Vedant Fashions – Manyavar IPO Review

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

IPO opens onFeb 4, 2022
IPO ends onFeb 8, 2022
Face valueRs 1 per equity share
IPO PriceRs 824 to 866 per share
Fresh issue amount0
Offer for sale3149.19 Cr
Market Lot Size17 shares
Min lot per retail investor1 lot (17 shares) – Rs 14722
Max lots per retail investor13 lots (221 shares) – Rs 191386
(assuming higher band price)
Offer dicumentVedant Fashion offer document
Subscription status

Pre and Post IPO Valuation

Outstanding equity share prior to offer224249848 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 Revenue387.2108.9625.0947.9819.8
Net profit98.4-17.6132.9236.6176.4
Revenue growthNA-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.

Also see: Review video