Parent company of popular Indian ethnic wear brand maker Manyavar, Vedant Fashions, share sale via initial public offering (IPO) will begin next week from February 4 and February 8. The company is planning to raise Rs 3,149 crore via IPO and has fixed price band of Rs 824-866 per share. A retail investor can invest in the IPO by placing a bid of minimum one lot of 17 shares up to maximum of 13 lots. At the upper end of the price band, one lot of Manyavar shares will cost Rs 14,722.
Manyavar's IPO is purely an offer for sale wherein its existing promoters - Ravi Modi, Shilpi Modi and Ravi Modi Family Trust are selling 36,364,838 equity shares of face vallue of Rs 1 each.
The Kolkata-based company said that the objective of the IPO is 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.
The OFS 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.
Since, the IPO is entirely an offer for sale, the company will not receive any proceeds from the public issue.
50 per cent of the issue is reserved for qualified institutional buyers which include large investors like banks, financial institutions, insurance companies and FIIs among others. 35 per cent of the issue id reserved for retail investors and the rest is for non-institutional investors.
Vedant Fashions' Manyavar brand is a category leader in the branded Indian wedding and celebration wear market with a pan India presence. The company's other brands include Twamev, Manthan, Mohey and Mebaz.
As of September 2021, the company has an extensive retail network with 546 exclusive brand outlets (EBOs) including 58 shop-in-shops globally, including 11 overseas EBOs across the United States, Canada and the UAE, which are countries with a large Indian diaspora.
In India, the company's EBO network spans across 212 cities and towns, as of September 2021.
"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 said in the red herring prospectus.
Axis Capital, Edelweiss Financial Services, ICICI Securities, IIFL Securities and Kotak Mahindra Capital are the book-running lead managers to the issue.