Mother Agri Food Ltd. IPO

Rajnandini Fashion India

• Rajnandini Fashion India is coming out with an initial public offering (IPO) of 28,90,000 shares in a price band of Rs 59- 63 per equity share.
• The issue will open on May 26, 2026 and will close on May 29, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 5.90 times of its face value on the lower side and 6.30 times on the higher side.
• Book running lead manager to the issue is Seren Capital.
• Compliance Officer for the issue is Jinkal Hardik Vora.

Profile of the company

Rajnandini Fashion India is primarily engaged in the design, manufacturing and sale of women’s apparel, catering to both ethnic and casual wear categories through online and offline channels. Its ethnic wear portfolio includes unstitched dress materials, sarees, kurtis and kurta sets, while the casual wear portfolio comprises tops, tunics and maternity gowns made of poly-cotton, rayon, silk, cotton and other fabrics. Its sales operations are carried out under two segments - business-to-consumer (B2C) and business-to-business (B2B). 

In the B2C segment, sales are made directly to individual customers through various e-commerce platforms and its own website. In the B2B segment, it supplies apparel products to wholesalers and retailers and undertake bulk trading of fabrics, including printed design fabrics and dyed plain fabrics, which cater to garment processors and bulk buyers. These trading operations enable it to address a broader segment of the textile value chain. The company’s products are offered at various price levels, enabling them to serve a broad customer base and meet demand across different product categories. It markets its products under four brands, namely Merira, Monira, Roly Poly and Rajnandini.

In 2023, the company established its first manufacturing facility at Surat to undertake in-house production of women’s apparel. In 2024, it expanded manufacturing operations by starting another facility at Jaipur. Currently, the Surat unit is equipped with 90 sewing machines and the Jaipur unit with 50 sewing machines. Prior to 2023, the company was primarily engaged in outsourced manufacturing of women’s apparel and trading of fabrics. The company holds ISO 9001:2015 certification for its Quality Management System covering ‘Garments - Women’s or Girls of Cotton, Kurta and Salwar’ at its Surat Unit.

Proceed is being used for:

• Funding of capital expenditure for setting up a new manufacturing facility 
• Repayment of a portion of certain borrowings availed by the company 
• Utilization towards working capital requirements 
• General corporate purposes

Industry Overview

The textiles and apparel industry, a global manufacturing sector, encompasses the production of fibres, yarns, fabrics, garments and technical textiles for diverse end uses. Supported by natural fibres such as cotton, jute, silk and wool, as well as man-made fibres including polyester, viscose, nylon and acrylic, the industry caters to apparel, home textiles and specialized technical applications. India, the world’s second-largest producer and sixth-largest exporter, contributes 2.3% to GDP and 12% to exports, with a domestic market projected to grow to $350 billion by 2030 and exports estimated at $65 billion by FY26. Segments include ready-made garments, cotton textiles, man-made textiles, home textiles and technical textiles, with the latter projected to achieve significant growth globally, reaching $309 billion by 2047.

India’s home textiles sector is recognised for its strong traditions and craftsmanship, with different regions specialising in distinct textile techniques. Gujarat is known for its intricate embroidery, while Kashmir is noted for woollen shawls and rugs. This diversity highlights India’s heritage and expertise in textile production. Exports of home textiles grew from $5.3 billion in CY2017 to $8 billion in CY2022, recording a CAGR of 7.1%. The industry is projected to expand at a CAGR of 8.9% between 2023 and 2032, increasing from $10.78 billion in 2023 to $23.32 billion by 2032. India currently accounts for 4% of the global home textiles trade. The growth of the segment is supported by rising household incomes, demographic expansion and demand from end-use sectors such as housing, hospitality and healthcare. Companies in the segment are also adopting digital technologies to strengthen value chains.

The Indian textiles and apparel industry is projected to expand significantly over the next decade, supported by both domestic consumption and export growth. The domestic market is expected to grow at a CAGR of 10% to reach $350 billion by 2030, driven by rising incomes, demographic shifts and greater penetration of organised retail. On the export front, India recorded textile and apparel exports of $36.61 billion in FY25, which are projected to reach $65 billion by FY26 and are targeted to scale up to $100 billion by 2030. Policy initiatives, including the Rs 10,683 crore Production Linked Incentive Scheme focusing on man-made fibre apparel, fabrics and technical textiles, along with the establishment of PM MITRA parks, are expected to strengthen manufacturing capacity and global competitiveness. Emerging segments such as technical textiles and home textiles are also anticipated to contribute meaningfully to growth, aligning India’s positioning with evolving global demand trends. 

Pros and strengths

Wide range of products across multiple price points: The company offers a diverse portfolio of women’s apparel across ethnic, casual and fusion wear categories. The product range includes Cotton Tops, Tunics, Kurta Sets, Maternity Wear, Dresses, Kurtas, Patiala Suit, Fabrics, Unstitched Dress Materials, Sarees and Co-Ord sets. These products are generally priced within the range of Rs 250 to Rs 2,000, allowing the company to address various customer segments. This product variety, combined with price segmentation, enables the company to cater to different customer preferences and participate in multiple demand categories, from entry-level price points to higher-value products. This approach supports scale across the company’s operations. 

