Manyavar-owner Vedant Fashions has filed a draft red herring prospectus with the capital industry regulator SEBI to launch an IPO. Vedant Fashions has 3 distinctive brands in the men’s ethnic and celebration put on industry, Manyavar, Twamev and Manthan, a women’s ethnic and celebration put on brand, Mohey, as effectively as a regional heritage brand, Mebaz. The public problem will be an give for sale by current shareholders and will not consist of a fresh problem of equity share. The total give for sale (OFS) of 3.63 crore shares will incorporate 1.74 crore shares by Rhine holdings Ltd, up to 7.23 lakh by Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF 1 and up to 1.81 crore equity shares by Ravi Modi Family Trust.
Axis Capital, Edelweiss Securities, ICICI Securities, IIFL Securities and Kotak Mahindra Capital are the investment bankers to the problem. KFin Technologies Private Ltd will be the registrar to the problem. There are no listed corporations in India that engage in a company comparable to that of Manyavar-owner Vedant Fashions. The organization will not acquire any proceeds from the give. The promoting shareholders will be entitled to the complete proceeds of the give immediately after deducting the give expenditures and relevant taxes thereon. The promoters of the organization are Ravi Modi, Shilpi Modi and Ravi Modi Family Trust.
Vedant Fashions, in its DRHP, mentioned that any equity shares allotted to anchor investors in the anchor investor portion shall be locked in for a period of 30 days from the date of allotment. The organization mentioned that the extended-term development in the domestic industry will be driven by increasing working population and earnings levels, greater penetration of organized retail retailers and e-commerce, and increasing preference for RMG more than tailor-made garments. The share of men’s put on, which accounted for around 42% in FY20, is estimated to have elevated to around 43% in FY21, as females and kids had been confined mainly to residences, major to a fall in the contribution of women’s put on in FY21.
Apparel retailing of men’s put on has created at a affordable pace more than the years, with early entrants such as Raymond, Arvind Brands, Zodiac, Manyavar. The ethnic apparel retail industry grew at around 9 per cent CAGR more than FY15- FY19 in line with the all round apparel retail industry in the previous. The big wedding industry and festivals all through the year are powerful basic drivers of the organized ethnic put on industry in India for the extended term. With extended-term development components remaining intact and celebrations continuing to drive ethnic-put on sales, the notion of pent-up demand is quite relevant in Indian wedding and celebration put on, as opposed to other customer categories, as a result driving development greater.