The stock of Manyavar’s parent company Vedant Fashions will be listed on February 16. Experts believe that the issue is overpriced and there is volatility in the market, so it may get listed at a discount compared to the issue price.
Manyawar IPO Listing Expectations: The stock of Vedanta Fashions Limited, the parent company of ethnic wear brand Manyavar, will be listed in the market on February 16. In the kind of uncertainties created in the market, questions are being raised in the minds of the investors who have got the allotment regarding the listing of the shares. There are also indications of the listing being flat from the gray market. On the other hand, experts believe that the issue is overpriced and there is volatility in the market, so it may get listed at a discount compared to the issue price. The upper price band of the share in the issue was Rs 860.
Investors will lose on listing!
Ayush Agarwal, Senior Analyst, Swastika Investmart, says that Vedant Fashions is one of the top companies in the wedding and celebration wear segment in India. The company’s popular brand is Manyavar Mohey. The company’s financials have been affected due to the closure of the store in COVID 19. But now business has become normal in the first 6 months of FY 2022. The issue is about its valuation which is looking overpriced. At the same time, this IPO is completely offer for sale based, that is, the company will not get the money coming from the issue. Due to this the issue has got a sluggish response from the investors. This issue is subscribed 2.57 times over today. The retail share is filled only 0.39 times. If you look at the gray market premium, then the stock is trading near the upper price band. Right now there is uncertainty in the market due to the global market sentiment. In such a situation, the stock may get listed weaker than its issue price.
How was the response from investors
In the IPO of Vedant Fashions, 35 per cent was reserved for retail investors. This part is only 39 percent filled till the last day. 50 percent was reserved for QIB ie Qualified Institutional Investors. This part is full 7.49 times. Whereas 15 per cent was reserved for non-institutional investors and it is filled 1.07 times. Overall this issue is subscribed 2.57 times.
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