The IPO of Riyaasat Lifestyle, an Ahmedabad-based ethnic wear retailer, will open for subscription on Thursday, with the issue priced in a band of Rs 102 to Rs 108 per share. The IPO will remain open until June 22, with allotment expected on June 23 and listing on the BSE SME platform slated for June 25.The grey market premium (GMP) for the issue stood at zero ahead of the opening, indicating that unofficial market activity is pricing the stock in line with the upper end of its issue band, with no listing pop currently being anticipated by grey market participants. A flat GMP at the open of a book-built SME issue typically points to a cautious or wait-and-watch sentiment among retail investors, rather than the strong pre-listing demand often seen in heavily subscribed small-cap offers.The Rs 30.77-crore issue is entirely a fresh issue of 28,48,800 shares, with no offer-for-sale component, meaning all proceeds will go to the company rather than existing shareholders.Of this, 27,02,400 shares are on offer to the public after excluding 1,46,400 shares reserved on a firm basis for market maker Nikunj Stock Brokers. Within the net public offer, retail investors have been allocated 59.24% of the shares, non-institutional investors 35.70%, and qualified institutional buyers the remaining 5.06%.The lot size has been fixed at 1,200 shares, requiring retail investors to commit a minimum of 2,400 shares, or Rs 2,59,200, at the upper end of the price band. For high-net-worth individual investors, the minimum application size has been set at 3 lots, or 3,600 shares, amounting to roughly Rs 3,88,800.Riyaasat Lifestyle was incorporated in October 2021 and sells ethnic wear for men and women, including kurtas, pyjamas, sherwanis, jodhpuris, lehengas and gowns.The company opened its first exclusive brand outlet (EBO) in Ahmedabad later that year and has since expanded to six EBOs across Gujarat and Maharashtra, with store sizes ranging from 1,790 to 9,419 square feet. It also sells through its own website and online marketplaces, including Pernia's Pop-Up Shop, and employed around 177 people as of January 2026.Financially, the company has shown steady growth. Revenue rose from Rs 20.94 crore in FY23 to Rs 25.19 crore in FY25, while profit after tax grew from Rs 1.32 crore to Rs 4.87 crore over the same period. For the ten months ended January 2026, the company reported total income of Rs 28.13 crore and profit after tax of Rs 4.29 crore.The company plans to use the IPO proceeds primarily for capital expenditure towards setting up four new stores, estimated at Rs 12.47 crore, along with working capital requirements of Rs 9.50 crore and the remainder for general corporate purposes.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)