Vedant Fashion Limited IPO Details Issue Price, Date, News, Allotment Status, GMP, Link, Updates

IPO-Note	Vedant Fashions Limited (Manyavar)
Rs 824 – Rs 866 per Equity share	Recommendation: Avoid

Vedant Fashions Limited (Manyavar) IPO Company Profile:

In India, Vedant Fashion Limited is the leading company in ethnic wear with its ‘Manyavar’ brand is a category leader in the men’s Indian wedding and celebration wear market with a pan India presence. It establishing its dominance in the premium and value segments through it other brands, Twamev and Manthan, respectively, and in the women’s Indian wedding and celebration wear market through brand, Mohey, launched in 2015. In financial year 2018, it acquired Mebaz, a regional legacy brand catering to the entire family with a rich heritage and established presence in the states of Andhra Pradesh and Telangana. As of September 30, 2021, it had a retail footprint of 1.2 million square feet covering 535 EBOs (including 58 shop-in-shops) spanning across 212 cities and towns in India, and 11 EBOs overseas across the United States, Canada and the UAE.

Vedant Fashions Limited (Manyavar) IPO Details –

Issue Details
Objects of the issue	· To achieve the benefits of listing the equity shares on the stock exchanges; and ·  To carry out the Offer for Sale of up to 36,364,838 equity shares by the selling shareholders.
Issue Size	Total issue Size -Rs. 3149.19 Cr. Offer for Sale – Rs. 3149.19 Cr.
Face value	Rs.1.00 Per Equity Share
Issue Price	Rs. 824 – Rs. 866
Bid Lot	17 shares
Listing at	BSE, NSE
Issue Opens:	4th Feb, 2022 – 8th Feb, 2022
QIB	50% of Net Issue Offer
Retail	35% of Net Issue Offer
NIB	15% of Net Issue Offer

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Vedant Fashions Limited (Manyavar) Strengths:

• Market leader in the Indian celebration wear market with a diverse portfolio of brands
• Omni-channel network with the seamless integration of offline and online channel
• High Differentiated business model combining the strengths of retailing with branded consumer play

 

Vedant Fashions Limited (Manyavar) Financial Performance:

Vedant Fashions Limited (Manyavar) Shareholding Pattern:

Shareholding Pattern	Pre- Issue	Post Issue
Promoters & Promoter Group	92.40%	84.91%
Public	7.60%	15.09%

Vedant Fashions Limited (Manyavar) Key Highlights:

• Revenue from operations declined 38.3% in FY21 due to ongoing Covid Pandemic however showed good recovery in H1FY22 with revenue up 4x compared to H1FY21.
• EBITDA Margin was 48.90% in H1FY22 vs 40.93% in H1FY21
• Manyavar brand contributed 82.5% of the Sales of Customers for the six months ended September 30, 2021.
• In FY21, over 90% of the Sales of its Customers was generated by its Exclusive Brand Outlets.
• Debt to equity ratio of the company is negligible.
• CFO/EBITDA stands at 1.02 in FY21. ROCE for FY21 stood at 22.9% with interest coverage ratio of 9.4.

Vedant Fashions Limited (Manyavar) Risk Factors:

• Business is highly concentrated on Indian wedding and celebration wear and vulnerable to variations in demand
• In FY19 and FY20, it launched two new brands Manthan and Twamev and the brands may not be successful as the company anticipates.
• Significant portion of the revenue of the company’s are by its franchisee owned Exclusive Brand Outlets.

Vedant Fashions Limited (Manyavar) Outlook:

Vedant Fashion leads the peers in terms of financials in the Indian wedding and celebration wear category. With majority of sales being generated through franchisee-owned EBOs, it does not need to invest in developing manufacturing facilities or a distribution system. CRISIL estimates the Indian wedding and celebration wear apparel market to grow at a 15% to 17% over FY22-25, with an estimated 9.5 million to 10 million weddings per year. At the higher price band of Rs 866, the offer is made at P/B multiple of 24.42x and P/E multiple of 100x on TTM EPS basis. The company buyback its shares in July 2021 at Rs 495. Keeping in mind the buyback price we recommend avoid to the IPO considering the high valuation of the company. However Aggressive investors can subscribe to the IPO as company has Good Financials and leadership in their segment.

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