Vedant Fashions IPO - 7 Things to Know
by 5paisa Research Team
25 Jan 2022
IPO Details
- Open Date 04-Feb-22
- Close Date 08-Feb-22
- Lot Size 17
- IPO Size ₹ 3,149.19 Cr
- IPO Price Range ₹ 824 to ₹866
- Min Investment ₹ 14008
- Listing Exchange NSE, BSE
- Basis of Allotment 11-Feb-22
- Refunds 14-Feb-22
- Credit to Demat Account 15-Feb-22
- Listing Date 16-Feb-22
Vedant Fashions Ltd IPO Subscription Status
| QIB | NII | Retail | Employee Reservation | Shareholder Reservation | TOTAL | |
|---|---|---|---|---|---|---|
| Day 1 | 0.66x | 0.06x | 0.22x | N.A | N.A | 0.14x |
| Day 2 | 0.11x | 0.09x | 0.31x | N.A | N.A | 0.21x |
| Day 3 | 7.47x | 1.09x | 0.39x | N.A | N.A | 2.57x |
IPO Synopsis
IPO synopsis:
The Kolkata based ethnic wear company, Vedant Fashions, the owner of the Manyavar brand filed a DRHP with SEBI. The IPO is entirely an offer for sale of up to 36,364,838 equity shares which are being offloaded by promoters and shareholders namely, Rhine Holding Ltd, Kedaara Capital Alternative Investment Fund- Kedaara Capital AIF I and Ravi Modi Family. The issue opens on February 4, 2022 and closes on February 8, 2022. The date of allotment is set for February 11, 2022 and the listing date is set for February 16, 2022.
The promoters of the company are Ravi Modi, Shilpi Modi and Ravi Modi Family Trust.
The book running lead managers to the issue are IIFL Securities Ltd, ICICI Securities Ltd, Edelweiss Financial Services Ltd, Axis Capital Ltd and Kotak Mahindra Capital Company Ltd.
Objective of the offer:
The main aim of the issue is the offloading of the equity shares and to achieve the benefits of being listed on the stock exchanges.
About Vedant Fashions Ltd
Vedant Fashion Pvt Ltd is the largest company in the country in the men’s Indian wedding and celebration wear segment. This is in terms of revenue, EBITDA and PAT in FY20. Their Manyavar brand is a leader in the branded Indian wedding and celebration wear market. They provide a wide array of products for every celebratory occasion and their main aim is to provide a seamless yet aristocratic purchase experience through their exclusive brand outlets. They launched a women’s wedding and celebration brand in 2015 called Mohey. In 2018, they acquired Mehbaz, a legacy brand which caters to the entire family with a rich heritage and they have established a presence in Andhra Pradesh and Telangana. Vedant Fashions has three brands for men- Manyavar, Twamev (2019) and Manthan and 1 brand for women- Mohey.
As of 30 June, 2021, the company had 525 EBOs across 207 cities and towns in the country. They also have 12 EBOs overseas in USA, Canada and the UAE. In 2011, the first EBO was set up in UAE. Now, as of 30 June, 2021 the company has 6 stores in UAE, 5 stores in USA and 1 store in Canada, with an average retail store space of 24,000 square feet. They also have a large e-commerce platform where the customers can place their orders online. They also have a QR code enabled catalog, so that the customers can select their products of choice from the entire array of products offered by them.
In FY21 the EBOs generated 44.22% of the total sales. As on 30 June, 2021, 70% of the franchisees have been operational for three years or more. The company has 399 vendors registered on their vendor portal.
