Vedant Fashions IPO: The shares of Vedant Fashion will be listed on the stock exchanges tomorrow i.e. on Wednesday 16 February. However, market experts expect its listing to be weak. He says that the weak response from investors to its initial public offering (IPO) and the current weak market sentiment will have an impact on its listing. Vedanta Fashions is the country’s largest manufacturer of Indian vending and ethnic wear for men.
The IPO of Vedanta Fashions was purely offer-for-sale (OFS). This means that the company will not get the money from this IPO, rather all this money will go to the promoters and shareholders. Apart from this, many experts are telling more about the valuation of the company, whose effect can be seen on the listing price tomorrow.
Experts are broadly of the view that the shares of Vedanta Fashions will have a flat listing at its issue price or it may even get listed at a discount of few per cent. The issue price for Vedanta Fashions has been fixed at Rs 866 per share.
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The IPO of Vedanta Fashions was open for bidding from February 4 to 8. However, it garnered a very weak response from investors and was oversubscribed 2.57 times till the last day. 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.
Ayush Agarwal, Senior Analyst, Swastika Investmart said, “The company’s financial figures were badly affected during the corona epidemic, but it returned to normal levels again in the first half of FY 2022. Based on the earnings of FY 2021, this is The issue is valued at 161 times its P/E and 24.42 times the price to book value, which looks a bit pricey.”
Shares of Vedanta Fashions were trading near their issue price even in the gray market. “The impact of the ongoing volatility on the global level is expected to continue on the Indian stock market as well. Hence, the stock is expected to list below its issue price,” Agarwal said. Aastha Jain, Senior Research Analyst, Hem Securities, also expects the issue to be listed at a flat or a discount of a few per cent.
Vedanta Fashions has hugely popular clothing brands like ‘Manyavar’ and ‘Mohey’ which have a pan India presence. Other important brands of the company are Manthan, Tvmev and Mebaaz.
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