Vedant Fashions, which is owned by Manyavar, had a strong launch and is listed at a premium
- ByStartupStory | February 16, 2022
Vedant Fashions, which sells Indian wedding and festival attire, had a good first day of trading, as the stock opened at an 8% premium to its issue price of Rs 866. After AGS Transact Technologies and Adani Wilmar, it was the third company to list on the stock exchanges in 2022.
On the BSE, the stock opened at Rs 936, while on the NSE, it opened at Rs 935.
Given the lukewarm reception from investors, high prices, the comprehensive offer for sale issue, and market instability, the listing was expected.The first public offering of Vedant Fashions received 2.57 times subscription from February 4 to 8, with qualified institutional purchasers providing the most support, with their reserved part being subscribed 7.49 times. Non-institutional investors and retail investors, on the other hand, had a tepid response, with their permitted quotas being booked 1.07 times and 39 per cent, respectively.
The company collected Rs 3,149.19 crore through a public offering that was wholly composed of promoter and investor offers for sale. As a result, the corporation did not issue proceeds because the selling shareholders got the IPO money. The offer’s price range was Rs 824-866 per share.
The issue had been suggested by the majority of experts for long-term benefits rather than listing profits.
In terms of financials, the firm reported a 44 per cent drop in profit for FY21, to Rs 132.90 crore, and a 38.3 per cent drop in sales, to Rs 564.82 crore, then in the last year, due to Covid-led lockdowns.
Follow Startup Story
Related Posts
