Manyavar owner-Vedant Fashions IPO shares are likely to be listed on stock exchanges on Wednesday, 16 February 2022. The Rs 3,149 crore Vedant Fashions IPO was subscribed 2.57 times on the final day. In the grey market, Vedant Fashions shares were quoting at a premium of Rs 22 per share over the IPO price of Rs 866 apiece. Vedant Fashions shares were seen trading at Rs 888 apiece, a 2.5 per cent premium in the grey market, over the issue price, according to the people who deal in shares of unlisted companies. Analysts say that the public issue of Vedant Fashions got a sluggish response as the issue looked very richly priced.
With sell off pressure and increasing volatility in Indian markets we do not expect gains on the listing day from this issue, Likhita Chepa, Senior Research Analyst at CapitalVia Global Research, told Financial Express Online. “We expect Vedant Fashions to list at a discount of 8 to 10 per cent even as its GMP is signaling at par listing,” she added.
Vedant Fashions public issue was purely an offer-for-sale by the promoters and existing shareholders — by Rhine Holdings, Kedaara Capital Alternative Investment Fund; and the Ravi Modi Family Trust owned by Ravi and Shilpi Modi. The correction in recently listed stocks and broder market sailing in deep red sea have turned investors cautious, Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares, told Financial Express Online. Doshi added that the listing should also be in parallel line as hardly anything is left on the table for investors. “A flattish to marginal discounted listing is expected,” he added.
While Manyavar is a category leader in the branded wedding and celebration wear market, its other brands include Twamev, Manthan, Mohey, and Mebaz and it competes with Aditya Birla Fashion Retail, Trent, Metro Brands and TCNS Clothing Company. Vedant Fashions is completely debt-free, although the market sentiment has been low due to the Russia-Ukraine conflict. The company has strong fundamentals and based on them, has raised Rs 944.75 crore through anchor investors. “The company has a long-term AA rating from CRISIL and all the operating efficiency ratios are better than its peers. We expect a listing close to Rs 890-900. Although, this stock is for long-term investment, keeping in mind the industry’s growth as well as a strong brand reputation,” Rajesh Singla, Founder & CEO, PreIPO consulting firm Planify Consultancy, told Financial Express Online.
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