Presence across multiple online platforms: The company markets its products in the business-to-consumer (B2C) segment through e-commerce platforms such as Amazon, Flipkart, Myntra, AJIO, Nykaa, LimeRoad and others, in addition to its own website. This enables access to customers across metropolitan as well as tier-II and tier-III cities in India. For online operations, the company uses Uniware for inventory and order management and Shopify as the platform for its website, which supports stock monitoring, channel integration, order processing and return management.

In-house manufacturing facilities: It operates two manufacturing facilities, namely Unit I located at Surat, Gujarat and Unit-II located at Jaipur, Rajasthan. Its manufacturing operations comprise various processes including fabric sourcing, design and pattern development, embroidery, stitching, finishing, branding and packaging activities, while printing activities are undertaken through external vendors on a job-work basis. The manufacturing facilities are equipped with industrial sewing machines and supported by a workforce engaged in stitching, embroidery, finishing and quality control activities. Garments manufactured by it undergo quality checks at multiple stages including stitching, embroidery, finishing, ironing and packaging prior to dispatch. Its in-house manufacturing capabilities enable it to exercise operational control over manufacturing processes, maintain product quality standards, manage delivery timelines and reduce dependence on third-party manufacturing vendors.

Risks and concerns

Dependence on evolving consumer preferences and fashion trends: Its business is significantly influenced by consumer preferences and evolving fashion trends, particularly in the ethnic and casual wear segments. The success of its products, including sarees, kurtis, kurta sets, unstitched dress materials, tops, tunics, maternity wear and fabrics, depends on its ability to anticipate, identify and respond to changing consumer demands and emerging fashion styles. Consumer buying behaviour is also influenced by socio-economic factors, including disposable income, employment levels, festivals and social occasions. Any slowdown in economic growth or discretionary spending could adversely impact demand for its products. While it attempts to mitigate these risks by offering a diverse product portfolio across various price ranges and by operating in both the B2C and B2B segments, there can be no assurance that its strategies will align with future consumer preferences. If it is unable to effectively respond to evolving fashion trends, consumer tastes and socio-economic shifts, its business, financial condition and results of operations could be materially and adversely affected.

Reliance on third-party e-commerce marketplaces: A significant portion of its B2C sales is routed through third-party e-commerce marketplaces, including but not limited to Amazon, Flipkart, Myntra, Ajio, Nykaa, Shopsy and others, in addition to sales through its own website. Its continued ability to attract, retain and service customers on these platforms depends, in part, on the terms and conditions, policies, pricing, promotional mechanisms, search and ranking algorithms, seller support and logistical arrangements offered by these marketplaces. Marketplaces are able to change listing and product display algorithms, commission and fee structures, return and refund policies and promotional eligibility criteria, often without significant prior notice. Any such changes could reduce its visibility on these platforms, increase its cost of selling, adversely affect its conversion rates and average order values, or reduce its gross margins.

Concentration of revenue in casual and ethnic wear products: A substantial portion of its revenue from operations is derived from the sale of casual and ethnic wear products. For the nine months ended December 31, 2025, and for Fiscals 2025, 2024 and 2023, revenue generated from casual and ethnic wear products (including manufactured and traded products) contributed 78.84%, 75.33%, 90.97% and 97.72%, respectively, of its revenue from operations. Its dependence on these categories exposes it to concentration risks, as any reduction in demand, adverse trends, or unfavorable developments in this segment could materially impact its revenues. Additionally, the rapid expansion of e-commerce and fast-fashion retailers has intensified customer expectations around variety, design, pricing and delivery, which may adversely affect its market position if it is unable to respond effectively.

Outlook

Rajnandini Fashion India is primarily engaged in the design, manufacturing and sale of women’s apparel, catering to both ethnic and casual wear categories through online and offline channels. It markets its products in the B2C segment through e-commerce platforms such as Amazon, Flipkart, Myntra, AJIO, Nykaa, LimeRoad and others, in addition to its own website. This enables access to customers across metropolitan as well as tier-II and tier-III cities in India. On the concern side, it derives a significant portion of its revenue from fabric and apparel trading activities, which is a low-margin and competitive business and may expose it to risks that could adversely affect its financial performance. Its dependence on trading activities exposes it to risks relating to pricing pressure, lower profitability and heightened competition. Further, its dependence on a limited number of suppliers for raw materials, coupled with volatility in raw material prices and increases in operational costs, could adversely affect its business, financial condition, results of operations and cash flows.

The company is coming out with a maiden IPO of 28,90,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 59-63 per equity share. The aggregate size of the offer is around Rs 17.05 crore to Rs 18.21 crore based on lower and upper price band respectively. On performance front, the revenue from operations for FY25 stood at Rs 3,068.95 lakh whereas in FY24 it was Rs 2,331.84 lakh representing an increase of 31.61%. Moreover, profit after tax for the year ended March 31, 2025, stood at Rs 506.41 lakh and for the year ended March 31, 2024 it was Rs 229.04 lakh representing an increase of 121.10%.

To support future growth and enhance manufacturing capabilities, the company proposes to establish an additional manufacturing facility at Surat admeasuring around 6,000 sq. ft. The proposed expansion includes installation of additional machinery and related infrastructure to strengthen operational scalability and manufacturing capabilities. Going forward, it proposes to expand its business-to-business (B2B) segment by enhancing engagement with bulk buyers, garment processors and apparel retailers. The strategy includes broadening its product portfolio to cater to varying customer requirements and strengthening supply chain arrangements to ensure timely delivery and consistency in quality. Further, it proposes to enhance the use of social media platforms as a marketing and customer engagement tool.