Manyavar owner Vedant Fashions sets IPO price band at Rs 824-866 per share

Vedant Fashions Ltd, which owns ethnic wear brand Manyavar, on Friday fixed a price band of Rs 824-866 a share for its Rs 3,149-crore initial public offering (IPO).

The initial share-sale will open on February 4 and conclude on February 8. The bidding for anchor investors will open on February 3, according to the company.

The public issue is purely an offer for sale of 36,364,838 equity shares by promoter and existing shareholders.

The OFS comprises sale of up to 1.74 crore shares by Rhine Holdings Ltd; up to 7.23 lakh shares by Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF I; and up to 1.81 crore shares by Ravi Modi Family Trust.

The promoters of the company are Ravi Modi, Shilpi Modi and Ravi Modi Family Trust.

Since, the IPO is entirely an offer for sale, the company will not receive any proceeds from the public issue.

At the upper end of the price band, the public issue is expected to fetch Rs 3,149 crore.

Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Investors can bid for a minimum of 17 equity shares and in multiples thereof.

Vedant Fashions' Manyavar brand is a category leader in the branded Indian wedding and celebration wear market with a pan India presence. The company's other brands include Twamev, Manthan, Mohey and Mebaz.

As of September 2021, the company has an extensive retail network with 546 exclusive brand outlets (EBOs) including 58 shop-in-shops globally, including 11 overseas EBOs across the United States, Canada and the UAE, which are countries with a large Indian diaspora.

In India, the company's EBO network spans across 212 cities and towns, as of September 2021.

"We seek to grow our retail network and product reach by entering new geographies, including in Tier II and III towns and cities in India, as we believe that these markets offer significant growth opportunities for us," the company said in the red herring prospectus.

Axis Capital, Edelweiss Financial Services, ICICI Securities, IIFL Securities and Kotak Mahindra Capital are the book-running lead managers to the issue.