Vedant Fashions, the largest company in India in men's Indian wedding and celebration wear segment, has fixed issue price at Rs 866 per share, the upper end of price band, for its initial public offering. The issue price was Rs 824-866 per share.
The initial public offering (IPO) of more than Rs 3.63 crore equity shares, at issue price of Rs 866 per share, fetched the company Rs 3,149.19 crore. The public issue consisted of only one offer for sale by investors (Rhine Holdings, and Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF 1), and promoter Ravi Modi Family Trust.
Hence, all the issue proceeds will go to selling shareholders and the company will not receive IPO money.
Promoters and investors sold a total 14.98 percent equity stake through the public issue.
The company is valued at Rs 21,017.36 crore, the so-called market capitalisation, at a final issue price of Rs 866 per share.
The public issue did not receive great response from investors especially retail and non-institutional investors whose reserved portion were subscribed 39 percent and 1.07 times respectively.
The issue was mainly supported by qualified institutional buyers on the last day of subscription, February 8, whose portion was booked 7.49 times, helping the total issue get subscribed 2.57 times. The offer was opened for subscription on February 4.
Vedanta Fashions, with flagship brand 'Manyavar' and other four brands (Twamev, Manthan, Mohey, & Mebaz), offers a one-stop destination with a wide-spectrum of product offerings for every celebratory occasion.
The company generates sales through franchise-owned exclusive brand outlets (EBOs), with the remaining by multi-brand outlets (MBOs), large format stores (LFSs) and online platforms, including website and mobile application.
Also read - How can policyholders apply for the LIC public issue?
Its trading premium in the grey market fell further to zero-to-Rs 10, from earlier Rs 40-50, against issue price of Rs 866 per share, as per IPO Watch and IPO Central.
The tepid response from investors to the public issue and too much market volatility amid fear of faster tightening by central banks globally to fight inflation could be key reasons for fall in grey market premium.
The company will finalise share allotment of its IPO on Friday, February 11. Investors can check their application status online either through BSE website or the website of IPO registrar.
The funds will be refunded to unsuccessful investors by February 14 and equity shares will be credited to demat accounts of eligible investors by February 15.
The company will make its debut on the bourses on February 16, as per the details available in prospectus.
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