Vedant Fashions Private Ltd, which owns ethnic wear brand Manyavar, has started the work for its proposed initial public offering (IPO) of about Rs 2,000 crore.
Founded by Ravi Modi in 1999, Vedant Fashions introduced celebration wear for women under Mohey brand in 2016. It also acquired Mebaz, one of the biggest fashion brands in southern India, in 2017.
"The work on the IPO officially began last week. The company has hired investment banks Kotak, Axis, Isec and IIFL to prepare its draft red herring prospectus. It seeks to raise Rs 2,000 crore or more through the IPO, with existing private equity investor Kedaara Capital expected to sell a significant part of its stake," Mint quoted a source as saying.
Details about share sale like size of primary and secondary offerings are yet to be finalised, the source said.
Kedaara Capital, which invested around Rs 250-300 crore in the retailer in 2017, has around 7.5 per cent stake in the company, while Modi and his family hold the remaining stake.
Quoting another source, the publication said consumption demand is expected to boom post-pandemic, with demand making a strong come back post relaxations in local lockdowns.
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