Manyavar owner Vedant Fashions to IPO next week

Kolkata-based Vedant Fashions Limited, owner of ethnic clothing brands Manyavar, Mohey and Mebaz, is set to hit Dalal Street next week with its initial public offering (IPO). This will be the third public issue of the year, after AGS Transact Technologies and Adani Wilmar.

The public issue will be opened for subscription on February 4 and closed on February 8. Anchor investors will be able to bid for the issuance on February 3.

Vedant Fashions has set a price range of Rs 824-866 per share for the public issue. At the upper end of the price range, the show is expected to fetch Rs 3,149 crore, Mint reported.

According to market watchers, shares of Vedant Fashions are today selling at a premium of Rs 105 in the gray market, according to the Mint report.

The public offering will be entirely an offer for sale (OFS) of 36,364,838 shares by existing shareholders and promoters Ravi Modi, Shilpi Modi and Ravi Modi Family Trust. It will not consist of a new issue of capital shares. The Ravi Modi Family Trust is expected to reduce its stake in the company by selling up to 18,182,432 shares.

Other shareholders like Rhine Holdings and Kedaara AIF are expected to sell 17,459,392 and 723,014 shares respectively, Financial Express reported. Vedant Fashions will not make any profit from the show as it is an SFO.

The Securities and Exchange Board of India (SEBI) had given approval to Vedant Fashions to launch the IPO on January 18. He filed the draft red herring prospectus on January 22. The company plans to list its shares on the BSE and the National Stock Exchange. (NSE) on February 16.

Only 35% of the issue will be available to retail investors, while half is reserved for qualified institutional buyers (QIBs). The remaining 15% will be available to non-institutional investors. Investors can bid in lots of 17 shares and in multiples.

IIFL Securities, Axis Capital, ICICI Securities, Edelweiss Financial Services and Kotak Mahindra Capital are acting as lead bookrunners for Vedant Fashions’ issuance, while KFintech Private Limited is its registrar.

Vedant Fashions Limited is a leading retail fashion brand selling bridal and celebratory wear. ‘Manyavar’, the company’s flagship brand, is a market leader in men’s wedding and celebratory wear. The company also owns and manages other brands such as Twamev, Manthan, Mohey and Mebaz. As of September 2021, the company had 546 exclusive outlets in India, the United States, Canada and the United Arab Emirates.

(Edited by : Thomas Abraham)

First post: STI

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