- Market Leader in Ethnic Wear
Mumbai: The Rs 3,149 crore public issue (IPO) of Vedanta Fashion Ltd., the flagship company of the ethnic wear market, is opening in the capital market on February 4. It will be open for investment till February 8. In which 3.63 crore equity shares of the company with a face value of Re 1 are being offered at a price of Rs 824 to 866 per share.
This IPO is purely offer for sale. In this the company will not issue any new shares. The IPO is 15% of the company’s equity capital of Rs 24.24 crore.
546 Retail Showrooms in India & Abroad
Kolkata-based Vedanta Fashion was founded two decades ago by veteran garment industry entrepreneurs Ravi Modi and Shilpi Modi and now their son Vedanta Modi has also joined the company. ‘Manyavar’ is the first popular brand of the company. Under which the company makes traditional clothes for the groom. This brand is very popular in the country and abroad. Following its success, in 2015, the company launched a new brand of traditional bridal wear ‘Mohey’. It has also gained popularity for having exclusive apparel made by skilled craftsmen. The company now manufactures all bridal wears as well as designer ethnic wear for women, men and children for weddings and other special occasions. ‘Mebaz, Manthan, Twamev’ are also its premium value brands. Being the market leader, it is making steady profit while growing fast. It has 535 retail showrooms in India and 11 retail showrooms in USA, Canada, UAE.
Cash Reach Debt Free Company
Vedanta Fashion has a strong business model and is a one-of-a-kind monopoly brand in its segment. This can be easily gauged from the fact that during the financial year 2020-21, due to the corona epidemic, other garment companies had either made losses or the profit margins had decreased greatly. Even then Vedanta Fashion made a net profit of Rs.133 crores on a business of Rs.1021 crores with a high net profit margin of 24%. Net profit margin has reached 27% for the half year ended 30 September 2021. Vedanta Fashion has a strong network of 450 vendors and their growth with the company has strengthened their relationship. Thereby the supply is uninterrupted. The company is accelerating its growth by continuously expanding and expanding its product range. The financial position of the company is very strong. It is a completely debt free and cash reach company with a net worth of Rs 859 crores and cash of Rs 260 crores. Looking at the IPO price of Rs 866, the company is selling shares at a PE ratio of 85. From this point of view, it seems a bit expensive, but considering the aspects like high profit margin, cash rich, market leadership, high growth, small equity capital of Rs 24 crores and 85% stake of promoters after issue, this IPO looks profitable. .