About The IPO
Vedant Fashions caters to Indian festive wear, primarily menswear. Manyavar is its most famous brand. It’s so popular that people associate it with Virat Kohli and Anushka Sharma now, ever since they starred in the ad campaigns.
This will be the 3rd IPO of this year. The company is going to raise Rs 3,149 crore from the public at a price band of Rs 824-866 per share. The IPO opens on February 4 and closes on February 8. The issue is entirely an offer for sale. Promoters won’t be selling their stake. The listing of the company will be on February 16.
Talking about the grey market, the company is commanding a premium of Rs 105. The GMP would indicate how the company will perform at the bourses on the listing day. So far, the response has been positive.
Vedant Fashions has a vast retail network of 1.2 million sq ft in India. It also has a presence in 11 countries where the Indian diaspora is abundant. As of September 2021, the company has over 500 exclusive brand outlets (EBOs) globally.
Should You Be Concerned?
Concerns related to a company will only be visible in their earnings, and so far Vedant Fashions sees no such hiccups. Till September 30, 2021, the company has reported revenue of Rs 360 crore and profit of Rs 98 crore.
With the company’s expansive retail network and brand recognition, it’s expected to witness a healthy response from the investing community. Moreover, it’s a market leader in the premium menswear space, and it has no listed peers. The company has a wide spectrum of product offerings, with an asset-light business model and outsourcing of manufacturing operations with the majority of sales coming via franchisee-owned EBOs.
What Lies Ahead?
Promoters aren’t selling their stake in the IPO, which indicates their strong belief in the brand. Post-pandemic, the country saw a strong festive season. This means that Vedant Fashions will continue to grab attention as long as the festive demand is strong. The future of the company seems to be unhindered since it’s expected that the branded market will grow 18-20% between FY20-25 due to an increase in demand for festive wear.
