28 Jan , 2022 By : monika singh
NEW DELHI: Ethnic apparel retailer Vedant Fashions will launch its initial public offering (IPO) on February 4, Friday. The Kolkata-based company will sell its shares in the range of Rs 824-866. Vedant Fashions caters to the Indian celebration wear market with a diverse portfolio of brands including 'Manyavar', 'Mohey', 'Mebaz', 'Manthan' and 'Twamev'.
The issue is entirely an offer for sale (OFS) of 36,364,838 equity shares of face value Re 1 each by promoters and existing shareholders aggregating to Rs 3,150 crore at the upper price band.
The OFS comprises sale of up to 1.74 crore shares by Rhine Holdings Ltd, up to 7.23 lakh shares by Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF I, and up to 1.81 crore shares by Ravi Modi Family Trust.
The promoters of the company are Ravi Modi, Shilpi Modi and Ravi Modi Family Trust. Being entirely an OFS, the company will not receive any proceeds from the public issue.
Investors can bid for a minimum of 17 equity shares and in multiple of 17 thereof. The IPO can be subscribed till February 8, Tuesday.
Vedant Fashions is a leader in the branded Indian wedding and celebration wear market with a pan India presence, operating through franchise-owned exclusive brand outlets (EBOs).
As of September 2021, the company has an extensive retail network with 546 EBOs, including 58 shop-in-shops globally -- 11 overseas EBOs across the United States, Canada and the UAE, having a large Indian diaspora.
In India, the company's EBO network spans 212 cities and towns as of September 2021 and covers a retail footprint of 1.2 million square feet.
50 per cent of the net issue is reserved for qualified institutional buyers (QIBs), whereas non-institutional buyers will have 15 per cent shares allocated for them. Retail portion has been fixed at 35 per cent of the offer.
Axis Capital, Edelweiss Financial Services, ICICI Securities, IIFL Securities and Kotak Mahindra Capital are the book running lead managers to the issue, whereas KFin Technologies has been appointed as the registrar to the issue.
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