Vedant Fashions Limited (Manyavar) IPO – Globe Capital
Vedant Fashions Limited (Manyavar) IPO
Closed
Price Band
Rs. 824– 866
IPO Issue Period
FEB 04, 2022 to FEB 08, 2022
Issue Size
Rs. 3149.19 Cr.
Face value
Rs. 1/-
Fresh issue
NIL
Offer for sale
Rs. 3,149.19Cr.
Minimum Shares for Retail
17shares
Listing on
NSE, BSE
Issue Type
Book Building
Registrar to the Issue
KFintech Private Limited
Tentative Listing Date
Feb 16, 2022
QIB
Not More than 50% of the offer
NII
Not less than 15% of the offer
Retail
Not less than 35% of the offer

Axis Capital Limited
Edelweiss Financial Services Ltd
ICICI Securities Limited
IIFL Securities Ltd
Kotak Mahindra Capital Company Limited

Vedant Fashions Ltd. (VFL) caters to the Indian celebration wear market with diverse portfolio of brands including Manyavar, Mohey, Mebaz, Mathan and Twamev. VFL is the largest company in India in the men’s Indian wedding and celebration wear segment in terms of revenue in FY20. It offers a one-stop destinations and wide spectrum of product offering for every celebration occasion. The company’s Manyavar brand is a category leader in the branded Indian wedding and celebration bear market with a pan India presence. As per the company, VFL focus on spreading India’s vibrant culture, traditions & heritage through aspirational yet value for money brands at a diverse range of price points.

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 September 30, 2021, the company had a retail footprint of 1.2 Mn sq. ft covering 535 EBOs (including 55 shop-in-shops) spanning 212 cities and towns in India, and 11 EBOs overseas across the United States, Canada, and the UAE. Ravi Modi, Shilpi Modi and Ravi Modi Family Trust are the company promoters.

For year/ period ended ( in Cr.)

H1FY22 FY21 FY20
Total Revenue 564.8 915.5 800.7
Profit After Tax 132.9 236.6 176.4
EPS 5.4 9.4 7.0
OPM (%) 43% 43% 41.9%
PATM (%) 23.5% 25.8% 22%
  • Market leader in Indian celebration wear market with a diverse portfolio of brands catering to the aspiration of the entire family
  • Large and growing Indian wedding and celebration wear market driven by an increased spending on such wear
  • Omni-channel network with the seamless integration of offline and online Channel
  • Technology-based strong supply chain and inventory systems
  • The experienced and professional leadership team
  • 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.

At the upper band of Rs. 866, the stock is valued at ~52x EV/EBITDA and ~160x P/E on FY21 figures. The company’s category advantage, industry-leading margins and return-ratios are positives. This profit-making company may surprise all post listing. Risk seekers may consider an investment with a long term perspective.

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