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Vedant Fashions Ltd (VFL), which owns the ethnic wear brand Manyavar, will launch its initial public offering (IPO) on February 4. The company has fixed a price band of ₹824-866 per share of face value of ₹1 each and the issue is likely to fetch around ₹3,149 crore at the upper end of the band.
The bidding for anchor investors will open on February 3 (Thursday). Bids can be made for a minimum of 17 equity shares and in multiples of 17 shares thereafter.
The issue is completely an offer for sale (OFS) of 36,364,838 equity shares, comprising of up to 17,459,392 equity shares by Rhine Holdings Ltd, up to 7,23,014 equity shares by Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF 1 and up to 18,182,432 equity shares by Ravi Modi Family Trust (acting through its trustee, Modi Fiduciary Services Private Ltd).
Being entirely an OFS the company will not receive any proceeds from the issue.
Company background
VFL operates a multi-channel retail distribution network across India and sells products through franchise-owned exclusive brand outlets (EBOs), multi-brand outlets (MBOs), large format stores (LFSs) and online platforms, including own website.
As of September 30, 2021, the company had a retail footprint of 1.2 million sq ft covering 535 EBOs (including 58 shop-in-shops) spanning across 212 cities and towns in India, and 11 EBOs overseas across eight cities internationally in the US, Canada and the UAE.
Nearly 50 per cent of the offer would be available for allocation on a proportionate basis to qualified institutional buyers (QIB), provided that the company and the selling shareholders in consultation with the BRLMs may allocate up to 60 per cent of the QIB portion to anchor investors on a discretionary basis.
Further, not less than 15 per cent of the offer would be available for allocation on a proportionate basis to non-institutional investors and not less than 35 per cent of the offer would be available for allocation to retail individual investors, subject to valid bids being received from them at or above the offer price.
The equity shares offered are proposed to be listed at both BSE and NSE post the listing.
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