Manyavar owner Vedant Fashions IPO: Know price, GMP, size, other details

Vedant Fashions will open for subscription on February 4. From IPO price to Vedant Fashions IPO GMP, here's all you need to know

Vedant Fashions, owner of ethnic wear brand Manyavar, is set to open its initial public offering (IPO) on Friday. The Rs 3,150-crore issue will be an offer for sale (OFS) by the existing shareholders and promoters of the company.

Vedant Fashions IPO dates

As per the reports, Vedant Fashions IPO will open for subscription on February 4 and it will close for subscription on February 8, 2022.

Shares of Vedant Fashions will be listed on both BSE and NSE.

Vedant Fashions IPO price band and lot size

The price band for the Vedant fashions IPO has been fixed at Rs 824-866 a share. An investor can subscribe to the IPO by betting on a lot of 17 shares and in the multiples thereof.

A bidder can apply for a minimum of one lot and maximum of 13 lots.

Vedant Fashions IPO GMP

At present, shares of the company are available at a premium of Rs 50 in the unlisted market against the upper price band, according to IPO Watch.

Investment limit

At the upper range of the price band, one lot of the IPO is worth Rs 14,722. At the upper end of the price band, the public issue is expected to fetch Rs 3,149 crore.

Issue size

The issue is entirely an offer for sale of 36,364,838 equity shares by the promoter and existing shareholders.

The OFS comprises sale of up to 17.4 million shares by Rhine Holdings Ltd; up to 723,000 shares by Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF I, and up to 18.1 million shares by Ravi Modi Family Trust.

The promoters of the company are Ravi Modi, Shilpi Modi and Ravi Modi Family Trust. The issue is entirely an OFS, which means that the company will not receive any net proceeds from the issue.

Business profile

Vedanta Fashions is one the largest Indian celebration wear market including Manyavar, Mohey, Mebaz, Manthan and Twamev.

The company’s draft red herring prospectus filed with the Securities and Exchange Board of India (Sebi) mentions that as of June 30, 2021, it had over 300 franchisees and a total of 537 exclusive brand outlets (including 55 shop-in-shops and 12 international stores).

About 90.14 per cent of sales were generated by franchisee-owned EBOs in the financial year 2021.