Vedant Fashions IPO: Shares of Vedant Fashions, which owns the ethenoc brand Manyavar, will be making their D-Street debut on Wednesday, February 16. The Manyavar IPO offering was purely an offer-for-sale by the promoters and existing shareholders — by Rhine Holdings, Kedaara Capital Alternative Investment Fund; and the Ravi Modi Family Trust owned Ravi and Shilpi Modi.
While Manyavar is a category leader in the branded wedding and celebration wear market, its other brands include Twamev, Manthan, Mohey, and Mebaz and it competes with Aditya Birla Fashion Retail, Trent, Metro Brands and TCNS Clothing Company.
Vedant Fashions IPO: Subscription Status
The qualified institutional buyers category received maximum demand with 7.49 times subscription, non-institutional investors’ part was subscribed 1.07 times and retail investors’ portion obtained only 39 per cent subscription, which had a price range at Rs 824-866 per share.
Vedant Fashions IPO: GMP
According to market observers, Vedant Fashions share price is quoting at par with its upper price band in grey market today. Market observers said that Vedant Fashions IPO GMP today is zero that means grey market is expecting ‘par listing’ of Vedant Fashions IPO. They said that grey market has remained highly volatile with negative bias in last few sessions. This led to slump in Vedant Fashions IPO GMP, which was once at Rs 65. But, due to the escalation in Russia Ukraine conflict leading to rise in global inflation worries,
However, secondary market experts suggested allottees to remain unmoved by these negative sentiments coming in from the grey market and advised them to stick with the fundamentals of the company.
Vedant Fashions IPO: Listing Predictions
Prashanth Tapse, vice president (research), Mehta Equities Ltd., said: “Considering lower-than-expected subscription demands to its initial public offering (IPO), we expect at par or discounted listing show in the volatile markets. We believe the reason behind low demand would be on investors’ concern over 100 per cent OFS offer followed by denting selloff sentiments in the recently listed IPO which failed to perform on the listing day. We also see a few more concerning points like expensive valuations leaving nothing on table for new investors and factors like Russia-Ukraine conflict, Global inflationary concern and rising crude prices would impact primary as well as secondary markets in near term.”
“We recommend conservative investors to exit on listing day at whatever value they can make it and if non-allotted investors wish to buy on a listing day it is better to wait and watch for better discounted pricing, while risk takers may consider holding it as high risk high return with a long term perspective,” Tapse said.
“The company’s grey market share price 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,” said Aayush Agrawal, senior analyst, Swastika Investmart Ltd.