Rajnandini Fashion Makes Flat Market Debut at ₹63, Ties IPO Price of ₹63

Rajnandini Fashion India IPO Makes Flat Debut in Indian Stock Market

Rajnandini Fashion India's share price made a flat debut in the Indian stock market on Wednesday, 3 June, listing at ₹63 per share on the BSE SME, the same as its issue price. This marks a successful SME IPO that exceeded street expectations, as evidenced by the grey market premium (GMP) of ₹6 per share, indicating a likely listing price of ₹69, a 9.5% premium from its IPO price of ₹63.

Subscription Status and Details

The Rajnandini Fashion IPO witnessed an extraordinary subscription in the three days of bidding, with the issue being subscribed 203.74 times by the end of Day 3. The retail portion was bid 168.63 times, the Non-Institutional Investor (NII) portion was booked 393.63 times, and the Qualified Institutional Buyers (QIBs) segment was subscribed 122.04 times. The company received bids for 39.24 crore shares against 19.26 lakh shares on offer.

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The Rajnandini Fashion India SME IPO was available for subscription from May 26 to May 29, while the basis of allotment was finalised on June 1. The public issue was a book-built offering aggregating ₹18.21 crore, consisting solely of a fresh issue of 29 lakh equity shares. There was no offer-for-sale (OFS) component in the IPO.

The company intends to deploy the net proceeds of ₹13.85 crore towards various business objectives. Of this, ₹1.35 crore has been earmarked for capital expenditure related to the establishment of a new manufacturing facility, ₹5.50 crore will be utilised for partial repayment of certain outstanding borrowings, and ₹7 crore has been allocated to meet working capital requirements. The balance amount will be used for general corporate purposes.

Rajnandini Fashion India is engaged in the design, manufacturing and sale of women's apparel through both online and offline distribution channels. The company caters to ethnic wear as well as casual wear segments. Established in 2010, it has a portfolio that includes sarees, kurtis, kurta sets, unstitched dress materials, tops, tunics, dresses, and maternity gowns, manufactured using a variety of fabrics, including cotton, rayon, silk, and poly-cotton.

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