The issue was subscribed 1.01 times by 1.13 pm as it saw bids for 2,58,06,187 shares against an offering of 2,54,55,388 shares in the issue, the BSE data showed.
The quota for retail investors was subscribed 34 per cent while HNI quota fetched bids for only 11 per cent of their allocation. The portion reserved for QIBs was subscribed 2.86 times.
The company is aiming to raise Rs 3,149.19 crore via its initial stake sale, which is entirely an offer for sale (OFS) exercise from the promoters and existing shareholders.
The company is selling its shares in the range of Rs 824-866 apiece in the maiden public offering, which can be subscribed till Tuesday, February 8.
Incorporated in 2002, Vedant Fashions caters to the Indian celebration wear market with a diverse portfolio of brands. It offers a one-stop destination with a wide-spectrum of product offerings for every celebratory occasion.
Vedant Fashions’ portfolio of brands includes ‘Manyavar’, ‘Mohey’, ‘Mebaz’, ‘Manthan’ and ‘Twamev’.
Brokerages have a mixed review on the issue. Critics have flagged over the pricey valuations, leaving little room for the upside. Those who are backing the issue are positive on its market presence, segment leadership and strong supply chain.
Vedant Fashions is among the top companies in the Indian wedding and celebration wear segment. The company’s financials suffered a setback, which could be due to COVID-19, said Swastika Investmart in its pre-IPO note.
“The issue is valued at P/E 161(x) to its FY21 EPS of Rs. 5.36 and P/BV of 24.42(x) on NAV of 35.45 that seems to be overpriced also the issue is purely OFS based,” it added with an ‘avoid’ rating to the IPO.
Vedant Fashions garnered Rs 945 crore from anchor investors as it allotted 1,09,09,450 equity shares to anchor investors at Rs 866 apiece aggregating the transaction size to Rs 944.75 crore, according to a BSE circular.
The IPO’s anchor book has got good response from foreign and domestic funds, said Piyush Nagda, Head – Investment Products, Prabhudas Lilladher
“Its flagship brand Manyavar is category leader in mens branded wedding clothing segment and the company has created good scale through its franchise-owned Exclusive stores (EBOs) but valuation is high and we remain cautious,” he added.
