Vedant Fashions, which owns leading ethnic and celebration wear brands ‘Manyavar’, ‘Mohey’ and ‘Manthan’, has filed draft documents with capital markets regulator Sebi for an initial public offering (IPO).
The IPO is purely an offer for sale of up to 3.64 crore equity shares by promoters and existing shareholders for cash, according to the draft red herring prospectus (DRHP).
The OFS comprises sale of up to 1.74 crore shares by Rhine Holdings, up to 723,014 shares by Kedaara Capital Alternative Investment Fund – Kedaara Capital AIF 1, and up to 1.82 crore equity shares by the Ravi Modi Family Trust. Notably, marquee investors — Kedaara and Rhine — have decided to exit through the OFS.
The promoters of Kolkata-based Vedant Fashions are: Ravi Modi, Shilpi Modi and the Ravi Modi Family Trust, acting through its trustee Modi Fiduciary Services. Ravi Modi is the founder, chairman and managing director of the company.
Currently, the Ravi Modi Family Trust holds 18.10 crore equity shares or a 74.67% stake in the company. Rhine Holdings holds 1.74 crore shares or a 7.2% stake, while Kedaara AIF holds 723,014 shares or a 0.30% stake.
As the selling shareholders will be entitled to the entire proceeds of the offer after deducting offer expenses and relevant taxes thereon, Vedant Fashions will not receive any proceeds from the IPO.
“In FY21, 44.22% of the sales of our customers were generated by our franchisee-owned exclusive brand outlets (EBOs) from Tier I cities, 42.05% from Tier 2 cities and 12.31% from Tier 3 cities. The remaining 1.42% of the sales of our customers by our franchisee-owned EBOs were generated from international markets,” the company said in the DRHP.
For financial years 2019, 2020 and 2021, the company’s revenue from operations stood at Rs 800.74 crore, Rs 915.55 crore and Rs 564.82 crore, respectively.