Ajmera Fashion Limited Plans SME IPO to Expand Ethnic Wear Business

Ajmera Fashion Limited, an ethnic apparel company based in Surat, is preparing to enter the public market through a proposed SME Initial Public Offering (IPO). The company plans to file its Draft Red Herring Prospectus (DRHP) between the 3rd – 4th Quarter of FY 2026-27. The planned offering marks the next stage in the company’s business expansion.

The company was founded by Ajay Ajmera in 2011. Since its establishment, Ajmera Fashion has developed a presence in the ethnic apparel segment, offering products including sarees, kurtis, dress materials and ethnic menswear. The company focuses primarily on Tier 2, Tier 3 and rural markets across India.

Ajay Ajmera entered the textile industry in Surat in 1992, beginning his career with a monthly salary of ₹1,200. During this period, he worked in different roles within the textile sector, gaining industry experience and market insights. This experience led him to establish Ajmera Fashion Limited with the objective of building an apparel sourcing ecosystem for retailers and entrepreneurs.

Ajay Ajmera Founder and CEO Ajmera Fashions

The company has expanded its distribution network through a franchise-based retail model. Currently, approximately 220 franchise stores are operational across India, and the company has issued more than 550 franchise tokens.

Ajmera Fashion has also expanded its international operations through product exports. The company’s overseas sales contribute to its revenue diversification beyond the domestic market.

Financially, the company has reported growth in recent years. Ajmera Fashion expects its revenue to reach approximately ₹200 crore in FY 2025 – 26, compared with approximately ₹147 crore in FY 2024 – 2025. Profit after tax is projected to increase to ₹10–11 crore, up from ₹7 crore in the previous period.

Prior to the IPO, the company is considering a pre-IPO private placement to strengthen its capital structure. The proposed round is expected to value the company at approximately ₹300 crore, with around 5% equity likely to be offered to investors.

Commenting on the company’s next phase of growth, Ajay Ajmera, Founder and CEO of Ajmera Fashion Limited, said, "We started this journey with one goal in mind: to make the textile business more accessible for small retailers and first-time entrepreneurs. Ajmera Fashion has built credibility that deeply connects with India’s emerging markets. The upcoming IPO is a significant step to strengthen our brand visibility, expand our product portfolio, and further advance our franchise expansion across the country.”

According to the company, the proposed IPO is intended to support Ajmera Fashion’s business expansion plans and its positioning within the Indian ethnic fashion market.