Vedant Fashions IPO: Shares of Vedant Fashions, owner of the ethenoc brand Manyavar, will make their debut in D-Street on Wednesday, February 16. The offer was purely a sell offer by the promoters and existing shareholders – by Rhine Holdings, Kedaara Capital Alternative Investment Fund; and the Ravi Modi Family Trust, owned by Ravi and Shilpi Modi.
While Manyavar is a category leader in the branded wedding and celebration apparel market, its other brands include Twamev, Manthan, Mohey, and Mebaz and 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 subscriptions 7.49 times, the non-institutional investor portion was subscribed 1.07 and the retail investor portion received only 39 percent subscription, which had a price range of Rs 824-866 per part.
Vedant Fashions IPO: GMP
According to market observers, Vedant Fashions’ stock price is trading at the same level as its top price band in today’s gray market. Market observers said Vedant Fashions IPO GMP is nil today, meaning the gray market expects ‘par-listing’ from Vedant Fashions IPO. They said the gray market has remained highly volatile with negative bias over the past few sessions. This led to a collapse of Vedant Fashions’ IPO GMP which was once Rs 65. But as a result of the escalation of the Ukraine conflict in Russia, which has fueled global inflation worries,
However, secondary market experts suggested that the allottes not be influenced by these negative sentiments emanating from the gray market and advised them to stick to the company’s fundamentals.
Vedant Fashions IPO: View Predictions
Prashanth Tapse, vice president (research), Mehta Equities Ltd., said: “Given the lower than expected subscription requirements (QIB: 7.49x/NII: 1.07x/ Retail: 0.39x) for the initial public offering (IPO), we expect a par or discounted listing in the volatile markets We believe the reason for the low demand would be investor concerns about the 100 percent OFS offering followed by dented sell sentiments at the recently quoted IPO trading on the We also see a few more worrying points such as expensive valuations that leave nothing on the table for new investors and factors such as the Russia-Ukraine conflict, global inflation worries and rising crude oil prices could be both in the near term. affect the primary as well as the secondary markets.”
“We recommend conservative investors get out on listing day at the value they can make and if unallocated investors want to buy on listing day, it is better to wait and look for better discount prices, while risk takers may want to consider to keep it as high-risk high-return with a long-term perspective,” Tapse said.
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