What is Vedant Fashions Ltd IPO?

Amarjeet Maurya

By Mr. Amarjeet Maurya – AVP – Mid Caps, Angel One Ltd

In continuation to the IPO spree that the Indian markets have been witnessing in the past few months, investors are now looking forward to the public offer by Vedant Fashions Ltd, the force behind popular brands such as Manyavar, Mohey, Mebaz, Manthan, and Twamev. Banking on the overall popularity of the brands that has granted the brand much-needed recognition before the public launch, along with the stellar financial performance, the IPO is expected to drive a lot of value for the investors.

About the Company:

Vedant focuses on ethnic brands for men and primarily caters to the Indian celebratory wear market. It’s like a one-stop shopping where individuals can get all of their ethnic dress needs for all kinds of occasions at Vedant Fashions locations. In addition, it has a presence in multi-brand stores, big format stores, and online platforms.

Details of the IPO:

The initial public offering is set to open on 4 of February, and the initial sale will conclude on 8 of February as per the RHP (Red Herring Prospectus). The offer for sale consists of 3,63,64,838 equity shares by the promoters and existing shareholders. The face value of each share is ₹1, and the expected price band is ₹824 to ₹866 per equity share. A lot consists of 17 shares, and an investor could apply for a maximum of 13 lots. The post-issue market capitalisation is expected to be around ₹ 19,998 – 21,017 Cr. (Statistics source here)

Current Shareholding:

Rhine Holdings currently owns 7.2% of the company, while Kedaara AIF owns 0.3% and the Ravi Modi Family Trust owns 74.67%. The issue’s book running lead managers are Axis Capital, Edelweiss Financial Services, ICICI Securities, IIFL Securities, and Kotak Mahindra Capital. The pre-issue promoter holding is 92.40%.

International and Domestic Expansion of the Company’s Operations:

Since around September 2021, the firm has had a global retail network of 546 exclusive brand outlets (EBOs), comprising 58 shop-in-shops — 11 international EBOs in the United States, Canada, and the United Arab Emirates sizable Indian population. Hence, the overall presence of the enterprise is strong, not just in India but across different key markets.

Summing up

Being one of the most well-known men’s wedding wear brands, Vedant Ltd. seems to be right in the race with other listed IPOs. This appears to be a positive direction in which India seems to be heading, and this will not be the first or last time that an Indian brand has successfully made its mark in the stock market. It will increase brand recognition and provide a public market for its equity.

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