January 28, 2023

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Vedant Fashions IPO Subscription Status: Vedant Fashions IPO sails through on strong QIB demand

The Rs 3,149.14 crore-first public providing (IPO) of Vedant Fashions (VFL) sailed through on the remaining working day of the bidding process on Tuesday on potent demand from customers from QIBs.

The challenge was subscribed 1.01 instances by 1.13 pm as it saw bids for 2,58,06,187 shares versus an presenting of 2,54,55,388 shares in the difficulty, the BSE details showed.

The quota for retail investors was subscribed 34 per cent even though HNI quota fetched bids for only 11 for every cent of their allocation. The part reserved for QIBs was subscribed 2.86 times.

The organization is aiming to raise Rs 3,149.19 crore via its first stake sale, which is completely an offer for sale (OFS) workout from the promoters and present shareholders.

The business is advertising its shares in the vary of Rs 824-866 apiece in the maiden general public presenting, which can be subscribed till Tuesday, February 8.

Included in 2002, Vedant Fashions caters to the Indian celebration have on market with a various portfolio of manufacturers. It provides a a single-halt place with a extensive-spectrum of product or service choices for each and every celebratory occasion.

Vedant Fashions’ portfolio of manufacturers includes ‘Manyavar’, ‘Mohey’, ‘Mebaz’, ‘Manthan’ and ‘Twamev’.

Brokerages have a combined critique on the problem. Critics have flagged in excess of the expensive valuations, leaving minor place for the upside. Individuals who are backing the problem are beneficial on its current market existence, section leadership and strong offer chain.

Vedant Fashions is amongst the best businesses in the Indian marriage ceremony and celebration put on phase. The company’s financials endured a setback, which could be thanks to COVID-19, claimed Swastika Investmart in its pre-IPO note.

“The challenge is valued at P/E 161(x) to its FY21 EPS of Rs. 5.36 and P/BV of 24.42(x) on NAV of 35.45 that appears to be to be overpriced also the issue is purely OFS based,” it included with an ‘avoid’ score to the IPO.

Vedant Fashions garnered Rs 945 crore from anchor traders as it allotted 1,09,09,450 equity shares to anchor buyers at Rs 866 apiece aggregating the transaction measurement to Rs 944.75 crore, in accordance to a BSE round.

The IPO’s anchor e book has bought great response from overseas and domestic funds, stated Piyush Nagda, Head – Investment Solutions, Prabhudas Lilladher

“Its flagship manufacturer Manyavar is classification leader in mens branded wedding day apparel segment and the company has created good scale via its franchise-owned Exclusive outlets (EBOs) but valuation is substantial and we remain cautious,” he extra.