Vedant Fashions – Manyavar is the largest company in India in the men’s Indian wedding and celebration wear segment in terms of revenue and profit. Manyavar brand is a category leader in the branded Indian wedding and celebration wear market with a pan India presence.
IPO Details
| Promoters | ARE RAVI MODI, SHILPI MODI AND RAVI MODI FAMILY TRUST |
| IPO opens on | Feb 4, 2022 |
| IPO ends on | Feb 8, 2022 |
| Face value | Rs 1 per equity share |
| IPO Price | Rs 824 to 866 per share |
| Fresh issue amount | 0 |
| Offer for sale | 3149.19 Cr |
| Market Lot Size | 17 shares |
| Min lot per retail investor | 1 lot (17 shares) – Rs 14722 |
| Max lots per retail investor | 13 lots (221 shares) – Rs 191386 (assuming higher band price) |
| Offer dicument | Vedant Fashion offer document |
| Subscription status |
Pre and Post IPO Valuation
| Outstanding equity share prior to offer | 224249848 Equity Shares |
| Pre-IPO Market cap (assuming higher band price) | Rs 19420 Cr |
| Post-IPO Market cap (assuming higher band price) (Pre-IPO Market cap + Fresh Issue) | Rs 19420 Cr |
Sales and Profit/Loss data
Here is Vedant Fashions’s revenue/sales and net profit data in INR Crores
| Sep 30 2021 (6 months) | Sep 30 2020 (6 months) | Mar 31 2021 (1y) | Mar 31 2020 (1y) | Mar 31 2019 (1y) | |
| Total Revenue | 387.2 | 108.9 | 625.0 | 947.9 | 819.8 |
| Net profit | 98.4 | -17.6 | 132.9 | 236.6 | 176.4 |
| Revenue growth | NA | -43.8% | 34.1% |
Is Company valuation justified
Market cap/Sale = 31
Vedant Fashions IPO is offer for sale and there is no fresh offer. Its post IPO market cap is Rs 19420 Cr. at the upper band of IPO price and its total sale is Rs. 625.0 Cr in 2020-21. The ratio of market cap to sale is very high and considering the limited growth history, it is not justified.
Final Conclusion
Due to high valuation in comparison to sale, it is not recommended to apply for this IPO.
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