Vedant Fashions IPO (Manyavar IPO) : Key Highlights

Vedant Fashions is involved in the fashion business. The company caters its business in exclusive ethnic wear. The company’s famous brands involve – Mebaz, Twameva, Mohey, Manthan and Manyavar. The company has been leading the Indian Men’s Fashion Industry in terms of its profits and revenue. The company generates its revenue through four modes of business. The first one is the franchise business, second form of business is multi-brand outlets, next up is Large format stores and the final one is sales through its online portal (www.manyavar.com). The company also has its brand outlets in the USA, UAE and Canada.

IPO DETAILS

Vedant Fashions IPO (Manyavar IPO) is set to launch on 4th Feb, 2022. The subscription timeline extends till 8th Feb, 2022. The size for the IPO is 3149.19 Crore Rs.. No Shares are issued through Fresh Issue. Shares issued through Offer for Sale are worth Rs. 3149.19 Crore. The lot size is 17 shares and the price range is 824 Rs. – 866 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Re. 1 and this is a book built issue. The registrar for the company is Karvy Fintech Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	4th Feb, 2022
CLOSING DATE FOR IPO	8th Feb, 2022
ISSUE TYPE	Book Built Issue
Face Value per share	1 Re. per share
IPO price band	824 Rs. – 866 Rs.
LOT SIZE	17 shares
MINIMUM ORDER QUANTITY	17 shares
ISSUE SIZE	3149.19 Crore Rs.
OFFER FOR SALE	3149.19 Crore Rs.
FRESH ISSUE	No shares for fresh issue
LISTING AT	NSE, BSE
LISTING DATE	16th Feb, 2022

IMPORTANT DATES

IPO OPENING DATE	4th Feb, 2022
CLOSING DATE FOR IPO	8th Feb, 2022
IPO ALLOTMENT DATE	11th Feb, 2022
REFUNDS	14th Feb, 2022
DEMAT A/C CREDITED ON	15th Feb, 2022
IPO LISTING DATE	16th Feb, 2022

Vedant Fashions IPO (Manyavar IPO) begins for subscription from 4th Feb, 2022. The IPO subscription would continue till 8th Feb, 2022. The allotment status for the shareholders who applied would come on 11th Feb, 2022. The refunds for the ones who did not get allotment would be initiated on 14th Feb, 2022. The DEMAT accounts of shareholders would be credited on 15th Feb, 2022. The listing of the company would be accompanied on 16th Feb, 2022.

Lead Managers And Promoters

The promoter of the company is Ravi Modi Family Trust, Shilpi Modi and Ravi Modi.

The lead managers are :

• Axis Capital Limited
• IIFL Securities Limited
• Edelweiss Financial Services Limited
• Kotak Mahindra Capital Company Limited
• ICICI Securities Limited

The minimum lot size for the company is decided at 17 shares. This holding accounts to  14722 Rs.. The maximum lot size is decided at 221 shares. This amounts to 191386 Rs.. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	17 shares	14722 Rs
Maximum	221 shares	191386 Rs

OBJECTIVES FOR THE IPO

• The funds can be utilised for General corporate purposes.
• The company wants to get the listing benefits as well.

COMPANY FINANCIALS

Particulars (in Million Rs.)	Sept. 2021	2020-21	2019-20
ASSETS	14455	16257	15915
REVENUE	3873	6250	9480
NET PROFIT	984	1329	2366

Vedant Fashion has been focussing on increasing its outlet’s exposure and hence this can be noticed in the asset increase as well. The company has been constantly expanding itself with a steady profit growth. However one can easily notice that the sales and profit have gone down in the previous year. The reason is COVID crisis. The direct effect of COVID is noticed in this brand as it deals in exclusive ethnic wear. 

There were multiple restrictions on conducting marriages with limited people and even prohibited in some cases (during lockdown). This has been visible as a direct effect on Vedant Fashion’s Sales. Thus the dorcet effect of all such changes has been seen in the company’s balance sheet. However the good thing is that it has been able to achieve profits every year. Thus the company has a good working pattern which has benefitted in achieving green results even in times of crisis.

PROS

• It has four modes of business income.
• The company has its own website for sales hence dominating sales through online mode.
• Vedant Fashion has multiple outlets in foreign locations across USA, UAE and Canada.

CONS

• Highly competitive segment. Also the price fluctuations in raw cloth are affecting the textile industry.

Vedant Fashions IPO (Manyavar IPO) APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

1. Logging into Zerodha console through its website or KITE platform.
2. Clicking the IPO link present in the Portfolio section.
3. Click the Vedant Fashions IPO (Manyavar IPO) button and press the BID button.
4. Entering the details asked for like UPI ID, Quantity and price.
5. Submit the application form for the IPO.
6. Visiting the application of UPI for approving the transaction.

Now, applying for an IPO online is possible with most of the Discount and online brokers.