Vedant Fashions IPO: Manyavar shares listed above issue price by Rs 70

Vedant Fashions IPO: Manyavar shares listed above issue price by Rs 70


Vedant Fashions IPO: The shares of Vedant Fashions have also been listed above the issue price. Shares of Vedant Fashions are listed on BSE at Rs 936, up 8% i.e. Rs 70 from its issue price. Whereas its shares are listed on NSE at a premium of 7.97% i.e. Rs 69 above the issue price at Rs 935. The IPO of Vedant Fashions, a company that sells traditional wear from the Manyavar brand, did not receive a very good response, leading market experts to speculate that the shares of Vedant Fashions may be listed flat or at a discount.

The IPO of Vedant Fashions was purely offer-for-sale (OFS). That is, the fund raised from the IPO will not go to the company, but all the money will go to the promoters and shareholders. The issue of the company opened on 4 February and closed on 8 February. The issue price of Vedant Fashions was Rs.866.
The issue of the company was subscribed 2.57 times.

Investors did not show interest in IPO
However, retail investors did not show much interest in the IPO of Vedanta Fashions and got only 31 per cent of the bids reserved for them. On the other hand, the share reserved for Qualified Institutional Buyers (QIBs) was subscribed the most at 7.49 times, while the share of Non-Institutional Investors (NIIs) got subscribed 1.07 times.

Also read- To participate in LIC IPO, policyholders will have to update PAN by this date, otherwise they will not get shares

Expert found IPO a bit expensive
Ayush Aggarwal, Senior Analyst, Swastika Investmart said, “The company’s financial figures were badly affected during the corona epidemic, but it returned to normal levels again in the first half of FY 2022. Based on FY21 earnings, the issue is valued at 161 times its P/E and 24.42 times the price to book value, which looks a bit expensive.

Tags: IPO, Share allotment, Share market, IPO


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