The Rs. 3149 crore Vedant Fashions IPO is all set to hit markets on 4th February 2022 and will be open for subscription till 8th February 2022. The company offers a wide range of celebration wear and its popular brands include Manyavar, Mohey, Mebaz, Manthan and Twamev.
Besides, exclusive franchisee-owned EBOs (EBOs) and its website, the company also offers its products through multi-brand outlets, large format stores and online platforms. The company has a widespread retail footprint across India, USA, UAE and Canada.
Some quick facts about the Vedant Fashions IPO:
The price band for the Vedant Fashions IPO is between Rs. 824 to Rs. 866 per share.
The minimum lot size for the IPO is of 17 shares.
The issue size for Vedant Fashions IPO is Rs. 3149 crores.
Shares of Vedant Fashions are likely to be listed on 16th February 2022.
Key strengths and opportunities
- Top ranking player in the Indian celebration wear market
- Diverse product offerings with multiple brands catering to the aspirations of the entire family
- Increasing demand for branded apparel in Indian wedding and celebration wear market
- Experienced and professional management team
- Widespread retail footprint through multiple channels across India, USA, UAE and Canada
- Technology driven strong supply chain and inventory replenishment systems
- Longstanding relationships with vendors
Key factors to keep in mind while investing in the Vedant Fashions IPO:
In its Red Herring Prospectus, the company has listed some factors which may impact the future performance of the company, such as:
- The company’s business is mainly focussed on Indian wedding and celebration wear and any changes in consumer preferences could have an adversely affect its business
- The company’s inability to renew maintain, renew or enhance relationships with its franchisee-owned EBOs that generate a significant portion of sales, could adversely affect its business
- Pricing pressure from the company’s competitors may affect the company’s ability to maintain or increase its product prices thus affecting its revenue from product sales, gross margin and profitability
- There is intense competition in the Indian celebration wear market where the company operates from several regional brands, unorganized retailers as well online retailers
- The COVID-19 pandemic or any other pandemic arising in future could adversely affect the company’s business
- For detailed information on the risks associated with the IPO, please refer to the Red Herring Prospectus
To invest in the Vedant Fashions IPO click here.
– Written and contributed by Pradeep Sukumaran.