Vedant Fashions share listing: Experts predict 'flat' debut despite rise in GMP
Premium- Vedant Fashions shares may have flattish to marginal discounted listing, believe stock market experts
Shares of Vedant Fashions are going to hit Indian bourses today. As per the BSE notice available on the BSE website, the equity shares of Vedant Fashions Limited shall be listed and admitted to dealings on NSE and BSE in the list of 'B' Group of Securities in Special Pre-open Session (SPOS) on Wednesday, February 16, 2022. According to primary market observers, Vedant Fashions share price in grey market is quoting ₹25 premium against its upper price band. However, stock market experts are unmoved by this rise in grey market premium (GMP) and they believe that Vedant Fashions shares may have a 'flat' to 'marginal discounted' debut today.
Speaking on Vedant Fashions IPO listing price; Abhay Doshi, Founder at UnlistedArena.com said, "The issue of Vedant Fashions Limited got a sluggish response as the issue looked very richly priced. The corrections in recently listed stocks and broader market sailing in deep red sea have turned investors cautious. The listing also should be in parallel line as hardly anything is left on table for investors. A flattish to marginal discounted listing is expected."
Expecting discounted opening for Vedant Fashions shares; Aayush Agrawal, Senior Analyst at Swastika Investmart Ltd said, "Vedant Fashions is among the top companies in the Indian wedding and celebration wear segment with the brand name Manyavar Mohey. The company's financials suffered a setback due to the pandemic but returned to normal in the first half of FY22. Vedant Fashions IPO GMP is at par with the upper price band. The ongoing global scenarios will continue to impact the Indian market and hence the shares are expected to list below its issue price."
Echoing with Ayush Agrawal's views; Ravi Singh, Head of Research & Vice President at Share India said, "The valuation of Vedant Fashions IPO looks expensive and investors will not have much space. The primary market sentiments have nosedived amid sell off in broader market. So we expect Vedant Fashion shares to list at a discounted price of around 3-5 per cent."
On Vedant Fashions IPO listing price prediction; Manoj Dalmia, Founder and Director at Proficient Equities Limited said, "The company suffered a setback during the pandemic but maintained its profit in line with top lines. Due to higher valuations and 100 per cent OFS, it received tepid response from investors and we are expecting muted opening for its shares today."
Predicting Vedant Fashions share listing at around 8-10 per cent discount; Likhita Chepa, Senior Research Analyst at CapitalVia Global Research said, "We expect Vedant fashion to list at a discount of 8 to 10 percent although its GMP is signaling at par listing. The issue was subscribed 2.57 times whereas its retail portion was subscribed 0.39 times. Its expensive valuation, impact on its revenue due to the pandemic and 100 percent OFS has already lead to tepid response of the investors. With sell off pressure and increasing volatility in Indian markets we do not expect gains on the listing day from this issue."
Vedant Fashions IPO listing: What GMP signals
As mentioned above, Vedant Fashions IPO GMP today is ₹25, which is ₹23 higher from its yesterday's GMP of ₹2. Primary market observers are of the opinion that such jump in Vedant Fashions IPO grey market premium is because of the change in secondary market sentiment after signs of ease in Russia Ukraine conflict. As Vedant Fashions IPO GMP today is ₹25, it means grey market is expecting Vedant Fashions shares to list around ₹891 ( ₹866 + ₹25), which is near 3 per cent higher from its price band of ₹824 to ₹866 per equity share.
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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