Vedant Fashions Ltd, owner of ethnic clothing brand Manyavar, will launch its initial public offering (IPO) next week on Friday, February 4. The company has set a price range of 824-866 per share and the public offering should yield 3,149 crores, at the upper end of the band. The tender for principal investors will open on February 3.

The initial share sale, which will close on February 8, is purely an offer for sale (OFS) of 36,364,838 shares by the promoter and existing shareholders. The promoters of the company are Ravi Modi, Shilpi Modi and Ravi Modi Family Trust.

According to market watchers, Vedant Fashions shares have started to command a premium (GMP) of 105 on the gray market today. The company’s shares are expected to be listed on the NSE and BSE stock exchanges on February 16, 2022.

Vedant Fashions Limited is one of the largest companies in India in the men’s wedding and celebratory wear segment. The company’s flagship brand, “Manyavar”, is a category leader in the branded wedding and celebratory wear market with a pan-Indian presence. The company’s other brands include Twamev, Manthan, Mohey and Mebaz.

As of September 2021, the company has an extensive retail network with 546 exclusive outlets (EBOs), including 58 shop-in-shops globally, including 11 overseas EBOs in the United States, Canada and the United Arab Emirates, which are countries with a large Indian diaspora.

“The success of their franchisee-based model is proven by the fact that as of September 30, 2021, approximately 73% of their franchisees have operated their stores for three years or more, and 65% of their customer sales by their franchisee Les EBOs owned by franchisees come from franchisees with two or more stores,” Axis Capital said in an IPO memo.

Axis Capital, Edelweiss Financial Services, ICICI Securities, IIFL Securities and Kotak Mahindra Capital are lead managers for the issuance. KFintech Private Limited is the Registrar of the Public Offering.

To subscribe to Mint Bulletins

* Enter a valid email address

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our app now!!