Vedant Fashions Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
Participate in the Vedant Fashions Ltd IPO with full transparency. Review issue details, company fundamentals, and financial performance, and apply securely through Alice Blue.
IPO Snapshot
Key metrics and details at a glance.
Price Band
₹866
Per ShareLot Size
17 Shares
Minimum Investment
₹14,722
Issue Size
₹2,996.46 Cr
Face Value
₹1
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Vedant Fashions Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
76.38%
Promoter Holding (Post-Issue)
68.89%
Issue Type
Book Building
ISIN
INE825V01034
About the Company
According to CRISIL, Vedant Fashions Limited is the largest company in India in the men's Indian wedding and celebration wear segment in terms of revenue, OPBDIT and profit after tax for the Financial Year 2020. Moreover, its `Manyavar' brand is a category leader in the branded Indian wedding and celebration wear market with a pan India presence. Through our multi-channel network, the company forecasts and launch on-trend designs of a diverse range of attires and accessories for every celebratory occasion, and cater to the needs of its customers through its portfolio of leading and differentiated brands.
Industry Overview
CRISIL estimates the Indian wedding and celebration wear apparel market to grow at a 15% to 17% over Financial Years 2022 to 2025, with an estimated 9.5 million to 10 million weddings per year. The average expenditure on Indian weddings ranges from Rs. 1 million to Rs. 2 million for a single-day function, with multi-day and multi-event weddings now an increasing trend in urban India. Consumers are also increasingly preferring ready-to-wear Indian wedding and celebration wear with the branded celebration wear market expected to grow at 18% to 20% as consumers migrate towards branded Indian wedding and celebration wear.
Company History
Vedant Fashions Limited was originally incorporated as "Vedant Fashions Private Limited" at Kolkata, West Bengal as a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated May 24, 2002, issued by the Registrar of Companies, West Bengal at Kolkata ("RoC"). Pursuant to a takeover agreement dated June 1, 2002, the business of a proprietorship firm by the name of "M/s Vedant Creation", which was being carried out by one of its individual Promoters namely Ravi Modi, was transferred to the Company as a going concern. Subsequently, the Company was converted into a public limited company under the Companies Act, 2013, pursuant to the approval accorded by its Shareholders at their extra-ordinary general meeting held on July 16, 2021. Consequently, the name of the Company was changed to "Vedant Fashions Limited" and a fresh certificate of incorporation consequent upon conversion from a private limited company to a public limited company was issued to the Company by the RoC on August 25, 2021.
Products & Services
- Vedant Fashions Ltd is the largest company in India in the men's Indian wedding and celebration wear segment in terms of revenue.
Growth Strategy
- Expansion of footprint within and outside India
- Scaling up its emerging brands through increased up-selling and cross-selling initiatives
- Enhancement of brand appeal through targeted marketing initiatives
- Significant potential and space for growth of its emerging brands
- Disciplined approach towards acquisitions
Customer Base
Wholesalers and Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 36,364,838 equity shares of face value of Re. 1 each ("Equity Shares") of the company for cash at a price of Rs. 866 per equity share ("Offer Price") aggregating to Rs. 3149.19* crores ("Offer"). the offer comprises of an offer for sale of 36,364,838 equity shares ("Offered Shares") aggregating to Rs. 3149.19* crores, comprising of 17,459,392 equity shares aggregating to Rs. 1511.98* crores by Rhine Holdings Limited, 723,014 equity shares aggregating to Rs. 62.61* crores by Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF 1 and 18,182,432 equity shares aggregating to Rs. 1574.60* crores by Ravi Modi Family Trust (acting through its trustee, Modi Fiduciary Services Private Limited) (together the "Selling Shareholders" and such offer, the "Offer for Sale"). The offer shall constitute 14.98% of the post-offer paid-up equity share capital of the company. *Subject to finalisation of the basis of allotment. The cash price at Rs. 866 i.e. 866 times of the face value. Bids can be made for a minimum of 17 equity shares and in multiples of 17 equity shares thereafter.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Market leader in the Indian celebration wear market with a diverse portfolio of brands catering to the aspirations of the entire family;
- Large and growing Indian wedding and celebration wear market driven by an increased spending on such wear
- Differentiated business model combining the strengths of retailing with branded consumer play;
- Omni-channel network with the seamless integration of its online and offline channels;
- Technology-based strong supply chain and inventory replenishment systems driven by systemwide data analytics, strong processes and longstanding vendor relationships
- The Offer Price, market capitalization to revenue multiple and price to earnings ratio based on the Offer Price of its Company, may not be indicative of the market price of the Company on listing or thereafter.
- The cumulative cost of the total number of stores opened by its Company or Franchisees across regions may not be indicative of the market capitalization of its Company after the Offer as the basis are independent of each other.
- The COVID-19 pandemic or any future pandemic or widespread public health emergency could adversely affect its business, results of operations, financial condition and cash flows.
- Its business is highly concentrated on Indian wedding and celebration wear and vulnerable to variations in demand, as well as changes in consumer preferences which could have an adverse effect on its business, results of operations and financial condition.
- Its business prospects depend on the strength of its key brands, and any failure to maintain or grow sales of its products could adversely affect the company business.