Vedant Fashions Limited, the owner of ethnic wear brands such as ‘Manyvar’ and ‘Mohey’ is set to enter Dalal Street with an IPO (initial public offering). The company’s public issue will open for subscription in the primary market on February 4 next week and close on February 8. The issue will be entirely an offer for sale (OFS) of 36,364,838 equity shares by existing shareholders of the company. The issue size at the upper end of the price band of Rs 824-866 per share is Rs 3,150 crore. Vedant Fashions IPO will be the third public issue of 2022 with AGS Transact Technologies being the first and the Adani Wilmar the other.
Vedant Fashions IPO will not consist of a fresh issue of equity shares but will only be an OFS. Ravi Modi Family Trust (acting through its trustee, Modi Fiduciary Services Private Limited) will trim their stake, selling up to 18,182,432 equity shares of Vedant Fashions while Rhine Holdings will sell 17,459,392 equity shares and Kedaara AIF will sell up to 723,014 equity shares. Being an OFS, Vedant Fashions Limited will not get any proceeds from the issue.
Half of the issue is reserved for Qualified Institutional Buyers (QIB) while 35% will be available for retail investors to bid on. Only 15% of the entire issue size will be available for non0institutional investors. Investors can bid for the IPO next week in a bid lot of 17 equity shares and multiples thereafter. On the upper end of the price band of Rs 824-866 per share the minimum investment for the IPO would be Rs 14,722. Axis Capital, Edelweiss Financial Services, ICICI Securities, IIFL Securities, and Kotak Mahindra Capital are the book running lead managers of the issue.
Vedant Fashions Limited is a retail fashion brand that sells Indian weddings and celebrations weak across the country. It owns and runs the brand Manyavar, Mohey, Mebaz, Manthan, and Twamev. As of September 30, 2021, the company had a retail footprint of 1.2 million square feet covering 535 EBOs (including 58 shop-in-shops) spanning across 212 cities and towns in India, and 11 EBOs overseas across the United States, Canada and the UAE.
During the previous financial year, the company had a revenue of Rs 5,648 million and a profit of Rs 1,329 million. Till September 30, 2021, the company had a revenue of Rs 3,598 million and a profit of Rs 984 million.