Shares of Rattanindia Enterprises Ltd rose more than 7% in morning trade on April 19 after the company said it launched a direct-to-consumer (D2C) fashion brand.

Neobrands Limited, a wholly-owned subsidiary of RattanIndia Enterprises Ltd, launched the brand.

The stock was trading at Rs 40.44 on the BSE at 10:21 am, up 4.74% from its previous close, having earlier touched a high of Rs 41.42.

The new company will cover a range of fashion categories, such as everyday wear, denim, athleisure and performance.

The company said it aims to cater to India’s fast-expanding fashion and apparel market, offering young consumers stylish, high-quality clothing at affordable prices.

Neobrands Limited seeks to be a hub for multiple brands in the fashion industry, the company said in a notice to exchanges.

It said India’s fashion industry is experiencing a remarkable growth trajectory with massive demand for trendy and premium brands.

Anjali Nashier Rattan, Business Chairman, RattanIndia Enterprises, said, “Our brands span multiple categories and are poised to capture this market opportunity by offering stylish and affordable apparel options for both men and women.”

In the initial phase, Neobrands Limited will launch its brands directly to consumers through digital platforms.

Afterwards, it will leverage a digital-first approach to expand its brand’s retail presence nationwide. Rattan said this would allow Neobrands to scale the business while maintaining its digital focus.