Riyaasat Lifestyle IPO Targets ₹1247 Lakh for New Flagship Stores; BSE SME Listing Planned Amid Expansion Drive

Mumbai, 16 July 2025: Riyaasat Lifestyle Ltd, an emerging name in India’s ethnic wear industry, has filed its Draft Red Herring Prospectus (DRHP) with the BSE SME platform for a 100% book-built initial public offering (IPO). The company is set to issue up to 28,48,800 fresh equity shares with a face value of ₹10 each. While the total issue size and price band remain undisclosed, the proposed utilisation of IPO proceeds signals a clear focus on nationwide retail expansion and operational strengthening.

₹1247 Lakh Capital Allocation to Set Up Four Flagship Showrooms

Riyaasat plans to allocate ₹1247 lakh from the net proceeds toward capital expenditure for opening four new exclusive showrooms in major metro cities-Mumbai, Surat, Hyderabad, and Bengaluru. The total planned retail space will span 17,700 sq. ft, with flagship stores designed to enhance customer experience and brand visibility.

City-wise Capital Outlay

• Mumbai (Santacruz West): ₹458 lakh
• Surat (Athwalines): ₹176 lakh
• Hyderabad (Jubilee Hills/Banjara Hills): ₹309 lakh
• Bengaluru (Jayanagar/Commercial Street): ₹304 lakh

Fit-out costs include interiors, air-conditioning, branding, electricals, and facade work, based on vendor inputs from Shravan Design Company and Orka Realty LLP.

₹950 Lakh to Support Inventory and Working Capital Needs

In addition to physical expansion, ₹950 lakh is earmarked for working capital requirements. This includes inventory procurement for both new and existing stores, trade receivables, and business operations. The company’s net working capital for FY26 is projected at ₹2,644.56 lakh, of which a significant portion will be funded via the IPO.

Promoter Holding Remains Strong; Lock-in as per SEBI Norms

The IPO will not include any offer for sale (OFS). As per the DRHP, pre-issue promoter holding stands at 99.74%, split among:

• Gaurang Ramanbhai Galiya: 69.62%
• Ramanbhai Nanubhai Galiya: 15.06%
• Sobhanaben R. Galiya: 15.06%

As per SEBI guidelines, a minimum promoter contribution will remain locked in for three years, while additional holdings will be subject to a one- or two-year lock-in period.

Financial Growth Fuels IPO Ambitions

Riyaasat has posted a consistent revenue and profit growth trajectory since FY22. Revenue rose from ₹4.36 crore (FY22) to ₹22.87 crore (FY24), with net profit growing from ₹0.08 crore to ₹4.08 crore in the same period. As of January 2025, the company reported:

• Revenue: ₹21.18 crore
• Net Profit: ₹3.15 crore
• Net Worth: ₹11.38 crore
• Borrowings: ₹6.20 crore

The earnings per share (EPS), on a post-bonus basis, stood at ₹3.99. Inventory turnover ratio reduced to 1.20 days due to pre-season stocking to meet expected demand.

SME Listing to Mark National Brand Expansion

The equity shares of Riyaasat Lifestyle Ltd are proposed to be listed on the BSE SME platform, with Mark Corporate Advisors Pvt. Ltd. serving as the Book Running Lead Manager and Accurate Securities as the Registrar to the Issue. The IPO will provide the company with the financial flexibility to extend its physical footprint beyond Gujarat and strengthen its supply chain to support national operations.

About Riyaasat Lifestyle Ltd

Founded in 2021, Riyaasat Lifestyle Ltd is a customised ethnic wear brand catering to both men and women. It currently operates exclusive showrooms in Ahmedabad and Vadodara. The brand is promoted by Mr. Gaurang Galiya and his family, and it aims to establish a strong pan-India retail presence through this IPO-driven growth strategy.

REF: https://www.bsesme.com/download/389631/SME_IPO InPrinciple/RiyaasatLifestyleLtd_20250715213356.pdf

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