The second mainline IPO of the year 2022 is here. Vedant Fashion, popularly known as “Manyavar”, is a brand that made wedding attire for grooms easy to find. Vedant fashion is also to open its window for the subscription of its IPO to raise a whopping amount of Rs 3149.19 crores.
As per the reports of CRISIL, for the financial year 2020, Vedant Fashions is the largest company in India in the men’s Indian wedding and celebration wear segment in terms of revenue, OPBDIT, and profit after tax. For the same year, Crisil also reported Manyavar’s brand is a category leader in the branded Indian wedding and celebration wear market with a pan-India presence. The firm’s portfolio of products includes a diverse range of attires and accessories, each conceptualized by our designers who have experience in serving the distinct regional preferences of the Indian customer.
Manyavar has an omnichannel presence. It is available to end customers:
- Franchise-owned exclusive brand outlets (our “ebos”),
- Multi-brand outlets (“mbos”),
- Large-format stores (“lfss”),
- Online platforms, including website (www.manyavar.com) and mobile applications.
- Industry: Retail
- IPO Size: 3149.19cr
- Offer for Sale: Rs3149.19cr
- Price Band: Rs824-866
- Issue Open Date: 4 Feb 2022
- Issue Close Date: 8 Feb 2022
- Listing Date: 16 Feb 2022
- Minimum Lot Size: 17 Shares
- Face Value: Re 1
- Listing Exchange: NSE, BSE
- Min. Investment- -14,722
- Max. Investment: –191,386
- QIB: 50%
- Retail: 35%
- HNI: 15%
The IPO consists of an offer for sale of 36,364,838 equity shares, thus the company will not be getting any proceeds from the same. The only aim of the IPO is to get the benefit of the listing on the stock exchange.
In this IPO following shareholders will sell their shares:
- Rhine Holdings Limited- 17,459,392 equity shares
- Kedaara Capital Alternative Investment Fund-Kedaara Capital Aif- 723,014 shares
- Ravi Modi Family Trust-18,182,432 shares
Axis Capital Limited, Edelweiss Financial Services Limited, ICICI Securities Limited, IIFL Securities Limited, Kotak Mahindra Capital Company Limited are acting as lead managers of the IPO and Kfintech is the registrar.
In the year 2020, the firm ticked a profit of Rs 2366.76million, up by 34.12% from Rs 1764.27 million earned in Fy2019. However in the year FY2021 firm did report a profit of Rs1329.03 million, down by 4.3% at Rs1329.03 million. Covid and restriction on weddings played a major role in pushing the profit of the company down.
Manyavar has established a multi-channel network and introduced brands by identifying gaps in the under-served and high-growth Indian wedding and celebration wear category. Further, it has no major competitors in the same category which serves as one of the biggest advantages for the firm. The company also has some solid financial backing with reliable numbers, which makes Vedant Fashion a trustable company to invest in.
However, an investor must do their research before investing in the market, as markets are b=subject to uncertain risk. To know more about Vedant fashion, visit invest19.com