Vedant Fashions ltd IPO: All you need to know

Vedant Fashion Limited is India’s largest men’s wedding and celebration wear company. The brand is titled ‘Manyavar’. We are now able to observe the listing of the company among the Indian stock exchanges, where after years seeing Virat Kohli, Aliaa Bhatt, Amitabh Bachchan, Kartik Aaryan, Anushka Sharma and Ranveer Singh celebrating Indian weddings in television ads in Manyavar traditional ensemble. However, now this can also be a call out for investors to draw up for the schedule of Vedant Fashions, which is well known for its brand ‘Manyavar’. In 1999, Ravi Modi introduced Vedant Fashion – he was a family man, who owns a garment store in Kolkata. Later he realised that; in India there is no major leaguer in the men ethnic wear market. By this assumption, Ravi at the age of 22 initiated the ethnic wear brand ‘Manyavar’ with a start-up fund of Rs 10,000/-. Following in time, the company had great growth through acquisition of an omni-channel network.

However, today the country India owns 525 exclusive brand outlets like Manyavar. All these companies sell their traditional wear through wide format stores, online platforms and via multi-brand outlets. Read the complete article for detailed knowledge on Vedant Fashions.

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All about IPO

• After the establishment of a men’s ethnic wear retailer, the Vedant Fashions has modified its sales and offerings. The brand ‘Manyavar’ worked on men’s mid-premium ethnic wear division. Meanwhile, in 2015 a new mid premium ethnic wear brand ‘ Mohey’ was launched for women.
• The company also holds the brand ‘Mebaz’ in South India, which is for men, women and kids. It has also introduced its supremacy in the premium and value division of the men’s wedding and celebration market through brands like Manthan and Twameva. The company via these brands offers ethnic wear at varying price points (from value to premium).
• The company also has 12 EBOs across the UAE, Canada and the United States (companies having large Indian displacement) apart from owning outlets across 207 towns and cities of India.

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Vedant Fashions ltd IPO – Essential Details

Refer the essential points given below for an understanding;

1. The Vedant Fashions IPO subscription will open on Friday, February 4.
2. The Vedant Fashions IPO subscription will close on Tuesday, February 8.
3. The IPO Vedant Fashion price range has been fixed at Rs 824-866 per share.
4. All the investors can subscribe to Vedant Fashions going head one lot of 17 shares or multiples. One lot of the IPO worth Rs 14,722/-, at the upper side of the price range. A retail bidder can propose a maximum of 14 lots.
5. The Vedant Fashions serves the celebration wear market of India with a distinct portfolio of brands such as Mohey, Manthan, Twamev, Mebaz and Manyavar. Vedant Fashion is titled as the captain of branded Indian wedding and celebration wear market by pan India presence, working through franchise-owned exclusive brand outlets (EBOs).
6. From September 2021 on, the company had a considerable retail network of over 546 EBOs, counting from 58 shop-in-shops globally, 11 foreign EBOs across the United States, UAE and Canada having substantial Indian emigration. However, as of September in India the company’s EBOs network reaches 212 cities and towns and has a retail footprint of 1.2 million Sq feet.
7. The concern is absolutely an offer for sale (OFS) of 36,364,838 fair shares of value Rs 1 each by the upholders and existing shareholders constituting Rs 3,149,13 Crore, at the upper price range.
8. The offer for sale (OFS) takes in up to 1.74 Crore shares Rhine Holdings Ltd. Up to 7.23 Lakh shares by Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF I, and by Ravi Modi Family Trust up to 1.81 Crore shares. Ravi Modi, Ravi Modi Family Trust and Shilpi Modi are the promoters of the company. The issue is completely an OFS; that means the company will not get any net profits from the issue.
9. The Vedant Fashions IPO quota for retail investors is fixed at 35 percent of the net offer. Where the QIB quota is fixed at 50 per cent and the NII quota is fixed at 15 per cent.
10. There is no quota reserved for the workers of the company.
11. The finalisation on the basis of allotment is expected by February 11. On 14^th February the initialisation of refunds will likely take place. While the share credits in the Demat account will happen on 15^th February.
12. The Vedant Fashion assured to make its market launch on 16^th February.
13. The proposers can check the status of subscription on the online portal of Kfin Technologies India Private Ltd, register to the IPO.
14. The book running lead managers to the issue are Edelweiss Financial Services, Axis Capital, Kotak Mahindra Capital, IIFL Securities and the ICICI Securities.
15. It is recorded that, a profit of Rs 98.41 in the six-month period came to an end September 2021 against a loss of Rs 17.64 Crore in the corresponding period last revenue. Proceeds from workings during the same period increased outstandingly from Rs 71.7 Crore to Rs 359.84 Crore.

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What are the Risk Factors?

• The Vedant Fashions ltd (VFL) mainly depends on a single voluntary product division (Indian wedding and celebration wear). Demand for its products will be depending on the number and volume of weddings. However, with the rapid changing customer choices, the company’s business is characterized based on.
• The company’s business will get affected, if they fail to maintain the reputation and recognition of their
• Vedant Fashions contracts out a notable proportion of its production activities and process to the third party. Any drop off or error in performance of third parties can impact Vedant Fashions ltd business.

Ways to Apply for Vedant Fashions ltd IPO

Follow the steps given below for applying VFL;

1. Existing PL Client: By using the E-IPO facility and UPI ID, you can proceed to book Vedant Fashion ltd IPO shares. Confirm your payment on the UPI app and make sure you block the amount for allotment.
2. New Demat Account: If you are new, open your Demat account.

As per the Credit Rating Information Services of India Limited (CRISIL); the brand wedding wear market of India is supposed to grow at a CAGR of 18-20% to attain Rs 8.2 lakh crore by FY25. This is because of an increase in the serviceability of brands to celebratory occasions and discretionary income. Vedant Fashions  continues to expand in domestic and international markets sector.. The company’s goal is to creep into the existing markets and to investigate inorganic growth scope. However, because of the mass competition from local retailers, non-branded products and from online retailers, it is hard to balance margins. Although VLF’s business highly focuses on wedding and celebration wear, which is vulnerable to demand deflection.

The company has yet not obtained much interest in the grey market. Vedant Fashions ltd is operating at a premium of Rs 40-45 in the unofficial sector. So always make a conclusion after understanding the risk associated.

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