The stock of Vedanta Fashions Limited has made a strong entry in the market. Today the company’s stock is listed in the stock market at a premium of 8 percent.
Manyawar IPO Listing Today: Ethnic wear brand Manyavar’s parent company Vedanta Fashions Limited (Vedant Fashions) has made a strong entry in the stock market. Today the company’s stock is listed in the stock market at a premium of 8 percent. Vedant Fashions had fixed the stock price for the issue at Rs 866, while the stock is listed on BSE at Rs 936. That is, the investors who had invested money in it, they have got a profit of Rs. However, the issue received a sluggish response from investors and was subscribed 2.57 times overall.
Retail part was not filled completely
In the IPO of Vedant Fashions, 35 per cent was reserved for retail investors. This part was filled only 39 per cent till the last day. 50 percent was reserved for QIB ie Qualified Institutional Investors. This part filled 7.49 times. Whereas 15 per cent was reserved for non-institutional investors and it was filled 1.07 times. Overall this issue got subscribed 2.57 times.
about the company
Vedant Fashions’ brand Manyavar is very popular. It is the leading brand in the branded Indian Wedding and Celebration Wear market. The company also has brands under the names Twamev, Manthan, Mohey and Mebaz. As of June 30, 2021, the company has a retail network with 537 Exclusive Brand Outlets (EBOs), which includes 55 shop-in-shops globally. The company also has better business in America, Canada and UAE. The company’s focus is to expand its retail network and product reach by foraying into new areas including Tier-II and Tier-III cities in India.
was advised to stay away
Swastika Investmart Ltd. Ayush Agarwal, Senior Analyst of the IPO gave an “AVOID” rating on the IPO. He says that the financial performance of the company has been mixed in the last few years. Revenue increased in FY20, but declined thereafter in FY21 and declined to Rs 625 crore from Rs 9,47.97 crore. During this the profit decreased from 236.6 crores to 132.9 crores. The corona virus epidemic has had an effect on the performance of the company. However, the business of the company has become normal in the first 6 months of FY22. Vedant Fashions is India’s leading company in Indian Wedding and Celebration Wear. But valuations are looking overpriced. At the same time, it is completely OFS based, that is, the company will not get money.
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