Manyavar parent Vedant Fashions falls below issue price for first time since listing this month

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Shares of Vedant Fashions Ltd on Tuesday fell below the issue price for the first time.

At 10.33am, the stock was trading at Rs 848 on BSE, down 4% from its previous close.

The stock listed on 16 February with listing gains of 8% from its issue price of Rs 866 a share. The scrip hit a high of Rs 993 on listing day and has declined nearly 16.11% since.

The firm saw a muted initial public offering that got subscribed nearly 2.57 times. The firm raised around Rs 3,150 crore via share sale.

Vedant Fashions is a Kolkata-based ethnic wear maker. Its flagship brand is the male ethic brand Manyavar and other brands include Twamev, Manthan, Mohey and Mebaz. Manyavar is a leader in branded Indian wedding and celebration wear market with a pan India presence.

The issue price of the stock was valued at 52x EV/EBITDA and 92x P/E on FY20 figures. The firm demanded valuation at price to sales of 29.2x on FY22 annualised sales which analysts said was very expensive.