In this article
- IPO details
- Offer break-up
- IPO Object
- IPO Strengths
- Key Risks
- Vedant Fashions Limited Company Finance
Market leader in men’s Indian wedding wear, Vedant Fashion is well-known for its menswear brand Manyavar, which accounts for 80% of its revenues. The company’s other brands include money, Mebaz, Manthan, and Twamev. The company conducts its business through franchise-led brand outlets (EBOs), multi-brand stores (MBOs), supermarkets (LFSs), and online forums, including its website and mobile app. Vedant Fashions has a retail presence in over 210 cities within India and three countries in UAE, Canada, and the United States. As per the company, it plans to double its overseas store floor area in the next few years and is confident that its other newer brands will grow stronger in the years to come.
The promoters of the company are Ravi Modi, Shilpi Modi, and Ravi Modi Family Trust. The OFS comprises the sale of up to 1.74 crore shares by Rhine Holdings Ltd, up to 7.23 lakh shares by Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF I, and up to 1.81 crore shares by Ravi Modi Family Trust.
- IPO open from: 4thFeb –8thFeb 2022
- Face value: ₹1
- Price Band: ₹824-866
- Market Lot: 17shares
- Minimum Investment: ₹14,722
- Listing on: BSE and NSE
- Fresh Equity Issue: up to ₹0crores
- Offer for sale: up to ₹3,150crores
- Promoters: Ravi Modi, Shilpi Modi and Ravi Modi Family Trust are the company promoters
- Book running lead managers: Axis Capital Limited, Edelweiss Financial Services Ltd, ICICI Securities Limited, IIFL Securities Ltd, Kotak Mahindra Capital Company Limited
The offer is broken up into the following investor classes:
- Offer for Sale (OFS) ₹3150 Crores: Under this OFS, shareholders would sell their shares and the company would not receive any part from IPO proceeds.
- And to achieve the benefits of listing the Equity Shares on the Stock Exchanges.
- Market Leader: The Company’s ‘Manyavar’ brand is a category leader in the branded Indian wedding and celebration wear market with a pan-India presence.
- Growing Market: According to CRISIL, the men’s Indian wedding and celebration wear market was estimated to be worth approximately ₹ 133 billion as of FY 2020, and is projected to increase to ₹ 180 billion by FY 2025.
- Omni-Channel Network: Vedant Fashions operates an Omni-channel network and engages with the customers through an integrated platform serviced by online and offline channels.
- Strong Supply Chain: Innovation-based strong supply chain and inventory renewal framework driven by system-wide data analytics and they maintain longstanding merchant connections.
- Risk of Changing in Consumer Preferences: The Company’s business is exceptionally focused on Indian wedding and festivity wear and any change in consumer preferences could adversely affect the business.
- Production concentrated in one region: Company’s warehouse and factory are concentrated in a single region – around Kolkata, exposing the company to regional risks.
- The significant level of dependence on third parties for production: Any slowdown, shutdown, or disruption at third parties’ operations and performance, could unfavorably impact its business.
- Highly competitive market: Several local brands and unorganized retailers are present in markets across the country and pricing pressure from competitors may affect the revenue of the business.
- IPO proceeds will not go to the company: Since it is an OFS, all the money from IPO will go to the selling shareholders not benefitting the company in any way.
|(₹ in crores)||6M Ended 30-Sep-21||Year Ended 31-Mar-21||Year Ended 31-Mar-20|
|Profit After Tax||98||133||236|