Market turmoil not to impact IPO valuation: Vedant Fashions


PTI, Jan 29, 2022, 8:50 AM IST

Kolkata: The ongoing correction in the capital market has not dented the valuation of Kolkata-based ethnic wear major Vedant Fashions’ initial public offer that aims to raise Rs 3,149 crore, a company official said on Friday.

The company, whose flagship brand is the male ethic ‘Manyavar’ label, has fixed its issue price band at Rs 824-866 a share, a company official said.

BSE Sensex has seen about 4300 point correction since early January amid highly volatile trading sessions.

The company official said the pricing was decided after feedback from institutional investors who have shown high demand interest for the shares.

The brokerage houses had initially estimated that the IPO would be about Rs 2500 crore. However, with better valuations the company is set to raise up to Rs 3,149 crore at the upper price band through it, the official said.

Vedant Fashions shares have started commanding a premium of Rs 105 over its issue price in the grey market on Friday. Its shares are expected to list on NSE and BSE on February 16.

The public issue, which will open on February 4, will be purely offer for sale (OFS) of 36,364,838 equity shares by promoters and existing shareholders, the official said.

The offer for sale comprises sale of up to 1.74 crore shares by Rhine Holdings Ltd, up to 7.23 lakh shares by Kedaara Capital Alternative Investment Fund, and up to 1.81 crore shares by Ravi Modi Family Trust.

Rationalizing the high price band, he said it is an asset-light company with zero debt despite its 546 exclusive stores. The huge growth potential in the organized celebration market will help to retain its high growth momentum.

Vedant Fashions is a pan-India player with a retail presence in over 200 cities and three countries in UAE, Canada, and the United States.

The company said it will double its overseas store floor area in the next few years.

Its ‘Manyavar’ brand accounts for about 80 percent of its revenue and the company officials said it was confident that its other newer brands will grow stronger in the years to come.

Asked about the impact of the third wave of COVID-19 on it, the company said it was minimal as the shutdown was minimal.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Five Union Ministers to campaign for BJP candidate in Brajrajnagar Assembly bypoll

Our top-order should set up games for us: KL Rahul

PM Modi arrives in Lumbini on Buddha Purnima; to hold talks with Nepal counterpart

Karnataka to send 4 elephants to UP’s Pilibhit Tiger Reserve

Active COVID-19 cases dip to 17,317

BSY’s son Vijayendra prefers to wait till BJP decides his name as MLC candidate

‘Gaali Gopura to be built atop Anjanadri hill’


Related Articles More

Paytm to file for new license, says bullish about its roadmap for general insurance

Asian shares mixed as markets eye US interest rates, prices

Paytm to file for new license, says bullish about its roadmap for general insurance

Cryptos can lead to dollarisation of economy: RBI officials to par panel

Paytm says lending biz now at annualised run-rate of Rs 20,000 cr

MUST WATCH

NEWS BULLETIN 15-05-2022

CT Ravi Statement about Congress

Thousands Witness Ancient Tulunadu Celebration of ‘Pilikola’

NEWS BULLETIN 14-05-2022

Cow Steeling at Kumta : CCTV Footage Found


Latest Additions

Register case against those involved in tying woman to pole: Meghalaya women’s panel tells police

Paytm to file for new license, says bullish about its roadmap for general insurance

Asian shares mixed as markets eye US interest rates, prices

Five Union Ministers to campaign for BJP candidate in Brajrajnagar Assembly bypoll

Our top-order should set up games for us: KL Rahul

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.