Vedant Fashions Ltd, which owns ethnic wear brand Manyavar, 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 and close on February 8.
Manyavar IPO: Price Details
The company has fixed a price band of Rs 824-866 per share and the public issue is expected to fetch Rs 3,149 crore, at the upper end of the band. The bidding for anchor investors will open on February 3. The initial share sale, which will conclude on February 8, is purely an offer for sale (OFS) of 36,364,838 equity shares by promoter and existing shareholders. The promoters of the company are Ravi Modi, Shilpi Modi and Ravi Modi Family Trust.
Vedant Fashions IPO will be the third public issue of 2022 with AGS Transact Technologies being the first and the Adani Wilmar the other.
Manyavar IPO: Issue Size
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.
Manyavar IPO: Issue Objective
Vedant Fashions Limited in its DHRP had said, “The Selling Shareholders will be entitled to the entire proceeds of the Offer after deducting the Offer expenses and relevant taxes thereon.”
Manyavar IPO: Listing Date
The company’s shares are expected to list on stock exchanges NSE and BSE on February 16, 2022.
Manyavar IPO: About the Company
Vedant Fashions Limited is one of the largest companies in India in the men’s wedding and celebration wear segment. The company’s flagship brand ‘Manyavar’ is a category leader in the branded wedding and celebration wear market with a pan-India presence. Other brands of the company include, Twamev, Manthan, Mohey, and Mebaz.
As of September 2021, the company has an extensive retail network with 546 exclusive brand outlets (EBOs) including 58 shop-in-shops globally, including 11 overseas EBOs across the United States, Canada, and the UAE, which are countries with a large Indian diaspora.
Manyavar IPO: Financials
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.
“In Financial Year 2021, 44.22% of the Sales of their customers was generated by their franchisee-owned 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 their customers by their franchisee-owned EBOs was generated from international markets,” said Axis Capital in its note.
“In Financial Years 2019, 2020 and 2021 and the 6 months ended September 30, 2021, 92.20%, 91.14%, 90.14% and 88.09% of the Sales of their customers, respectively, was generated by franchise-owned exclusive brand outlets (their “EBOs”), with the remaining by multi-brand outlets (“MBOs”), large format stores (“LFSs”) and online platforms, including their website (www.manyavar.com) and mobile application,” Axis Capital further noted.
Manyavar IPO: GMP
As per market observers, Vedant Fashions shares have started commanding a premium (GMP) of Rs 105 in the grey market. The GMP would indicate how the Manyavar IPO will perform at the bourses once it gets listed.
Axis Capital, Edelweiss Financial Services, ICICI Securities, IIFL Securities, and Kotak Mahindra Capital are the book-running lead managers to the issue. KFintech Private Limited is the registrar of the public issue.
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