IPO is purely an offer for sale, the company will not receive any proceeds from the public issue.
Vedanta Fashion Ltd, which owns ethnic wear brand Manyavar, has received capital markets regulator SEBI’s nod to raise funds through initial share-sale.
As per the Draft Red Herring Prospectus (DRHP), the Initial Public Offering (IPO) is purely an offer for sale of 36,364,838 equity shares by the promoter and existing shareholders.
The offer-for-sale includes the sale of 1.74 crore shares by Rhine Holdings Limited; Up to 7.23 lakh shares held by Kedara Capital Alternative Investment Fund-Kedara Capital AIF I; and up to 1.81 crore shares by Ravi Modi Family Trust.
The company, which had filed its initial IPO papers with SEBI in September, received its observation letter on January 18, an update with SEBI showed on Monday.
In SEBI parlance, observation refers to approval to launch an IPO.
The promoters of the company are Ravi Modi, Shilpi Modi and Ravi Modi Family Trust.
Since, the IPO is purely an offer-for-sale, the company will not receive any proceeds from the public issue.
The “Manyavar” brand of Vedanta Fashions is a category leader in the branded Indian Wedding and Celebration Wear market with a pan India presence. The company’s other brands include Tvmev, Manthan, Mohe and Mebaaz.
As of June 30, 2021, the company has a retail network with 537 Exclusive Brand Outlets (EBOs), which includes 55 shop-in-shops globally. It has 12 overseas EBOs in the United States, Canada and the United Arab Emirates, countries with a large Indian diaspora.
The company had said in the draft, “We intend to expand our retail network and product reach by entering into new geographies including Tier-II and Tier-III towns and cities in India, as we believe that these markets are the best for us. provide significant growth opportunities.” documents.
Axis Capital, Edelweiss Financial Services, ICICI Securities, IIFL Securities and Kotak Mahindra Capital are the book running lead managers of the issue.
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