Vedant Fashions sets price band of Rs 824-866 a share for its IPO

Vedant Fashions Ltd, which owns ethnic wear brand Manyavar, has fixed its price band at Rs 824-866 a share for its initial public offering (IPO). The firm earlier said that its IPO will open on February 4 and close on February 8.

On January 18, the company got Securities and Exchange Board of India (SEBI) nod to float IPO and filed a red herring prospectus with ROC on January 22. The company plans to list on exchanges on February 16.

Vedant Fashions had filed draft papers with the SEBI in September 2021. The issue comprises a pure offer for sale (OFS) of up to 36.36 million shares by its existing promoter and shareholders.

The OFS has up to 17.46 million shares by Rhine Holdings Ltd; up to 723,000 shares by Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF I; and up to 18.18 million shares by Ravi Modi Family Trust.

On the upper end price band, Vedant Fashions plans to raise around Rs 3149.19 crore via IPO.

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Currently, Rhine Holdings has a 7.2 percent stake in the company, Kedaara AIF holds 0.3 percent stake while the Ravi Modi Family Trust has 74.67 percent stake.

Axis Capital, Edelweiss Financial Services, ICICI Securities, IIFL Securities and Kotak Mahindra Capital are the book running lead managers to the issue.

Vedant Fashions is in the men's Indian wedding and celebration wear market. Its Manyavar brand is a category leader in the branded Indian wedding and celebration wear market with a pan India presence. Other brands of the company include Twamev, Manthan, Mohey and Mebaz.