Vedant Fashions - the owner of celebration wear brands Manyavar and Mohey -- is expected to file the draft red herring prospectus (DRHP) for an initial public offering (IPO) with market regulator SEBI this week.
Why is Vedant Fashions an interesting company?
Vedanta Fashions is a company that owns popular brands such as Manyavar, Mohey, Mebaz, Twamev and Manthan.
According to sources, Vedant Fashions could look at raising about Rs 3,000 crore through the IPO. The IPO is expected to be a complete offer for sale (OFS), which means that none of the funds raised through the IPO will come to the company but would instead go to the selling shareholders.
Private equity firm Kedaara Capital and Ravi Modi, who is the founder of Vedant Fashions, are expected to be the large selling shareholders, diluting a stake of approximately 14 percent.
Axis Capital, ICICI Securities, Edelweiss Securities, IIFL and Kotak Securities are the investment bankers to the issue.
A quick snapshot of the financials:
In the last four years, the company has been growing its revenue. However, FY21 particularly was not a great year for Vedant Fashions. Both its revenue from operations and total income declined about 38 percent and 34 percent respectively during the year.
Its profit after tax (PAT) fell about 44 percent, due to the fallout from the pandemic-related lockdown. Net cash flow from operating activities grew about 4 percent.
Watch the accompanying video of CNBC-TV18’s Yash Jain for more details