Vedant Fashions (Manyavar) IPO ends with good response

Published on Feb 09, 2022 14:17

The initial public offer (IPO) of Vedant Fashions (Manyavar) received bids for 6,53,72,718 shares as against 2,54,55,388 shares on offer. The issue was subscribed 2.57 times.

The qualified institutional buyers (QIBs) category was subscribed 7.49 times. The non institutional investors category was subscribed 1.07 times.

The retail individual investors (RIIs) category received poor response. It was subscribed just 0.39%.

The issue opened for bidding on 4 February 2022 and it closed on 8 February 2022. The price band of the IPO was fixed at Rs 824-866 per share.

The offer comprised an offer for sale by selling shareholders Rhine Holdings of up to 1,74,59,392 equity shares aggregating Rs 1,512 crore at upper price band; Ravi Modi Family Trust of up to 1,81,82,432 equity shares aggregating Rs 1,575 crore at upper price band and Kedaara Capital Alternative Investment Fund - Kedaara Capital AIF I of up to 7,23,014 equity shares aggregating Rs 63 crore at upper price band.

Ravi Modi Family Trust pre-issue shareholding stood at 74.67% stake, which shall decrease to 67.1%, Rhine Holdings pre-issue shareholding was at 7.2%, which shall become nil and Kedaara AIF pre-issue shareholding stood at 0.3% stake, which shall become nil.

Ahead of the IPO, Vedant Fashions (Manyavar) on 3 February 2022, finalized allocation of 1,09,09,450 equity shares to anchor investors at an allocation price of Rs 866 per share, aggregating to Rs 9,44,75,83,700.

Vedant Fashions is engaged in retailing of ethnic wear. Its Manyavar brand is a category leader in the branded Indian wedding and celebration wear market with a pan India presence. Its other brands include Twamev, Manthan, Mohey and Mebaz. The Manyavar brand accounts for about 80% of the company`s revenues.

The company`s portfolio of products includes a diverse range of attires and accessories, each conceptualized by its designers who have experience in serving the distinct regional preferences of the Indian customer. Its products are manufactured by artisans having an abundance of expertise in the Indian wedding and celebration wear market, supplemented by its own ingrained knowledge of the demands of Indian festivals and weddings.

Its wedding portfolio also includes different ranges of creations for different members of the wedding entourage, besides unique personalization for the bride and the groom. Over the years, the company has built longstanding relationships with vendors and artisans, which have been critical towards it being able to command a dominant position in a market that was conventionally an unorganized market.

As of 30 September 2021, the company had a retail footprint of 1.2 million square feet covering 535 exclusive brand outlets (EBOs), including 58 shop-in shop, spanning across 212 cities and towns in India and 11 EBOs overseas across United States, Canada and the UAE.

The company reported a consolidated net profit of Rs 98.40 crore and sales of Rs 359.80 crore for the twelve months ended September 2021.