Vedant Fashions Ltd Financial Status
Profit and Loss
Balance Sheet
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Revenue | 564.8 | 915.5 | 800.7 |
| EBITDA | 281.7 | 398.8 | 337.9 |
| PAT | 132.9 | 236.6 | 176.4 |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Total Assets | 1625.7 | 1625.7 | 1318.5 |
| Share Capital | 24.8 | 25.0 | 25.0 |
| Total Borrowings | 0 | 0 | 0.002 |
Peer Comparison
| Company(FY 20) | Operating Income | EBITDA | PAT | Net Profit margin | ROCE | Inventory Days |
|---|---|---|---|---|---|---|
| Vedant Fashions | 918.2 | 396.6 | 236.6 | 26.00% | 41.00% | 85 |
| NSSPL | 577.2 | 50 | 26.6 | 5.00% | 29.00% | 51 |
| RPL | 286.6 | 14.6 | -14 | -5.00% | -5.00% | 133 |
| NEPL | 181 | 70 | -9 | -5.20% | 1.90% | 269 |
| JCPL | 35.5 | 2 | 2 | 1.00% | 32.00% | 189 |
IPO Key Points
-
Strengths
1.Manyavar is the leading brand in the Indian wedding and celebration market in FY20 and Vedant Fashions was also hailed as the largest company in the men’s Indian wedding and celebration market in FY20. They also have a very diversified portfolio of various brands which cater to the entire family
2.They have a very strong business model which is the amalgamation of physical retail stores and an omni-channel network
3.They have a strong supply chain and inventory replacement system which is technology based and is driven by system wide data analytics
4.Their founding and leadership team is very experienced and efficient, with a rich functional experience in the consumer, apparel and retail industry -
Risks
1.The business of Vedant Fashions is highly concentrated in the Indian wedding and celebrations sector and hence the company is very vulnerable to any changing customer preferences
2.Failure to maintain the strength of the key brands will lead to decrease in business prospects and will materially affect the business
3.If the new products launched by Vendant fashions are not well received by the public, it will adversely affect the business and financials
4.A large portion of the sales are from the franchisee owned EBOs and thus if good long term relationships are not maintained, it can be very detrimental to the company
How to apply for IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked
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IPO FAQs
What is the issue size of Vedant Fashion IPO?
The issue size of Vedant Fashion IPO is ₹ 3,149.19 Crore.
Who is the registrar to Vedant Fashions IPO?
The registrar to Vedant Fashions IPO is KFintech Private Limited.
When does the Vedant Fashions IPO issue open and close?
Vedant Fashions IPO will open on 4th February 2022 and close on 8th February 2022.
What is the lot size and minimum order quantity of Vedant Fashions IPO?
The lot size and minimum order quantity of Vedant Fashions IPO is 17.
What is the minimum investment amount for Vedant Fashions IPO?
The minimum investment amount for Vedant Fashions IPO is ₹ 14,008.
What is the allotment date for Vedant Fashions IPO?
The allotment of Vedant Fashions IPO is likely to take place on 11th February 2022.
What is the listing date of Vedant Fashions IPO?
The listing date of Vedant Fashions IPO is 16th February 2022.
What is the price band of Vedant Fashions IPO?
The price band of Vedant Fashions IPO is ₹ 824 to ₹866.
Who are the promoters/key personnel of Vedant Fashions?
The promoters of Vedant Fashions are Ravi Modi, Shilpi Modi and Ravi Modi Family Trust.
Who are the book-runners for Vedant Fashions IPO?
The lead managers to Vedant Fashions IPO are IIFL Securities Ltd, ICICI Securities Ltd, Edelweiss Financial Services Ltd, Axis Capital Ltd, and Kotak Mahindra Capital Company Ltd.
What is the objective of Vedant Fashions IPO?
Vedant Fashions IPO's objective is to realise the benefits of being listed on NSE and BSE and offload up to 36,364,838 equity shares by shareholders like Rhine Holding Ltd, Kedaara Capital Alternative Investment Fund- Kedaara Capital AIF I, and Ravi Modi Family.
How to apply for the Vedant Fashions IPO?
To apply for Vedant Fashions IPO, follow the steps mentioned below:
- Login to your 5Paisa account and visit the IPO section.
- Choose Vedant Fashions IPO from the list of 'Current IPO.'
- Enter the lot(s), price and your UPI ID and hit the 'Submit' button.
- Approve the mandate notification on your UPI app.
- Your bid is received. You can check the allotment status on the allotment date.
Which products are manufactured by Vedant Fashions?
Vedant Fashions is a leading manufacturer of men's ethnic and celebration wear garments, including sherwanis, kurtas, jackets, and the like.
What is the business value of Vedant Fashions?
Vedant Fashion's flagship store chain under the name 'Manyavar' has a retail presence in more than 200 cities in India and 11 places in the U.S.A and U.A.E. It has over 600 stores.
Who are the competitors of Vedant Fashions?
Monte Carlo, Samtex Fashions, Kitex Garments, Zodiac Clothing are some competitors of Vedant Fashions.
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