Vedant Fashions: The issue of Vedant Fashions will open on February 4 and close on February 8. The company’s issue price band has been fixed at Rs 824-866. The issue of the company is purely Offer for Sale (OFS). The promoters and existing shareholders of the company are selling 36,364,838 equity shares in OFS. The company is preparing to raise Rs 3,149 crore from the issue.
What should investors do?
According to brokerage firm Angel One, “Vedanta Fashions has high operating margins, asset light business, strong brand and wide range of products, but we believe these positives have been factored into the valuations of the company. Hence, we have given neutral rating to this issue.”
In the opinion of the analysts at Choice Broking, its price is too high and no margin is left for the safety of the investors. “Therefore, there is a need to be cautious on the valuation front. Considering all aspects, we recommend ‘Subscribing with caution’ to the issue.”
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945 crores raised from anchor investors
Vedanta Fashions has raised Rs 945 crore from anchor investors on February 3, a day before the IPO opens. As per information given to BSE, Vedant Fashions has issued 1,09,09,450 equity shares to anchor investors. These shares have been given to anchor investors at Rs 866 per share. Accordingly, Vedant Fashions has raised Rs 944.75 crore from anchor investors.
Anchor investors of Vedant Fashions include Government of Singapore, Monetary Authority of Singapore, Fidelity, Nomura, Abu Dhabi Investment Authority, Morgan Stanley Asia (Singapore), BNP Paribas Arbitrage and Societe Generale.
Apart from this, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, SBI Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mutual Fund, Aditya Birla Sunlife Mutual Fund, Sundaram Mutual Fund and UTI Mutual Fund have also taken shares of the company.
What’s going on GMP
According to market experts, shares of Vedant Fashions are trading at a premium of Rs 43 in the gray market a day before the issue opens. Accordingly, the shares of the company are trading at Rs 909 in the gray market.
The listing of shares of Vedant Fashions is scheduled on 16 February 2022 on BSE and NSE. Vedant Fashions is one of the largest companies in India in the Men’s Wedding & Celebration Wear segment. The company’s flagship brand Manyavar is a leader in the branded wedding and celebration wear market. Its presence is across the country. Other brands in this group include Twamev, Manthan, Mohey and Mebaz.
The company has a total of 546 exclusive brand outlets as of September 2021. Out of these, there are 58 shop-in-shops in other countries of the world. These include the company’s exclusive brand stores in 11 countries, including the United States, Canada and the UAE, which have a large presence of Indians.
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