What are the risk factors in Vedant Fashions IPO?
1. The covid-19 pandemic has adversely affected the company and may affect in the future too
2. They are highly dependent on Indian wedding wear business
3. The company has various brands but most of the revenue is from the Manyavar brand
4. They are significantly dependent on their franchise model
5. The warehouse and jobbers of the company are concentrated in a single region Kolkata
6. The net IPO proceeds will directly go to the selling shareholders and the company will get any fund from it
7. The company depends on weddings and seasons and therefore sales may have variations
8. There are outstanding legal proceedings against the company’s directors and promoters
9. Company has certain contingent liabilities which if materializes will adversely affect the business
10. Company’s PAT is declining over the years
What are the competitive strengths of Vedant fashions IPO?
1. The company is a market leader in Indian ethnic wear combining different brands catering to all age groups
2. Company has an omnichannel network integration of both online and offline stores
3. It has a strong brand presence over the Indian ethnic market with the brand named Manyavar
4. Company has three different brands named Twamev, Manyavar & Manthan all three are for different economy classes with different pricing
5. According to Reports Indian wedding and celebration culture is growing over the years for which their business is also growing
6. Company is managed by a strong experienced and professional team
What are the strategies Company follow towards their growth?
1. Vedant Fashions plans to expand its business throughout India and also in the foreign countries
2. The company plans to scale up its emerging brands through the same retail channel
3. Company has also its strategic acquisition plans
What is Vedant Fashions Ltd’s business model?
Products include men’s ethnic and celebration wear items such as Indo-western, sherwanis, kurtas, jackets and accessories such as jutti, safa, mala, and women’s ethnic and celebration wear items such as lehengas, sarees, stitched suits, gowns, and Kurtis
- Manyavar: Kurtas, Indo-westerns, Sherwanis, jackets and accessories. Kids wear – kurta set, jacket set, Indo-westerns, accessories
- Mohey: Lehengas, sarees gowns and accessories
- Mebaz: Menswear – Kurtas, Indo-westerns, Sherwanis, jackets, suits and accessories. Womenswear – Lehengas, sarees, stitched suits and kurtis. Kids wear – Lehengas, gowns, frocks, kurtas, suits and accessories
- Manthan: Kurtas
- Twamev: Kurta sets, Sherwanis, Indo-westerns, suits and accessories
Who are the promoter’s of Vedant Fashions Limited?
Ravi Modi, Shilpi Modi, and Ravi Modi Family Trust are the company promoters.
How are the Company Financials?
- Company has shown declining revenue over the past three years
- Also, company has shown fallen PAT over the years, mostly because Covid-19
|Financial Year Ended||Revenue (₹ Crores)||PAT (₹ Crores)||EPS (₹)|
|The period ended September 30, 2021||387.29||98.41||4.01|
What are the objects of Vedant Fashions IPO net proceeds?
The offer comprises of offer for sale of 36,364,838 Eq Shares amounting to ₹3,149.19 Cr, As the entire proceeds is of an offer for sale, so the company will not be benefitted from it apart from listing gains.
Vedant Fashions IPO open & close date
IPO open date is: 4th Feb 2022
IPO close date is: 8th Feb 2022
Vedant Fashions IPO allotment, refund & listing date
Vedant Fashions IPO allotment date is: 11th Feb 2022
IPO refund date is: 14th Feb 2022
IPO listing date is: 16th Feb 2022
Vedant Fashions IPO allotment status
Vedant Fashions IPO GMP (Grey Market Price) today
|DateFEBDate||GMP ( ₹ )||Premium (%)||Expected Listing Price|
|JAN 31, 2022||Rs 85||9.82%||Rs 951|
|FEB 01, 2022||Rs 32||3.70%||Rs 898|
|FEB 02, 2022||Rs 32||3.70%||Rs 898|
|FEB 03, 2022||Rs 50||5.77%||Rs 916|
|FEB 04, 2022||Rs 36||4.16%||Rs 902|
|FEB 05, 2022||Rs 35||4.04%||Rs 901|
|FEB 06, 2022|
|FEB 07, 2022|
|FEB 08, 2022|
|FEB 09, 2022|
|FEB 10, 2022|
|FEB 12, 2022|
|FEB 13, 2022|
|FEB 14, 2022|
|FEB 15, 2022|
|FEB 16, 2022|
Vedant Fashions IPO details, price band, & RHP
|IPO bidding date||04 Feb 2022 – 08 Feb 2022|
|Price range||824 – 866|
|Minimum order quantity||17|
Vedant Fashions IPO live subscription status
|Qualified Institutional Buyers (QIB)||Noninstitutional bidders (NII)||Retail individual investors (RII)||Total no of shares offered|
|No of shares offered|
|Date||Qualified Institutional Buyers (QIB) (No of times)||Noninstitutional bidders (NII) (No of times)||Retail individual investors (RII) (No of times)||Total subscription (No of times)|
|04th FEB 2022||0.06x||0.06x||0.22x||0.14x|
|05TH FEB 2022||0.00x||0.00x||0.00x||0.00x|
|07TH FEB 2022||0.00x||0.00x||0.00x||0.00x|
Vedant Fashions IPO valuation (Overpriced or not?)
Calculating valuation with its upper price band of Rs 866
FY-21 EPS is = 5.36
6 months Sep 21 EPS is = 4.01
Workings & calculation of P.E
FY-21 EPS is = 5.36, 866/5.36 = 161.5x P.E
6 months ended Sep 21 EPS is= 4.01, 866/4.01 = 215.96x , but after annualizing 215.96/2 = 107.98
Hence, the company is asking P.E ranging between 108x to 161.5x
The IPO is highly-priced
Vedant fashions Listed Peers
As of now, there are no such listed peers for Vedant Fashions Ltd
Vedant Fashions IPO is good or bad? (review)
Vedant Fashions is a market leader in the Indian ethnic and celebration wear catering to all age groups and different class people allocated to different brands, namely Manyavar, Manthan, Twamev, Mohey & Mabez, The company has a pan-India presence through its retail and omnichannel network of both offline and online.
As of September 30, 2021, the company had 535 EBOs (exclusive brand outlets) spanning 212 cities and towns in India, and 11 EBOs overseas across the United States, Canada, and the UAE.
Discussing its financials it has been performing well pre covid but after covid, the financials are highly affected, still, the company has a good brand presence and may bounce back after the pandemic is over, but at the current IPO pricing it is overvalued and can be ignored for now, later if the price breaks down it will be a good investment.
Steps to apply in Vedant Fashions IPO through Zerodha
Visit the Zerodha website and log in to Console.
Go to Portfolio and click the IPOs link.
Go to the Vedant Fashions IPO row and click the ‘Bid’ button.
Enter your UPI ID, Quantity, and Price.
‘Submit’ IPO application form.
Visit the UPI App (net banking or BHIM) to approve the mandate.
Minimum: Rs 14722
Maximum: Rs 191386
For retail investors