Vedant Fashions Makes Strong Market Debut, Lists 8% Higher Than IPO Price

Vedant Fashions, parent of Indian ethnic wear brand maker - Manyavar, Mohey, Manthan and Tvamev, made a strong stock market debut on Wednesday. Vedant Fashions shares opened for trading at Rs 936, up Rs 70 or 8.08 per cent from its initial public offering (IPO) price of Rs 866. On the National Stock Exchange, Vedant Fashion shares opened at Rs 935 on the National Stock Exchange, marking an upside of 7.97 per cent from its issue price. The stock rose as much as 9.68 per cent to hit an intraday high of Rs 949.90. 

Manyavar IPO saw good response from qualified institutional buyers (QIBs), which include banks, financial institutions and insurance companies, as the portion reserved for them was subscribed 7.49 times. Portion set aside for non institutional investors was subscribed 1.07 times while retail investors did not show much enthusiasm to the IPO. In total the IPO was subscribed 2.57 times, data from the National Stock Exchange showed.

Vedant Fashions raised Rs 3,149 crore via IPO and sold shares in the price band of Rs 824-866 per share. A retail investor was allowed to invest in the IPO by placing a bid of minimum one lot of 17 shares up to maximum of 13 lots. At the upper end of the price band, cost of one lot of Manyavar shares was Rs 14,722.

Manyavar's IPO was purely an offer for sale wherein its existing promoters - Ravi Modi, Shilpi Modi and Ravi Modi Family Trust sold 36,364,838 equity shares of face value of Rs 1 each.

The OFS comprised sale of up to 1.74 crore shares by Rhine Holdings Ltd; up to 7.23 lakh shares by Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF I; and up to 1.81 crore shares by Ravi Modi Family Trust.

As of September 2021, the company had 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.

Axis Capital, Edelweiss Financial Services, ICICI Securities, IIFL Securities and Kotak Mahindra Capital were the book-running lead managers to the issue. 

As of 10:05 am, Vedant Fashions shares traded 7.4 per cent higher at Rs 930.