Vedant Fashions Ltd. IPO

Vedant Fashions Ltd.

IPO Listing Details

Listed On

BSE & NSE

Listed On

Issue Price

₹866

Issue Price

Listing Price

₹936

Listing Price

Listing Gains

+₹70.00 (+8.08%)

Listing Gains

IPO Details

Bidding Dates

04 Feb - 08 Feb '22

Bidding Dates

Min. Investment

₹14,008

Min. Investment

Lot Size

17.00

Lot Size

Price Range

₹824 - ₹866

Price Range

Issue Size

2,996 Cr

Issue Size

IPO Doc

(D)RHP PDF  

(D)RHP PDF

Subscription Rate - Vedant Fashions Ltd. IPO

  • Retail Individual Investor
    0.39x
  • Non-Institutional Investor
    1.07x
  • Qualified Institutional Buyers
    7.49x
  • Employees
    NA


About Vedant Fashions Ltd. IPO

Vedant Fashion is in the business of men's festive and celebration wear and is the largest in the segment in revenues and PAT (profit after tax). The company has many brands, including category-leader Manyavar and other names like Twamev, Manthan, Mebaz, and Mohey. The company is focused on Indian heritage wear across various price points and is looking to strengthen its premium and value segment positions. The fashion house boasts a retail footprint of 1.2 million sq. ft. that include 546 exclusive brand outlets (EBOs) and 55 shop-in-shops spanning 207 cities in India. It also has 12 EBOs in the USA, Canada and the UAE. Customers can buy its products on the company's website or mobile app.

Why should you invest in Vedant Fashions Ltd. IPO?

Here are some of the positive aspects of this business:

  • Despite having faced headwinds through the COVID-19 pandemic and the concomitant restrictions on public gatherings such as weddings and celebrations, VFL has managed to maintain strong margins. In the 6 months from Apr '21 to Sept '21, its sales percentages from various cities are as follows:
  • Tier I: 44.6%
  • Tier II: 38.64%
  • Tier III: 13%
  • Global Markets: 3.59%
  • An already established market leader, Vedant Fashion Ltd is growing its product range to make its business inclusive of women's wear and kid's wear. In 2020-25, they expect to increase by 18%-20%.

Performance Snapshot of Vedanta Fashion Ltd: (in crores)

  • Financial Year
    Total Assets
    Total Revenue
    PAT
  • March 2021
    1625.65
    625.02
    132.90
  • March 2020
    1591.55
    947.98
    236.64
  • March 2019
    1145.77
    819.80
    182.16

Important dates - Vedant Fashions IPO

  • Application opens on
    4 February 2022
  • Last date of application
    8 February 2022
  • Date of allotment
    11 February 2022
  • Refund begins from
    14 February 2022
  • Stocks get credited in DEMAT A/C on
    15 February 2022
  • Listing Date
    16 February 2022


SWOT Analysis - Vedant Fashions Ltd. IPO

Strengths:
With a vast network of EBOs, Multi-Brand Outlets (MBOs) and online presence, the company is well-positioned with a pan-India footprint. A growing operating profit over the years also indicates stable growth.

The company also has various products, including celebration wear, party wear, wedding wear and special occasion outfits. Its brand 'Mohey' also offers women's ethnic wear and kidswear. 

Apart from that, Vedant Fashions also has an active social media presence with a history of celebrity-figure endorsements and its tie-up with the IPL. Manyavar, its flagship brand, is a leading name in its segment, with good recall.

 

Weakness:
The company's Gross Current Assets have significantly risen after revamping its store format in 2017-18 to a franchise-owned and franchise-operated (FOFO) operation model.

 

Opportunities:
Thanks to rapid urbanisation and the young demographic, the demand for apparel is constantly growing. A keen fashion sense among the youth and rising disposable incomes are expected to drive sales.

For the ethnic wear brand, plenty of festivals and pent-up demand are key driving factors for revenue growth. 

 

Threats:
Vulnerable to Raw Material Supply:

Supply chain shocks tend to affect the textile industry as raw material supply becomes inefficient. 

Fashion choices are continuously changing, and keeping up with the general preference whilst ensuring a consistent brand image is a challenge for ethnic wear brands. 


Competitive Analysis - Vedant Fashions Ltd. IPO

  • Vedant Fashion Ltd has become a one-stop-shop for Indian ethnic wear with a multi-channel distribution network.
  • Its flagship and vastly popular brand, 'Manyavar', has earned numerous awards. Among them is the Best Men's Ethnic Wear Brand (East)' of 2019 by Times Business Awards.
  • Vedant Fashion Ltd does not have any direct peers in India. Nonetheless, its competitors are Aditya Birla Fashion & Retail, Trent Ltd (Tata-owned), which cater to the Indian wedding and celebration wear segments. Brands like Soch and Biba also belong to this segment. 



How to apply for Vedant Fashions Ltd. IPO?

You can apply for the Vedant Fashions Ltd. IPO in these ways:

UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.

Demat Account

1. If you are an Existing TradeSmart demat account holder and wish to apply for an Vedant Fashions Ltd. click here.
2. If you don't have a TradeSmart Account? Sign up.

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Frequently Asked Questions (FAQs) - Vedant Fashions Ltd. IPO

What are the dates of the Vedant Fashion Ltd IPO?

The IPO will be open from 04th Feb 2022 to 08th Feb 2022.

When is the allotment date for Vedanta Fashion Limited shares?

The basis for allotment will be finalised on 11th Feb 2022, refunds will be initiated on 14th Feb 2022, and shares will be credited to respective Demat accounts on 15th Feb 2022.

What is the price range for Vedanta Fashion Limited's IPO?

The price range for this initial public offering shall be ₹824-866 per share. Each share has a face value of ₹1.

What is the lot size of the Vedanta Fashion Limited IPO?

Each lot consists of 17 shares. This means retail investors must apply for at least 17 shares, i.e. 1 lot.

What is the minimum amount needed to apply for Vedanta Fashion Limited shares?

Subscribers must apply for at least 1 lot, i.e. 17 shares. The minimum investment has to be ₹14,722 for the lot.

When will Vedanta Fashion Limited's shares be listed on the stock market?

The listing date for Vedanta Fashion Limited is 16th Feb 2022.

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