12 March 2026, Mumbai
With an intention to enter the public markets, Surat-based ethnic apparel major Ajmera Fashion has initiated plans for an SME Initial Public Offering (IPO). The company is currently preparing its Draft Red Herring Prospectus (DRHP), slated for submission between Q3-Q4, FY26. This move represents a strategic endeavor to solidify the brand’s market visibility, enhance its product offerings, and accelerate its franchise-led expansion across India’s burgeoning Tier II, Tier III, and rural markets.
Scaling through a franchise-led ecosystem
Ajmera Fashion has distinguished itself through a specialized franchise model designed to lower entry barriers for small retailers and first-time entrepreneurs. Currently, the company supports a network of approximately 220 operational franchise stores and has issued over 550 franchise tokens. By empowering local business owners, the brand has effectively captured a significant share of the regional ethnic wear demand. To boost its capital base ahead of the public listing, the company is also exploring a pre-IPO private placement. This potential investment round is anticipated to value the business at approximately Rs 300 crore, with about 5 per cent equity targeted for prospective investors.
Sustained financial momentum and market reach
The company’s growth trajectory reflects the rising demand for accessible ethnic apparel, with projected revenues for FY 2025–26 rising to Rs 200 crore from Rs 147 crore in the previous fiscal year. Concurrently, profit after tax is projected to increase to Rs 10–11 crore, compared to Rs 7 crore in FY24–25. Beyond the domestic market, Ajmera Fashion is actively diversifying its revenue streams through exports, tapping into international demand for Indian ethnic wear. This integrated approach - combining domestic retail expansion with an emerging global presence—positions the brand to sustain its competitive edge in a highly fragmented textile landscape.
Founded in 2011 by Ajay Ajmera, Ajmera Fashion is a leading ethnic apparel provider specializing in sarees, kurtis, and menswear. The company focuses on Tier II and rural markets through a franchise-led model. With consistent annual revenue growth, it aims to scale its distribution footprint via its upcoming SME IPO.
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