The Kolkata-based ethnic wear brand Vedant Fashion Pvt Ltd, the owner of Manyavar had filed draft papers with the Securities And Exchange Board Of India (SEBI) to raise funds through an IPO. Recently it has received the go ahead signal from SEBI to start the issuance of Vedant Fashions IPO.
The report that was sent to SEBI indicated that the IPO was likely to raise nearly Rs 2,500 crores and would initially comprise an offer for sale (OFS) element to facilitate a partial exit for the existing investors.
Details About The Vedant Fashion IPO
The Vedant Fashions IPO will begin on February 4 and will end on 8 February as per the RHP (red herring prospectus). This is a pure OFS (offer to sale). The Vedant Fashions IPO size is 3,63,64,838 equity shares by the existing and promoting shareholders. The Vedant Fashions share price is yet to be declared.
The OFS consists of the 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. The total Vedant Fashions valuation is estimated to be nearly Rs 3,275 crore.
The Vedant Fashions owners include Shilpi Modi, Ravi Modi, and Ravi Modi Family Trust. Since the IPO is completely an offer for sale, the entity will not get any proceeds from the public issue. The entity, which filed its prelim IPO papers with SEBI in September 2021, received its observation letter on January 18. In the SEBI statement, its observation indicates its approval to release the IPO.
Vedant Fashions‘ “Manyavar” segment is a leader in the branded Indian wedding and celebration wear industry with a pan India establishment. The other brands of the company include Manthan, Mohey, Twamev, and Mebaz.
As of September 2021, the brand had an extensive retail network along with 546 exclusive brand outlets (EBOs), that included 58 shop-in-shops across the globe where 11 are overseas EBOs across the Canada, the United States, and the UAE, having a big Indian diaspora.
In India, the EBO network of the company ranges in 212 cities and towns as of September 2021. In an official statement, the company stated,
Axis Capital, ICICI Securities, Edelweiss Financial Services, IIFL Securities, and Kotak Mahindra Capital are the book running lead managers to the issue.
Who Will Be The Listed Peers Of Vedant Fashions?
Vedant Fashions does not have a virtuous play listed peers in the ethnic wear segment but some of the listed firms in the clothing and apparel segment in India include Aditya Birla Fashion & Retail, SP Apparels, TCNS Clothing, Zodiac Clothing & VIP Clothing. By the way, Aditya Birla Fashion & Retail which considers Flipkart as an investor, has lately struck deals with ace designers Tarun Tahiliani and Sabyasachi with an eye on the ethnic wear sector.
The Vedant Fashions Limited has had a strong collaboration with both Bollywood and cricket. It has sponsored IPL teams Delhi Daredevils, Kolkata Knight Riders, and Sunrisers Hyderabad and tethered in movie stars like Alia Bhatt, Ranveer Singh, Amitabh Bachchan for its advertisements & promotional drives. Its ad featuring brand ambassadors Virat Kohli & Anushka Sharma before their high-profile wedding in 2017 had received immense fame.
Vedant Fashions Pvt Ltd which is the owner of the ethnic wear brand Manyavar will witness its IPO. The Vedant Fashions IPO date has been scheduled for 4th February which will be closing on 8th February. The firm received consent from SEBI on January 18 to proceed with its initial public offering. The company also has plans to list it on the exchange on February 16, 2022.