The shares of Vedant Fashion will be priced in the range of Rs 824-866 per equity
Vedant Fashion, the owner of ethnic wear brand Manyavar, will launch its Initial Public Offering (IPO) on 4 February. The subscription period of the issue is set to end on 8 February.
The Rs 3,149 crore IPO is expected to list of the Bombay Stock Exchange and National Stock Exchange on 16 February, according to a Live Mint report.
The shares of Vedant Fashion will be priced in the range of Rs 824-866 per equity. Investors can bid in lots of 17 shares, or its multiples thereafter. At the upper range of the price band, investors will have to shell out a minimum of Rs 14,722 for one lot of the Vedant Fashion issue. A maximum of 14 lots will be allotted to retail investors.
Of the total issue, 50 percent has been reserved for Qualified Institutional Buyers (QIB). Of the remaining public issue of Vedant Fashion, 15 percent has been set aside for non-institutional investors and 35 percent for retail investors.
The Grey Market Premium of the shares is currently at Rs 45.
The Vedant Fashion IPO is purely an Offer for Sale (OFS) by existing shareholders and promoter. This means that the company will not receive any of the proceeds from the public issue.
The OFS comprises of 36,364,838 equity shares, according to reports. This includes sale of 7.23 lakh shares by Kedaara Capital Alternative Investment Fund – Kedaara Capital AIF I, up to 1.74 crore shares by Rhine Holdings Ltd and up to 1.81 crore equity shares by Ravi Modi Family Trust.
The leading book managers of the Vedant Fashion public issue are ICICI Securities, Axis Capital, IIFL Securities, Edelweiss Financial Services and Kotak Mahindra Capital. Kfin Technologies India Private Ltd is the registrar of the issue.
With brands like Manyavar, Manthan Mohey, Twamev and Mebaz, Vedant Fashion is one the leading companies in the branded wedding and celebration wear market. Through 546 exclusive brand outlets (EBOs), the company has a pan-India presence. The total number of EBOs also includes 11 overseas ones in the UAE, US and Canada.
The company gained a profit of Rs 98.41 crore from April to September 2021. The coronavirus pandemic has badly affected the company’s revenue line, as it recorded a profit of Rs 132.9 crore in FY2020-21, against the profit of Rs 236.63 crore the year before.