Vedant Fashions IPO: Stock Makes Strong Debut, Shares List At 8% Premium Over Issue Price
The Rs 3,150-crore IPO of Kolkata-based Vedant Fashions had received tepid response, with issue subscribed nearly three times
New Delhi: Vedant Fashions, owner of Indian ethnic wear brand Manyavar, made a positive debut on Wednesday as its stock listed with an 8 per cent premium to issue price of Rs 866. On the National Stock Exchange (NSE), the stock opened at Rs 935 per share.
Vedant Fashions was the third debut on the bourses in 2022 after AGS Transact Technologies and Adani Wilmar.
The listing was on expected lines given the tepid response from investors, expensive valuations, the complete offer for sale issue and the market volatility.
The Rs 3,150-crore IPO of Kolkata-based Vedant Fashions had received tepid response, with issue subscribed nearly three times. The institutional investor portion of the IPO saw 7.5 times oversubscription, the wealthy investor portion was subscribed 1.07 times, while the retail portion remained undersubscribed at 40 per cent.
Most of analysts had recommended the issue for long-term gains and not for listing gains.
Under the IPO, which was entirely an offer for sale (OFS) by promoters and existing shareholders, Vedant Fashions shares were available for bidding in a price band of Rs 824-866 in multiples of 17. Ahead of the IPO, Vedant Fashions said it had garnered Rs 945 crore from anchor investors.
The company logged a 44 per cent year-on-year (YoY) decline in profit for the year FY21 at Rs 132.90 crore and 38.3 per cent fall in revenue at Rs 564.82 crore, compared to previous year, impacted by lockdowns. Later it bounced back with strong numbers in the six-month period ended September 2021. The firm clocked profit of Rs 98.40 crore against a loss of Rs 17.65 crore in the corresponding period a year earlier. Revenue during the same period shot up to Rs 359.84 crore against Rs 71.70 crore.
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