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The three day initial public offering (IPO) of Vedant Fashions Limited, which owns ethnic wear brand Manyavar, opened on February 4 and was subscribed 14% on the first day of subscription on Friday. The price range for the offer is 824-866 per share and the issue will conclude on February 8.

As of 12 pm on day 1, Vedant Fashions IPO has been subscribed 0.17 times with retail investors' category booked 0.27 times, NIIs 0.07 times and QIBs 0.06x, BSE data showed.

The initial share sale is purely an offer-for-sale of 3,63,64,838 equity shares by the promoters and existing shareholders. Meanwhile, the company has garnered 945 crore from anchor investors ahead of its offer. At the upper end of the price band, the public issue is expected to fetch 3,149 crore.

As per market observers, Vedant Fashions shares are commanding a premium (GMP) to 16 in the grey market today. The company's shares are expected to list on stock exchanges NSE and BSE on February 16, 2022.

Vedant Fashions' 'Manyavar' brand is a category leader in the branded Indian wedding and celebration wear market with a pan-India presence. The company's other brands include Twamev, Manthan, Mohey, and Mebaz.

“VFL has strong balance sheet with no debt and it has asset light model. Considering these positives, we recommend to “subscribe for long term gains"," said KRChoksey in an IPO note.

As of September 2021, the company has an extensive retail network with 546 exclusive brand outlets (EBOs) including 58 shop-in-shops globally, including 11 overseas EBOs across the United States, Canada and the UAE.

“Vedant is well placed to benefit from growing industry trends given its leadership position in the Indian celebration wear market.. While the valuations look stretched, the company's long term growth prospects remain promising," said brokerage Religare Broking in a note.

 

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