Vedant Fashions IPO - 7 Things to Know

Vedant Fashion IPO

by 5paisa Research Team Last Updated: 2022-12-10T16:20:35+05:30

Vedant Fashions Ltd, has announced the dates for the proposed IPO. The IPO of Vedant Fashions,  which will be entirely by way of an offer for sale and will open for subscription on 04th February 2022.

Seven Interesting Facts to know about Vedant Fashions IPO

1) The price band for the IPO is yet to be decided and is likely to be announced towards the end of this week. The IPO will offer 3,63,64,638 shares (363.65 lakhs shares) via offer for sale at a price band to be determined.

The final size of the IPO will depend on the price band set. There will be no fresh issue component in the IPO.

2) Vedant basically caters to the Indian celebration wear market and specializes in ethnic brands for men. It is like a one-stop shop where people can shop at Vedant Fashions stores for all their ethnic wear needs for all kinds of celebrations.

The price range offered is also very wide as is the variety in terms of colour, design, patterns etc.

3) Some of the leading brands of Vedant Fashions include Manyavar, Mohey, Mebaz, Manthan and Twamev. Its customer outreach is done through franchisee-owned EBOs or exclusive brand outlets.

Additionally, it also has a presence in multi-brand outlets, large format store and also on online platforms. Net margins are in the range of 20-25%.

4) Vedant Fashions IPO will open for subscription on 04-Feb 2022 and close for subscription on 08-Feb 2022. The basis of allotment will be finalized on 11-Feb while the refunds will be initiated to the bank accounts on 14-Feb.

The demat credits will happen by 15-Feb, and the stock is expected to list on the NSE and the BSE on 16-Feb. The stock with a face value of Rs.1 will be listed on the NSE and on the BSE.

5) Vedant Fashions brings some distinct advantages to the table. It has a retail footprint across 212 cities and towns covering over 1.20 million SFT area. It is a market leader in the large and growing celebration wear market in India.

It has also put in place strong omni-channel networks and has seamlessly integrated its back-end procurement and design and its front-end sales and marketing. It also has an overseas presence.

6) For the fiscal year ended March 2021, Vedant Fashions Ltd reported negative YoY growth in revenues at Rs.625.02 crore but that is more due to forced shutdowns on account of the pandemic.

Even profits halved were sharply lower at Rs.133 crore due to limited cost absorption. However, first half of FY23 has shown improved traction.

7) The Vedant Fashions Ltd IPO will be lead managed by Axis Capital, Edelweiss Financial, ICICI Securities, IIFL Securities and Kotak Mahindra Capital acting as the book running lead managers to the issue. KFintech Private Limited will be the registrar to the IPO.

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