Vedant Fashions started its Dalal Street journey on a positive note on Wednesday, February 16. Vedant Fashions share listed 8 per cent to issue price of Rs 866. Vedant Fashions stock opened at Rs 936 on the BSE. At NSE, Vedant Fashions got listed at Rs 935. After initial lukewarm responses, the Rs 3,149-crore issue garnered some momentum on the last day of subscription. Vedant Fashions IPO was subscribed 2.57 times on the final day. Considering volatility in the market and expensive valuation, this listing was expected.
The Kolkata-based ethnic wear brand aimed to raise Rs 3,149 crore from its public offer. Vedant Fashions IPO was entirely an offer-for-sale (OFS) of 36,364,838 equity shares by the promoter and existing shareholders. The price band for Vedant Fashions IPO was fixed at Rs 824-866 per share.
“The valuation of Vedant Fashions looks expensive and investors will not have much space. The primary market sentiments have nosedived amid sell off in broader market. So we expect the IPO to list at a discounted price of around 3-5 per cent,” said Dr Ravi Singh-vice president and head of Research, Share India.
Vedant Fashions IPO Subscription Status
Vedant Fashions IPO received bids for over 6.53 crore shares against the total issue size of over 2.54 crore shares, the data showed. The retail portion of Vedant Fashions IPO saw overwhelming response. It was booked 39 per cent. The portion set aside for the qualified institutional buyers was subscribed 7.49 times. Non-institutional investors also got 1.07 times subscription.
Vedant Fashions IPO GMP
The grey market premium of Vedant Fashions IPO stood at minus Rs 2. The negative grey market premium and volatile market indicated a ‘flat’ to ‘marginal discounted’ debut of Vedant Fashions IPO on Wednesday, February 16.
Vedant Fashions IPO Listing Prediction
“The issue of Vedant Fashions Limited got a sluggish response as the issue looked very richly priced.The correction in recently listed stocks and broder market sailing in deep red sea have turned investors cautious.The listing also should be in parallel line as hardly anything is left on table for investors. A flattish kind of listing is expected,” said Abhay Doshi, founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares.
Vedant Fashions is a Kolkata-based ethnic wear maker which owns the popular male ethic brand ‘Manyavar’. Its flagship brand Manyavar is the category leader in the men’s branded wedding clothing segment. Vedant Fashions’s other brands include Twamev, Manthan, Mohey and Mebaz. It operates its business through franchise-owned exclusive brand outlets (EBOs), multi-brand outlets (MBOs), large format stores (LFSs) and online platforms (including website and mobile application).
“Vedant Fashions suffered a setback during the pandemic but maintained its profit in line with top lines. The issue was subscribed 2.57 times. The GMP is negligible for the time being we can expect a muted debut on the listing. One can wait and watch for a few quarters if one wishes to buy. Those allotted can book profits wholly or partially depending on the risk appetite,” said Manoj Dalmia, founder and director, Proficient equities Private limited.
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