Vedant Fashions IPO: Manyavar's shares will be listed today, weak listing forecast

Vedant Fashions IPO: Manyavar’s shares will be listed today, weak listing forecast

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Vedant Fashions IPO: Vedant Fashions IPO will be listed today amid the volatility in the market. The listing of shares of Vedant Fashions, a company that sells traditional apparel from the Manyavar brand, is estimated to be weak. The issue of the company had received a weak response from the investors, due to which the listing of its shares is likely to remain weak.

According to market experts, the shares of Vedant Fashions may get listed at the issue price or at a discount. The issue price of Vedant Fashions is Rs.866. 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. Apart from this, many experts are telling more about the valuation of the company, which can have an impact on the listing price.

Retail investors did not show much interest in IPO
Vedanta Fashions is the country’s largest manufacturer of Indian vending and ethnic wear for men. Its issue opened on 4 February and closed on 8 February. The issue of the company was subscribed 2.57 times. 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.

Expected to list below issue price
Even in the gray market, the shares of Vedanta Fashions were trading at the same issue price. Agarwal said, “The impact of the ongoing volatility on the global level is expected to continue on the Indian stock market as well. Hence, the stock is expected to list below its issue price. Aastha Jain, Senior Research Analyst, Hem Securities, also expects the issue to be listed flat or at a discount of a few per cent.

Vedanta Fashions has hugely popular clothing brands like ‘Manyavar’ and ‘Mohey’ which have a pan-India presence. Other important brands of the company are Manthan, Tvmev and Mebaaz.

Tags: IPO, Share allotment, Share market, IPO

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