Manyavar-owner Vedant Fashions IPO: What GMP signals as issue opens this week

As per market observers, Vedant Fashions shares premium (GMP) has slipped to ₹45 in the grey market today. The company’s shares are expected to list on stock exchanges NSE and BSE on February 16, 2022.

“Vedant Fashions revenues have largely been affected by the pandemic however, 6MFY22 performance shows recovery amid re-opening and we believe the next six months performance will be significant. The valuations looks expensive leaving nothing for investors on table. The primary market sentiments have nosedived amid global sell off. Owing to the expensive pricing, the charm looks lacking for the issue,” said Abhay Doshi, founder at Unlisted Arena.

The public issue is purely an offer for sale of 36,364,838 equity shares by promoter and existing shareholders. The OFS 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-Kedaara Capital AIF I, and up to 1.81 crore shares by Ravi Modi Family Trust.

Vedant Fashions Limited is the one of largest companies in India in the men’s wedding and celebration wear segment. The company’s flagship brand ‘Manyavar’ is a category leader in the branded wedding and celebration wear market with a pan-India presence. Other brands of the company include, Twamev, Manthan, Mohey, and Mebaz.

As of September 2021, the company has 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.