Vedant Fashions IPO opens today: Key things to know

The initial public offering (IPO) of Kolkata-based Vedant Fashions Limited, the owner of ethnic wear brands Manyavar, will open for subscription today.

Vedant Fashions has set a price band of Rs 824-866 per share for the public issue. At the upper end of the price band, the issue is expected to fetch Rs 3,149 crore.

This will be the third public issue of the year, following AGS Transact Technologies and Adani Wilmar. The public issue will open for subscription on February 4 and close on February 8. Anchor investors will be able to bid for the issue on February 3.

According to market observers, the shares of Vedant Fashions are commanding a premium price of Rs 105 in the grey market, a Mint report earlier said. The public issue will be entirely an offer-for-sale (OFS) of 36,364,838 equity shares by existing shareholders and promoters Ravi Modi, Shilpi Modi and Ravi Modi Family Trust. It will not consist of a fresh issue of equity shares. The Ravi Modi Family Trust is expected to trim its stake in the company by selling up to 18,182,432 equity shares.

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Other shareholders like Rhine Holdings and Kedaara AIF are likely to offload 17,459,392 and 723,014 equity shares, respectively, Financial Express earlier reported. Vedant Fashions will not get any proceeds from the issue as it is an OFS. The Securities and Exchange Board of India (SEBI) had given its approval to Vedant Fashions to float the IPO on January 18. It filed the draft red herring prospectus on January 22.

Only 35 percent of the issue will be available for retail investors, while half of it is reserved for Qualified Institutional Buyers (QIB).

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The rest 15 percent will be available for non-institutional investors. Investors can bid in lots of 17 equity shares and in multiples.IIFL Securities, Axis Capital, ICICI Securities, Edelweiss Financial Services and Kotak Mahindra Capital are acting as the book-running lead managers for the Vedant Fashions issue, while KFintech Private Limited is its registrar.

Vedant Fashions Limited is a leading retail fashion brand that sells wedding and celebration wear. ‘Manyavar’, the company’s flagship brand, is a market leader in wedding and celebration wear for men segment. The company also owns and runs other brands like Twamev, Manthan, Mohey and Mebaz. As of September 2021, the company had 546 exclusive brand outlets in India, US, Canada and the UAE.