scorecardresearchMarket Debut: Vedant Fashions lists at ₹935 on NSE, 8% premium against

Market Debut: Vedant Fashions lists at 935 on NSE, 8% premium against issue price

Updated: 16 Feb 2022, 10:29 AM IST
TL;DR.

The stock listed at 935 on NSE, a 7.9 percent premium against its issue price of 866. On BSE, the stock listed at an 8 percent premium at 936 per share.

Vedant Fashions IPO

Vedant Fashions IPO

Manyavar-parent Vedant Fashions made a strong debut on the bourses today. The stock listed at 935 on NSE, a 7.9 percent premium against its issue price of 866. On BSE, the stock listed at an 8 percent premium at 936 per share. 

The IPO, which was open for subscription between February 4-8, was subscribed 2.6 times.

The company aimed to raise 3,149 crore through the IPO at the upper end of their price band of 824-866 per share. It has already raised 944.75 crore from anchor investors ahead of the IPO.

The IPO was entirely an offer for sale (OFS) for 3.63 crore shares by existing shareholders and promoters of the firm.  The OFS comprised the sale of up to 1.81 crore shares by Ravi Modi Family Trust, 1.74 crore shares by Rhine Holdings and 7.23 lakh shares by Kedaara Capital Alternative Investment Fund.

The objective of the issue was to scoop the advantages of listing on the stock exchanges. It expects the listing to enhance the firm's brand image and increase liquidity.

While most brokerages believe the firm's financial performance has been satisfactory despite the pandemic and the wedding wear market will only continue to rise, the issue price still seemed expensive to them.

Incorporated in 2002, Vedant Fashions is a Kolkata-based ethnic wear firm with 5 brands under its umbrella including its flagship brand Manyavar. It also houses Mohey, Mebaz, Manthan and Twamev.

According to the red herring prospectus, "Vedant Fashions has a pan-India retail presence and in three other countries – UAE, Canada and the US. As of September last year, the company has an extensive retail network with 546 EBOs or exclusive brand outlets (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."

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First Published: 16 Feb 2022, 10:01 AM IST