Vedant Fashion Pvt Ltd is the largest company in the country in the men’s Indian wedding and celebration wear segment. The company offers a one-stop destination with a wide spectrum of product offerings for every celebratory occasion to its customer.
Vedant Fashions has a diverse portfolio of brands. The company’s brands include Vedant Fashions Limited is the parent enterprise to
(i) Manyavar,
(ii) Mohey,
(iii) Mebaz,
(iv) Manthan, and
(v) Twamev.
“Manyavar” brand is a category leader in the branded Indian wedding and celebration wear market with a pan-India presence. Vedant Fashions was the largest in India in the men’s Indian wedding and celebration wear segment in terms of revenue, OPBDIT, and profit after tax for the Financial Year 2020.
The company operates its business through franchise-owned exclusive brand outlets (EBOs), with the remaining by multi-brand outlets (MBOs), large format stores (LFSs), and online platforms, including its website (www.manyavar.com) and mobile application.
As of June 30, 2021, the company had a retail footprint of 1.1 Mn sq. ft covering 525 EBOs (including 55 shop-in-shops) spanning 207 cities and towns in India, and 12 EBOs overseas across the United States, Canada, and the UAE.
VEDANT FASHIONS IPO OBJECTIVE
To achieve the benefits of listing the equity shares on the stock exchanges; and
To carry out the Offer for Sale of up to 36,364,838 equity shares by the selling shareholders.
POSITIVES
Largest company in India in the men’s Indian wedding and celebration wear segment in terms of revenue
One of the fastest growing labels in the Women’s celebration wear
Large and growing Indian wedding and celebration wear market
Omni-channel network of seamlessly integrated business
Technology-based strong supply chain and inventory systems
The experienced and professional leadership team
NEGATIVE
.The COVID-19 pandemic or any future pandemic or widespread public health emergency could adversely affect the business, results of operations, financial condition and cash flows.
Business is highly concentrated on Indian wedding and celebration wear and vulnerable to changes in consumer preferences which could have an adverse effect on the business, results of operations and financial condition of the company.
The business of the company mostly depend on the strength of the key brands, and any failure to maintain or grow sales ofproducts could adversely affect the business.
VEDANT FASHIONS IPO DETAILS
Subscription Dates
4 – 8 February 2022
Price Band
824-866 per share
Fresh issue
NIL
Offer For Sale
3,149.19 Cr
Total IPO size
3,149.19 Cr
Minimum bid (lot size)
17 shares
Face Value
₹1 per share
Retail Allocation
35%
Listing On
NSE, BSE
Minimum Investment
14,722
Maximum Investment (Retail)
191,386
VEDANT FASHIONS IPOTIMELINE
IPO Open Date
4 February 2022
IPO Close Date
8 February 2022
Basis Of Allotment Date
11 February 2022
Initiation Of Refunds
14 February 2022
Credit Of Shares To Demat ACcount
15 February 2022
IPO Listing Date
16 February 2022
So, how does VEDANT FASHIONS IPO Fare in Terms of Financials?
Financial Details in Cr
FY2019
FY2020
FY2021
6MFY2022
Revenue
819.8
948.0
625.1
387.3
Expenses
548.9
636.4
443.1
254.8
Net income
176.5
236.5
133
98.4
Margin (%)
21.5
24.9
21.3
25.4
FINANCIAL REVIEW
Revenue decreases in FY21 in comparison to FY19 & FY20
Net Income decreases in FY21 in FY20 but improved in 6MFY22
Margin also deccreases in FY21 but improved in 6MFY22
Overall financial of Vedant Fashions IPO is not good. You can call just below average.
VEDANT FASHIONS IPO VALUATIONS
Face Value = Rs1 Per Equity Share
Earnings Per Share (EPS) = 5.36
PE Ratio = 153.73 – 161.57
Return on Net Worth (RONW) =12.19
Book Value(NAV) = 44.03
Upper Offer Price to Book Value =19.68
VALUATION REVIEW:
PE is 150 and Upper Price to Book Value is around 19.68
EPS is 5.36 which is below average)
RONW is 12.19 which is good
Overall it’s expensive & over valued IPO
COMPETITIVE ANALYSIS: MARKET PEERS
There are no listed companies in India that engage in a business similar to that of our Company. Accordingly, it is not possible to provide an industry comparison in relation to our Company.
VEDANT FASHIONS IPO GMP
Grey market premium as on 04-02-2022= Rs 50 /Share
Grey market premium as on 03-02-2022= Rs 50 /Share
Grey market premium as on 02-02-2022= Rs 50 /Share
Grey market premium as on 01-02-2022= Rs 50 /Share
Grey market premium as on 31-01-2022 = Rs 90/Share
Grey market premium as on 30-01-2022 = Rs 90/Share
Grey market premium as on 29-01-2022 = Rs 105/Share
Grey market premium as on 28-01-2022 = Rs 80/Share
Grey market premium as on 27-01-2022 = Rs 80/Share
Disclaimer:
IPO Grey Market Premium (VEDANT FASHIONS IPO GMP) mention is valid for the specific date as mentioned in the header.
We are not buying and selling IPO forms on IPO Grey Market.
Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamentals of the companies.
08/02/2022 5:00 PM
VEDANT FASHIONS IPO Live Subscription Status
Category
Shares Offered
Day 1
Day 2
Day 3
QIB
7,272,968
0.06
0.11
7.49
NII
5,454,726
0.06
0.09
1.07
Retail
12,727,694
0.22
0.31
0.39
Total
25,455,388
0.14
0.21
2.57
FINAL TAKEAWAY
To be Valuation is expensive & financial is not impressive.
So, Only Risky Investors Apply for this IPO
EXPERT OPINION
To be Updated
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