Vedanta Fashions to debut on stock exchanges today

Vedant Fashions IPO: Shares of Vedant Fashions, the owner of ethnic wear brand Manyawar, will debut the D-Street today, i.e., Wednesday, February 16, 2022. The issue price is Rs 866 per share. The public issue was purely an offer-for-sale of 3,63,64,838 equity shares by the promoter and existing shareholders.

Amid the ongoing volatility in the secondary market, it is expected that the shares of Vedant Fashions will make a muted debut - maybe near its issue price - on the bourses.

The company is commanding a premium of Rs 20 over its issue price in the grey market, which is merely 2 per cent higher than its issue price of Rs 866 per share.

The Rs 3,149.19 crore initial public offering (IPO) of Vedant Fashions Limited opened for subscription on Friday, February 4, 2022, and concluded on Tuesday, February 8, 2022. The IPO closed with 2.57 times subscription and the portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 7.49 times. The Non Institutional Investors portion and Retail Individual Investors (RIIs) were subscribed 7.07 times and 0.39 times, respectively.

The company expects the proposed listing to enhance visibility and brand image, and enable shareholders to obtain greater liquidity.

Axis Capital Limited, Edelweiss Financial Services Limited, ICICI Securities Limited, IIFL Securities Limited and Kotak Mahindra Capital Company Limited were the book running lead managers of the issue and KFin Technologies Private Limited was the registrar for it.

Incorporated in 2002, Vedant Fashions has built a multi-channel network across the country. The company is a category leader in the branded wedding and celebration wear market under its flagship brand Manyavar, according to CRISIL Research. It houses five more brands—Mohey, Mebaz, Manthan and Twamev.

Vedant Fashions has also expanded its footprint over the last five years. As of September 2021, the company has an extensive retail network with 546 exclusive brand outlets (EBOs), including 58 shop-in-shops globally -- 11 overseas EBOs across the United States, Canada and the UAE, having a large Indian diaspora.