About Vedant Fashion IPO
Famous for the Virat and Anushka’s series of advertisements of cute banter, Alia Bhatt’s not-so-traditional wedding wishes, and its exquisite collection of Indian wear and Wedding collection, the Manyavar-Mohey’s Parent Company has applied for its IPO. The bidding starts on 4th Feb 2022 and ends on 8th Feb 2022. They have priced each share between a price band of Rs. 824-866. This article discusses the details of the IPO and the company profile.
About Vedant Fashion Limited
Originally incorporated in the year 2002, as “Vedant Fashions Private Limited”, the company was registered by Ravi Modi in Kolkata. Since then, its flagship brand Manyavar has managed to reach the Indian wedding and Indian celebration wear category leader. The following brands are under its outlook:
- Manyavar
- Twamev
- Manthan
- Mohey
- Mebaz
All these brands are categories of men’s and women’s ethnic and celebration wear markets.
They sell products ranging from ethnic wear, indo-western clothing styles, sherwanis, kurtas, jackets, lehengas, suits, gowns, and accessories to go with these styles. They had launched Mohey in the year 2015, which is known for its Indian Wedding and Celebration wear. In the year 2018, they acquired the one-stop heritage brand of southern India (Primarily in Andhra Pradesh and Telangana), called Mebaz. Mebaz caters to the needs of heritage and ethnic clothing for an entire family.
Biggest Highlights of the Company:
- 600+ stores in over 200 cities and 3 countries. They have 11 international stores in USA and UAE
- CRISIL named Mohey to be the biggest brand in India in the Indian Wedding and Celebration wear category according to the number of stores and its presence in India
- Its Flagship Brand Manyavar was named the Category leader under Indian ethnic, celebration, and wedding wear by the CRISIL Report of 2020.
- Production capacity of 3 million pieces per annum
- 734 employees
- 1.1 million square feet of EBO retail space across 193 cities and towns in India, and 8 cities internationally.
Details of Vedant Fashion IPO
IPO Opening Date | Feb 4, 2022 |
IPO Closing Date | Feb 8, 2022 |
Allotment Date | Feb 11, 2022 |
Initiation of Refunds Date | Feb 14, 2022 |
Shares Credit Date | Feb 15, 2022 |
Issue Listing Date | Feb 16, 2022 |
IPO Issue Type | Book Built Issue |
Price Band | ₹824-866 |
Minimum Application (Amount) | ₹14,722 |
Minimum Application (Shares) | 17 |
Minimum Application (Lot) | 1 |
Maximum Application (Amount) | ₹1,91,386 |
Maximum Application (Shares) | 221 |
Maximum Application (Lot) | 13 |
Pre IPO Promoter Holding of Shares | 92.4% |
Post-IPO Promoter Holding of Shares | 84.9% |
Market Capitalisation | 21,017.4 crore |
EPS | 10.08 |
P/E Ratio | 85.91 |
GMP | ₹45 |
Important Details To Keep in Mind before investing in Vedant Fashion Limited
- As of Feb 4, 2022, Vedant Fashion Shares are commanding ahead at a premium of ₹45 in the Grey Market
- KRChoksey believes that Vedanta Fashions Limited shall continue to grow its existing brands in their portfolio along with scouting for new opportunities. Hence KRC believes that VFL will focus to double its footprint both domestically and internationally. They continue to support their statement for a long-term capital gain by focussing on the strength of the balance sheet of Vedant Fashions Limited. They point out the assets light model of the company and the no debt aspect of Vedant’s Balance Sheet.
- Angel One believes that all the positives like an asset-light model and the no debt on its balance sheet are captured in its valuation. Hence they choose to give the IPO subscription a neutral rating.
- Choice Broking points out that the issue is extremely aggressively priced. This gives no margin to the investors. This can erode the Operating Cash Flow Margin and hence they ask the investors to subscribe with caution.
- Religare brokerage finds the valuation of the company stretched. However due to its brand positioning in the market, and the company profiles the long-term prospects of the company look promising.
Particular | 30-Sep-21 (For the year/period ended Rs. in millions) | 31-Mar-21 (For the year/period ended Rs. in millions) | 31-Mar-20 (For the year/period ended Rs. in millions) |
Total Assets | 14,455.03 | 16,256.53 | 15,915.53 |
Total Revenue | 14,455.03 | 6,250.19 | 9,479.76 |
Profit After Tax | 984.07 | 1,329.03 | 9,479.76 |
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IMAGE SOURCE: GOOGLE
