Have you ever worn a Manyavar kurta? In fact, ‘Vedanta Fashions’, a company that makes ethnic wear under the Manyavar brand name, is bringing an IPO next week. This will be the third IPO to come this year. Earlier, AGS Transact and Adani Wilmar had floated IPOs. Moneycontrol brings to you 10 most important things about Vedanta Fashions IPO. This will help you in taking investment decision in this IPO.
1. On what date will the IPO come?
This IPO will open on 4th February. One can invest in it till February 8. The issue will open for anchor investors only on February 3.
2. What is the price band of the IPO?
The company has fixed a price band of Rs 824-866 per share for the IPO.
3. What is the issue size?
Vedanta Fashions is looking to raise Rs 3,149.2 crore from IPO. The company will issue 3,63,64,838 shares under the issue. This will be purely an offer for sale. This means that in this IPO the existing promoters of the company will sell their shares. Thus, the entire amount raised from the issue will go into the pockets of its promoters.
4. What is the lot size?
Retail investors will have to bid for at least 17 shares. Investors who want to bid for more shares will have to bid in a multiple of 17 (eg 34, 51…). A minimum investment of Rs 14,722 has to be made for one lot. A maximum of 13 lots can be bid.
5. What is the objective of the issue?
Vedanta Fashions will not get money from this issue. The entire amount will go to its promoters. The company believes that the listing of shares on the stock exchanges will strengthen the Manyavar brand.
6. What is the company profile?
The company manufactures dresses for men to wear on wedding and celebration occasions. It is the country’s largest company in this segment in terms of revenue, OPBDIT and profit after tax.
7. How is the financial position of Vedanta Fashions?
The company has made a profit of Rs 98.41 crore in the first half of the current financial year. The company had a loss of Rs 17.64 crore in the same period of the previous financial year. The company’s revenue (from operations) increased to Rs 359.84 crore in the first half of this financial year. It was Rs 71.7 crore in the corresponding period of last fiscal.
8. Who are the promoters of the company?
The promoters of this company include Ravi Modi, Shilpi Modi and Ravi Modi Family Trust. He holds 76.38 percent stake in the company. At the time of RHP filing, the promoter and promoter group’s stake in the company was 92.40 per cent. The remaining 7.6 per cent is held by a few investors, including Rhine Holding. Ravi Modi is the Chairman and MD of the company. His wife Shilpi Modi is a whole-time director.
9. What is the share price in gray market?
The share price of the company is running between 916-946 in the gray market. This is a premium of 6-9 per cent over the fixed price band for the issue.
10. When will the shares be listed on the stock exchange?
The company will finalize the allotment of shares on February 11. On February 14, the company will refund the money to those investors who will not be allotted shares. The shares are expected to arrive in the demat account of the investors by February 15. The shares will be listed on BSE and NSE on February 16.
Read also: Adani Wilmar IPO: Know what signals are coming from the gray market after 2 days of subscription, what is the opinion of experts?
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