three days Initial Public Offering (IPO) The membership of Vedanta Fashion Limited, the owner of Manyavar, will open today. Issue with price band of 824-866 per share, expiring on February 8. The company said on Thursday that it has acquired 945 crore from anchor investors, ahead of its offering.
According to market observers, Vedanta Fashion shares are up at a premium (GMP) 43. The shares of the company are expected to be listed on the stock exchanges NSE and BSE on February 16, 2022 in gray market.
Analysts like KR Choksi have focused on growth by doubling their foot print in both the domestic and international market in the near future. They believe that VFL will continue to develop the three new existing brands in its portfolio while it continues to explore inorganic growth opportunities.
“VFL has a strong balance sheet with no debt and an asset light model. Keeping these positives in mind, we recommend “Subscribe for Long Term Benefits”, KR Choksi said in an IPO note.
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.
The brokerage angel said, “Vedanta Fashion has high operating margins, asset light business, strong brand and wide range of products, but we believe these positives are captured in the company-controlled valuations. Thus, we have There is a neutral rating on this issue.” In an IPO note.
As of September 2021, the company has an extensive retail network with 546 exclusive brand outlets (EBOs), including 58 shop-in-shops globally, including 11 overseas EBOs in the United States, Canada and the United Arab Emirates. Huh.
Choice Broking views the issue as aggressively priced and leaves no margin of safety for the investors. “Thus it cautions on the valuation front. Also, higher level of realizations (average of sales in FY 2019-FY21 ~50%) may further reduce OCF margins. Considering all parameters We give this issue a ‘Subscribe With Caution’ rating.”
The initial share sale of the company is purely an offer for sale (OFS) of 36,364,838 equity shares by the promoters and existing shareholders.
Brokerage firm Religare Broking said in a note, “Given its leadership position in the Indian celebration wear market, Vedanta is well positioned to benefit from the rising industry trends. Though the valuations look elevated, the company has long-term growth prospects. remains promising.”
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