The ongoing correction in capital market has not dented valuation of Kolkata-based ethnic wear major Vedant Fashions' initial public offer that aims to raise Rs 3,149 crore, a company official said on Friday.
The company, whose flagship brand is the male ethic 'Manyavar' label, has fixed its issue price band at Rs 824-866 a share, a company official said.
BSE Sensex has seen about 4300 point correction since early January amid highly volatile trading sessions. The company official said the pricing was decided after feedback from institutional investors who have shown high demand interest for the shares.
The brokerage houses had initially estimatied that the IPO would be about Rs 2500 crore. However, with better valuations the company is set to raise upto Rs 3,149 crore at the upper price band through it, the official said.
Vedant Fashions shares have started commanding a premium of Rs 105 over its issue price in the grey market on Friday. Its shares are expected to list on NSE and BSE on February 16.
The public issue, which will open on February 4, will be purely offer for sale (OFS) of 36,364,838 equity shares by promoters and existing shareholders, the official said.
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 and up to 1.81 crore shares by Ravi Modi Family Trust.
Rationalizing the high price band, he said it is an asset light company with zero debt despite its 546 exclusive stores. The huge growth potential in the organised celebration market will help to retain its high growth momentum.
Vedant Fashions is a pan-India player with a retail presence in over 200 cities and three countries in UAE, Canada and the United States.
The company said it will double its overseas store floor area in the next few years.
Its 'Manyavar' brand accounts for about 80 per cent of its revenue and the company officials said it was confident that its other newer brands will grow stronger in the years to come.
Asked about the impact of the third wave of COVID-19 on it, the company said it was minimal as shutdown was minimal.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU