BackVedant Fashions IPO gets tepid response on Day 1
Vedant Fashions IPO update: The issue was subscribed just 14% on the first day of subscription on Friday.
PremiumThe three-day initial public offer (IPO) of Vedant Fashions Ltd, which owns and operates ethnic wear brand Manyavar, has received a tepid response from investors on Day 1. The issue was subscribed just 14% on the first day of subscription on Friday.
The IPO received bids for 35,32,872 shares against 2,54,55,388 shares on offer, according to data available with NSE.
Segment wise, the retail portion got 22% subscription, while Qualified Institutional Buyers (QIBs) quota was subscribed 6%. Non-institutional investors also got 6% subscription.
The issue, with a price band of ₹824-866 a share, will conclude on February 8. The company on Thursday said it has garnered ₹945 crore from anchor investors, ahead of its offer.
As per market observers, Vedant Fashions shares are commanding a premium (GMP) to ₹45 in the grey market today. The company's shares are expected to list on stock exchanges NSE and BSE on February 16, 2022.
The public issue is purely an offer for sale of 36,364,838 equity shares by promoter and existing shareholders. The company will raise up to ₹3,149 crore at the upper price band through the IPO.
Vedant Fashions is the one of largest companies in India in the men’s wedding and celebration wear segment. The company’s flagship brand ‘Manyavar’ is a category leader in the branded wedding and celebration wear market with a pan-India presence. Other brands of the company include, Twamev, Manthan, Mohey, and Mebaz.
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, which are countries with a large Indian diaspora.
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