The initial public offering (IPO) of Vedant Fashions, best known for its Manyavar brand of wedding and celebrations wear, has got a muted response, with the issue subscribed 21 percent on February 7, the second day of bidding.
Investors bid for 52.37 lakh equity shares against the IPO size of 2.54 crore units.
Retail investors remained ahead by buying 31 percent of their allotted quota, while the portions set aside for qualified institutional buyers and non-institutional investors were subscribed 11 percent and 9 percent respectively.
Incorporated in 2002, Kolkata-headquartered Vedant Fashions operates its wedding and celebrations wear business through omni-channel network of 546 exclusive brand outlets (EBOs), 825 multi-brand outlets (MBOs), 145 large format stores (LFS) and through online platforms.
Also read: Vedant Fashions IPO: Should you subscribe to the issue?
It has multi-brand product portfolio which includes Manyavar, Twamev, Manthan, Mohey, and Mebaz. Manyavar brand is a category leader in the branded market with a pan-India presence.
The company aims to mobilise Rs 3,149.2 crore through the issue at the upper end of the price band of Rs 824-866 a share. It has already mopped up Rs 944.75 crore from anchor investors .
The objective of the issue is to carry out the sale of up to 3.63 crore shares, hence the company will not receive any money from the offer.
"We like Vedant Fashions' focus on growth by doubling its foot print in both domestic as well as international market in near term," said KRChoksey Research.
Also read: Vedant Fashions IPO: 10 key things to know before subscribing issue
In India, the company plans to enter new cities, open more stores and expand in existing markets.
In the international market, the company has plans to enter new countries that have Indian diaspora and expand in the countries where it has business.
"The company’s strength lies on four key pillars that it has built over last 20 years which act as entry barriers 1) supply chain and vendor management 2) inventory management 3) understanding customer preference and 4) robust distribution model,” KR Choksey Research said.
It has a strong balance sheet with no debt and it has an asset-light model. “Considering these positives, we recommend to subscribe for long-term gains," he said.
Click Here To Read All IPO Related News
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
