Manyavar Owner Vedant Fashions To Launch IPO On February 4: Report

The company has received markets regulator Sebi’s nod to raise funds through an initial share-sale

Vedant Fashions, the parent firm of Manyavar that had filed its preliminary IPO papers in September, obtained its observation letter on January 18. Image: Getty

New Delhi: Vedant Fashions, which owns ethnic wear brand Manyavar, will launch its initial public offering (IPO) on February 4 and close on February 8, according to a report published in Moneycontrol.

Markets regulator Sebi has given its nod to the company to raise funds via an initial share-sale.

According to PTI, the IPO is purely an offer-for-sale of 36,364,838 equity shares by promoter and existing shareholders, said the Draft Red Herring Prospectus. The offer-for-sale comprises sale of up to 1.74 crore shares by Rhine Holdings Ltd; up to 7.23 lakh shares by Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF I; and up to 1.81 crore shares by Ravi Modi Family Trust.

Vedant Fashions, which had filed its preliminary IPO papers with Sebi in September, obtained its observation letter on January 18, an update with the Sebi showed on Monday.

The promoters of the firm are Ravi Modi, Shilpi Modi, and Ravi Modi Family Trust. Since, the IPO is entirely an offer-for-sale, the company will not receive any proceeds from the public issue.

Manyavar is a category leader in the branded Indian wedding and celebrations wear market with a pan-Indian presence. The company's other brands include Twamev, Manthan, Mohey, and Mebaz.

The company has a retail network with 537 exclusive brand outlets (EBOs), including 55 shop-in-shops globally, as of June 30, 2021. It has 12 overseas EBOs across the United States, Canada, and the UAE, which are countries with a large Indian diaspora.

“We seek to grow our retail network and product reach by entering new geographies, including in tier-II and III towns and cities in India, as we believe that these markets offer significant growth opportunities for us,” the company had said in the draft papers.

With inputs from PTI