Vedant Fashion: Vedant Fashion, the owner of men’s celebration wear brand Manyavar, on February 16, quelled the disappointment on Dalal Street with a listing on the National Stock Exchange (NSE) at Rs 931 with a premium of 8 per cent over the issue price. done. At around 12 noon, the stock is trading at Rs 954 with a strength of 10 percent.
Due to expensive valuations, there is less scope for investors
Ahead of its market launch, several analysts had said that Vedant Fashion could get listed at a discount due to high valuations and comparatively sluggish investor response to the IPO.
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Ravi Singh, Vice President and Head (Research), ShareIndia, had said, “Vedanta Fashions valuations look expensive and there will not be much space for investors. The sentiment in the primary market is weak amid selling in the broader market.
Opportunities can be found on 15-20% fall
Santosh Meena, Head (Research), Swastika Investmart said, “The company has strong brand value with sound fundamentals, though valuations are a major concern. Hence, investors should go ahead with a long-term perspective. A fall of 15-20 per cent from the current levels could be a good buying opportunity.”
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Can hold from long term perspective
Analysts believe that listing the stock at a premium can provide a good exit opportunity for IPO investors. The chances of further growth are slim due to costly valuations.
Mehta Equities Vice President (Research) said, “If investors are looking to buy shares on the listing day, it is better to wait for a good discounted price. However, risk takers can hold it from a long term perspective.”
Issue was subscribed 2.57 times
Vedanta Fashions is the country’s largest manufacturer of Indian vending and ethnic wear for men. Its issue opened on 4 February and closed on 8 February. The company’s issue was subscribed 2.57 times. However, retail investors did not show much interest in the IPO of Vedanta Fashions and got only 31 per cent of the bids reserved for them. On the other hand, the share reserved for Qualified Institutional Buyers (QIBs) was subscribed the most at 7.49 times, while the share of non-institutional investors (NIIs) got subscribed 1.07 times.
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