 2025.

Bidding will not be conducted on May 28, 2026 due to a public holiday.

What Does Rajnandini Fashion India Do?

Rajnandini Fashion India designs, manufactures, trades and sells women’s apparel.

In simple words, the company makes and sells women’s ethnic and casual wear products through e-commerce platforms, its own website and B2B customers.

Products and Services

1. Ethnic Wear

The company sells ethnic wear products such as sarees, kurtis, kurta sets, unstitched dress materials and Patiala suits. Ethnic wear is influenced by festivals, family functions, traditional wear, regional preferences and price affordability.

2. Casual Wear

The company sells casual wear products such as tops, tunics, dresses, Co-Ord sets, maternity gowns and plus-size apparel. This helps the company serve customers who prefer daily wear, online fashion and affordable casual clothing.

3. Maternity Wear

Maternity wear is one of the company’s online product categories. The RHP mentions maternity wear price range of around Rs. 600 to Rs. 799 for domestic online products.

4. Fabric and Apparel Trading

The company also undertakes trading of fabrics and apparel products under its B2B segment.

Sales Channels

B2C Sales

In the B2C segment, the company sells directly to individual customers through third-party e-commerce platforms and its own website. The company sells through platforms including Amazon, Flipkart, Myntra, Ajio, Nykaa and Shopsy, along with its own website.

B2B Sales

In the B2B segment, the company supplies apparel products to wholesalers and retailers. It also undertakes bulk trading of fabrics, including printed design fabrics and dyed plain fabrics.

Product Price Range

The RHP gives the general domestic online price range for the company’s products:

Manufacturing Facilities

Rajnandini Fashion India has two existing manufacturing units:

The company also proposes to set up a new manufacturing facility at 2nd Floor, Plot No. 4, 5, 6 and 7, Krishna Park, Saroli, Saniyahemad, Devadh, Surat using part of the IPO proceeds.

Capacity Utilisation

Business Model

Rajnandini Fashion India follows a women’s apparel manufacturing, trading and online retail model.

Revenue Model

Rajnandini Fashion India earns revenue from sale of manufactured apparel, traded apparel, fabrics, B2C online sales, B2B sales and limited export sales.

• Women’s apparel demand
• Online platform visibility
• Fashion trends and product pricing
• Fabric cost and manufacturing efficiency
• B2C return percentage
• B2B customer orders
• E-commerce platform policies
• Working capital availability
• Inventory management
• Seasonal and festival demand

Objects of the IPO

The IPO is a complete Fresh Issue of up to 28,90,000 equity shares of face value Rs. 10 each. There is no Offer for Sale.

The RHP states that the company has not appointed a monitoring agency because appointment is required only for issue size above Rs. 5,000 lakhs. The Audit Committee will monitor utilisation of proceeds.

Financial Highlights

The RHP’s peer comparison section shows Rajnandini Fashion India’s FY 2025 EPS at Rs. 6.77, RoNW at 54.41%, book value at Rs. 12.44, and total revenue at Rs. 3,068.95 lakhs.

Cash Flow Position

Working Capital Position

Key Business Strengths

Key Risks

IPORupee Insight

Rajnandini Fashion India Ltd is an affordable women’s apparel company with exposure to ethnic wear, casual wear, online fashion and B2B apparel supply.

The positive side is that the company has an online-first history and has sold through major e-commerce platforms. It also has its own brands and has recently started in-house manufacturing. This can help the company move from a trading-heavy business to a more controlled manufacturing and brand-led model.

The company’s B2B revenue growth is also notable. B2B revenue increased from Rs. 113.22 lakhs in FY 2023 to Rs. 1,523.26 lakhs for the nine months ended December 31, 2025. This shows that the company is trying to reduce over-dependence on pure B2C online sales and build a wider wholesale / retailer base.

The IPO structure is also important. The issue is a complete Fresh Issue with no OFS. This means the funds will come into the company. The use of funds includes expansion-related capex, working capital and debt repayment/prepayment.

However, retail investors should not ignore the risk side. This company is in a highly competitive and fast-changing apparel market. Fashion demand changes quickly, online platforms control visibility and policies, and customers can easily shift to other brands.

