Understanding Shariah Compliance in IPOs and Stocks:
Investing wisely is essential for both financial growth and ethical alignment. For those interested in making investments that comply with Islamic law, understanding the Shariah status of Initial Public Offerings (IPOs) and stocks is crucial. This article aims to provide insights into the Shariah compliance of Vashishtha Luxury Fashion Ltd, ensuring that your investment choices are not only profitable but also ethical.
Table of Contents
Analyzing The Company
Company Name: Vashishtha Luxury Fashion Ltd
Industry: Speciality Retail
Listing At: BSE SME
Overview:
About Vashishtha Luxury Fashion Ltd.
Vashishtha Luxury Fashion Ltd. is a premier fashion company that specializes in high-end embroidery and embellished textiles. Founded in 2010 by Ravi Dhareshivkar and Mustak Odiya, the company takes great pride in preserving and promoting the rich tradition of Indian craftsmanship. Their artisans, who come from a long lineage of skilled embroiderers, use their expertise to create stunning pieces for both haute couture and prêt-à-porter brands globally. Vashishtha’s dedication to quality is evident in every piece, from the initial stitch to the final product.
The company operates with a strong mission centered on client satisfaction and transparency. They strive to be a reliable partner for their clients by streamlining the design process and offering competitive pricing. Vashishtha understands the importance of confidentiality, and protecting their clients’ designs and collection information is a top priority. They are also committed to upholding ethical standards, with a firm stance against child labor and a dedication to social compliance. The company is regularly audited by third-party organizations like Intertek and Sedex, and holds a Sedex membership with the number ZS408389016.
With sustainability in mind, Vashishtha is actively working to build a comprehensive archive of materials sourced sustainably. The company holds an MPCB government-issued zero-wastage, environment-friendly certificate, showcasing their commitment to eco-conscious practices.
Operations and Infrastructure
Vashishtha operates from a 4,000+ sq. ft. facility, allowing them to produce over 2,000 garments and accessories each month. The company’s well-organized internal structure is guided by the principles of excellence and integrity. With over 100 skilled artisans and a team of qualified experts, Vashishtha ensures a seamless process from sampling to production. They maintain rigorous quality control, with every final piece meticulously inspected to ensure it meets international standards. Clients are kept informed on the status of their orders throughout the development process.
To enhance their capabilities, Vashishtha has invested in a state-of-the-art in-house setup, including a computerized embroidery machine with two heads, eight sequin tracks, and twelve thread needles. This machine can work with various sequin sizes and colors, allowing for intricate designs on both yardages and engineered pattern pieces. Vashishtha also has its own computerized design studio and a material-sourcing team to ensure efficiency.
Beyond their expertise in hand and machine embroidery, Vashishtha offers a diverse range of services, including digital and hand printing, crochet, macrame, molding, soldering, and jewelry crafting. They maintain a vast library of thousands of designs, constantly creating new options to meet the needs of their clients.
Global Presence and Aspirations
Since 2010, Vashishtha has cultivated strong relationships with an international client base. Their commitment to maintaining global standards has been key to their success in the export market. The company is ISO 9001:2021 certified, demonstrating their versatile and high-quality management system. Vashishtha’s ultimate goal is to become a major embroidery supplier for fashion designers and houses across the globe, bringing traditional Indian embellishments—which have adorned royalty for centuries—to modern apparel. By infusing age-old techniques with contemporary flair, Vashishtha continues to make its mark on the fashion world.
Shariah Status
The IPO is currently Under Review.
IPO Timeline (Tentative Schedule)
- IPO Open Date: Monday, September 5, 2025
- IPO Close Date: Wednesday, September 10, 2025
- Tentative Allotment: Thursday, September 11, 2025
- Initiation of Refunds: Monday, September 12, 2025
- Credit of Shares to Demat: Monday, September 12, 2025
- Tentative Listing Date: Tuesday, September 15, 2025
- Cut-off time for UPI mandate confirmation: 5 PM on September 10, 2025
Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Individual investors (Retail) (Min) | 2 | 2,400 | ₹2,66,400 |
| Individual investors (Retail) (Max) | 2 | 2,400 | ₹2,66,400 |
| S-HNI (Min) | 3 | 3,600 | ₹3,99,600 |
| S-HNI (Max) | 7 | 8,400 | ₹9,32,400 |
| B-HNI (Min) | 8 | 9,600 | ₹10,65,600 |
Financials
Vashishtha Luxury Fashion Ltd. showed strong financial performance between the fiscal years ending March 31, 2024, and March 31, 2025. The company’s total income grew significantly by 46% to ₹10.88 crore, compared to ₹7.45 crore in the previous year. This growth led to an even more impressive increase in profit after tax (PAT), which surged by 346% to ₹1.42 crore from just ₹0.32 crore.
The company’s net worth also saw a substantial rise, more than doubling to ₹4.64 crore in 2025 from ₹1.78 crore in 2024. This was primarily driven by a sharp increase in reserves and surplus, which grew from ₹0.67 crore to ₹3.08 crore. Additionally, the company’s total borrowing decreased to ₹2.07 crore, indicating a reduction in debt. The overall financial picture is one of strong growth, increased profitability, and improved financial stability.
KPI
| Key Performance Indicator (KPI) | Value |
| ROE | 28.28% |
| ROCE | 31.43% |
| Debt/Equity | 0.34 |
| RoNW | 64.49% |
| PAT Margin | 14.14% |
| EBITDA Margin | 22.08% |
| Price to Book Value | 6.95 |
LINKS
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SEBI Disclaimer
Investing in IPOs involves risks. Please read the offer document carefully before investing. This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.