For its IPO, the largest company in India in men’s Indian wedding and celebration wear segment, Vedant Fashions, has fixed issue price at Rs 866 per share which is the upper end of its price band and the issue price was Rs 824-866 per share.
Rs 3,149.19 Crore Fetched from the Issue Price Of Rs 866/share
The company fetched Rs 3,149.19 crore from its initial public offering (IPO) of more than Rs 3.63 crore equity shares, at issue price of Rs 866 per share.
The public issue consisted of only one offer for sale by investors (Rhine Holdings, and Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF 1), and promoter Ravi Modi Family Trust.
The company will not receive any IPO money and all the issue proceeds will go to selling shareholders.
Through the public issue, a total of 14.98 percent equity stake was sold by promoters and investors.
At a final issue price of Rs 866 per share, the market capitalization of the company was at Rs 21,017.36 crore.
The Lukewarm Response Of The Public Issue
The public issue did not receive great response from investors especially retail and non-institutional investors whose reserved portion were subscribed 39 percent and 1.07 times respectively.
The issue was mainly supported by qualified institutional buyers on the last day of subscription, February 8, whose portion was booked 7.49 times, helping the total issue get subscribed 2.57 times. The offer was opened for subscription on February 4.
Vedanta Fashions, with flagship brand ‘Manyavar’ and other four brands (Twamev, Manthan, Mohey, & Mebaz), offers a one-stop destination with a wide-spectrum of product offerings for every celebratory occasion.
Mainly the sales is generated by following:
- Franchise-owned exclusive brand outlets (EBOs)
- Multi-brand outlets (MBOs)
- Large format stores (LFSs)
- Online Platforms(Website & Mobile Application)
As per IPO Watch and IPO Central, against issue price of Rs 866 per share from the earlier Rs 40-50, it was trading premium in the grey market fell further to zero-to-Rs 10.
Market volatility volatility amid fear of faster tightening by central banks globally to fight inflation and lukewarm response from investors to the public issue were key reasons for fall in grey market premium.
The company will finalise share allotment of its IPO on Friday, February 11. Investors can check their application status online either through BSE website or the website of IPO registrar.
By February 14, funds will be refunded to unsuccessful investors and by February 15, equity shares will be credited to demat accounts of eligible investors.
According to the details available in prospectus, the company shall make its debut on the bourses on February 16.
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