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Vedant Fashions Ltd, the owner of ethnic wear brand Manyavar made a strong debut on the bourses on Wednesday, listing at 8 per cent premium over its issue price of ₹866.
Despite volatility in the market and valuation concerns, it managed to close at nearly 9 per cent premium on listing day.
The shares of Vedant Fashions listed at ₹936 on the BSE, up ₹70 or 8.08 per cent over the IPO price.It gained further post listing to record a high of ₹993. It recorded an intraday low of ₹921. It closed at ₹934.85, up ₹68.85 or 7.95 per cent over the issue price.
The shares listed at ₹935 on the NSE went up 69.00 or 7.97 per cent over the issue price and closed at ₹943.05, up by 8.90 per cent.
The initial public offering of the company had struggled during the first two days. The IPO was over-subscribed about 2.6 times.
IPO price
The company had fixed the IPO price as ₹866, at the upper end of the price band of ₹824-866.
The company did not receive funds as the issue was entirely an offer-for-sale of 3.63 crore shares by promoters and shareholders, who included Rhine Holdings Limited (1.745 crore shares), Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF 1 (7.23 lakh shares) and Ravi Modi Family (1.818 crore shares).
Santosh Meena, Head of Research, Swastika Investmart Ltd said, “Vedant Fashion is debuting the secondary market on a positive note despite poor subscription figures. The company has strong brand value with good fundamentals however valuation is a major concern.”
According to Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, other “concerning points” impacting the stock include “expensive valuations leaving nothing on the table for new investors and factors like Russia-Ukraine conflict, global inflationary concern and rising crude prices would impact primary as well as secondary markets in near term.”
Ahead of the issue, it had raised ₹944.75 crore from anchor investors, who included marquee Investors such as Govt. of Singapore, Nomura Funds Ireland, Fidelity Securities Fund, Abu Dhabi Investment Authority, SBI Mutual Fund, Kotak Mutual Fund, Axis Mutual Fund, UTI AMC, ICICI Prudential Life Insurance, Aditya BIrla Sun Life Mutual, HDFC Life Insurance, Pinebride Global Funds and Volrado Venture Partners.
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