Vedant Fashions will be listed on the 16th of February

Following the conclusion of its Rs 3,149-crore offer-for-sale share sale last week, Vedant Fashions, which owns the ethnic apparel brand Manyavar, is being listed on the NSE on Wednesday. The company’s market worth is estimated to be over Rs 21,000 crore at the high end of the IPO price range of Rs 866 per share.

The qualified institutional buyers group had the most demand, with 7.49 times subscription, followed by non-institutional investors with 1.07 times subscription and retail investors with just 39% subscription at a price range of Rs 824-866 per share.

On Wednesday, Vedant will be listed on NSE

The offering was solely for the benefit of the promoters and existing shareholders. Manyavar’s other brands include Manthan, Twamev, Mebaz & Mohey, and it competes with Trent, Aditya Birla Fashion Retail, TCNS Clothing Company and Metro Brands in the branded wedding and celebration apparel industry.

Vedant’s income increased by 31% to Rs 853 crore in the third quarter of this year, up from Rs 651.1 crore the previous quarter. It had collected Rs 944.75 crore from 75 anchor investors at the highest price range of Rs 866 per share prior to the public offering.

The market capitalization of Rs 21,000 crore

Vedant Fashions, India’s leading firm in the men’s Indian wedding and celebration apparel category, has set the issue price for its initial public offering at Rs 866 per share, the top of the price range. The offering price ranged from Rs 824 to Rs 866 per share.

The business raised Rs 3,149.19 crore via an initial public offering (IPO) of more than Rs 3.63 crore equity shares at an issue price of Rs 866 per share. Investors and promoter Ravi Modi Family Trust made just one offer for sale in the public offering.

As a result, the whole profits of the IPO will go to the selling shareholders, and the firm will not get any IPO funds. Through the public offering, promoters and investors sold a total of 14.98 percent of the company’s stock.

The company’s market capitalization is Rs 21,017.36 crore, based on a final issue price of Rs 866 per share. Investors were not enthusiastic about the public offering, particularly retail and non-institutional investors, who subscribed 39 percent and 1.07 times, respectively, of the reserved portion.

On the final day of subscription, February 8, the issue was primarily backed by qualified institutional purchasers, whose part was booked 7.49 times, resulting in the overall issue being subscribed 2.57 times. The subscription period for the promotion began on February 4th.

Vedanta Fashions, with its main brand ‘Manyavar’ and four other brands, provides a one-stop-shop with a diverse range of products for any festive event. The majority of sales are generated via franchise-owned exclusive brand outlets, with the remainder coming from multi-brand outlets, large format shops, and online channels, such as the company’s website and mobile application.

According to sources, it’s grey market trading premium was reduced to zero to Rs 10 from Rs 40-50 previously, versus an issue price of Rs 866 per share. Investors’ lukewarm reaction to the public offering, as well as excessive market volatility fueled by fears of central banks tightening more aggressively to combat inflation, might be contributing factors to the decline in grey market premium.

On Friday, February 11, the business will complete its first public offering (IPO) share allocation. Investors may monitor the progress of their applications on the BSE website or the IPO registrar’s website. By February 14, funds will be reimbursed to failed investors, and equity shares will be credited to qualifying investors’ Demat accounts by February 15. According to the prospectus, the business will begin trading on the stock exchanges on February 16.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.