The initial public offering (IPO) of Manyavar-parent Vedant Fashions has received a muted response. The issue has been subscribed 48 percent on February 8, the third day of bidding.
Investors have placed bids for 1.2 crore equity shares against the IPO size of 2.54 crore units till now.
As of 1:00 pm, qualified institutional buyers subscribed the most, 100 percent or 1 time of their allotted quota. Meanwhile, Retail investors bid for 34 percent of their reserved portion and non-institutional investors for 10 percent of their quota.
The company aims 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 objective of the issue is 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 seems 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."