The biggest concern is cash flow and working capital. The company has reported negative operating cash flow in multiple periods. Inventories and receivables are also significant. For an apparel company, unsold stock, returned goods and delayed customer collections can quickly create working capital pressure.

The second major concern is B2C returns. A return rate of around 31% to 34% is high. Returns reduce net sales, increase logistics cost, affect inventory quality and may require discounting. This is a very important point for investors.

The third concern is supplier and customer concentration. Top 10 suppliers contributed around 90% of purchases in FY 2025 and top 10 B2B customers contributed around 69% of B2B revenue in FY 2025. This creates dependency risk.

Retail investors should check

• IPO valuation compared with EPS, PAT and cash flow
• Whether FY 2025 and December 2025 growth is sustainable
• B2C return percentage trend
• Online platform dependency
• B2B customer concentration
• Supplier concentration
• Inventory and receivable levels
• Working capital requirement after IPO
• Cash flow from operations
• Manufacturing execution after expansion
• Capacity utilisation of Surat and Jaipur units
• Debt position after IPO proceeds utilisation
• SME listing liquidity risk

IPORupee Education

What is Women’s Ethnic Wear?

Women’s ethnic wear includes traditional Indian clothing such as sarees, kurtis, kurta sets, unstitched dress materials and Patiala suits. This category is influenced by festivals, weddings, regional preferences and cultural occasions.

What is Casual Wear?

Casual wear means everyday clothing used for comfort and regular use. For Rajnandini Fashion India, casual wear includes tops, tunics, dresses, Co-Ord sets and maternity wear.

What is B2C?

B2C means Business to Consumer. In B2C, the company sells directly to individual customers, usually through e-commerce platforms or its own website.

What is B2B?

B2B means Business to Business. In B2B, the company sells products to wholesalers, retailers, garment processors or bulk buyers instead of selling directly to individual customers.

What is E-Commerce Marketplace?

An e-commerce marketplace is an online platform where multiple sellers sell products to customers. Examples include Amazon, Flipkart, Myntra, Ajio, Nykaa and Shopsy.

What is Sales Return?

Sales return means a customer returns the product after purchase. In online fashion, returns may happen due to size issues, colour mismatch, fabric expectations, delivery issues or customer preference changes. High returns can reduce net revenue and increase logistics and handling cost.

What is Inventory?

Inventory means stock held by the company. For an apparel company, inventory includes raw fabric, work-in-progress and finished garments.

What is Trade Receivable?

Trade receivable means money due from customers for goods already sold. If customers delay payment, the company may face cash flow pressure.

What is Working Capital?

Working capital is the money required to run daily business operations. In apparel business, working capital is needed for fabric purchase, manufacturing, inventory, platform sales cycle, receivables, packaging and logistics.

What is Capacity Utilisation?

Capacity utilisation shows how much of the installed production capacity is actually used. For example, if a unit can produce 100 pieces but produces 80 pieces, capacity utilisation is 80%.

What is Job Work?

Job work means outsourcing a part of the manufacturing process to outside vendors. In Rajnandini Fashion India’s case, printing work is outsourced to external vendors.

What is Book Built Issue?

Book built issue means the final IPO price is decided through a bidding process within a price band. The company and lead manager decide the final issue price based on demand.

What is SME IPO?

SME IPO means an IPO listed on an SME platform such as BSE SME or NSE SME. SME IPOs are generally smaller than mainboard IPOs and may have different lot size, liquidity and risk profile.

What is Fresh Issue?

Fresh Issue means the company issues new shares and receives money from investors. In Rajnandini Fashion India IPO, the issue is a Fresh Issue of up to 28,90,000 equity shares.

What is Offer for Sale?

Offer for Sale means existing shareholders sell their shares through the IPO. In Rajnandini Fashion India IPO, there is no Offer for Sale. Therefore, IPO proceeds will go to the company.

What is Market Maker Reservation?

In SME IPOs, a portion of the issue is reserved for the market maker. The market maker helps provide liquidity after listing by quoting buy and sell prices as per exchange rules.

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