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Vedant Fashions stock makes tepid market debut, lists at 8% premium to issue price

Vedant Fashions stock makes tepid market debut, lists at 8% premium to issue price

Stock of Vedant Fashions Limited, the owner of ethnic wear brands such as 'Manyavar' and 'Mohey', made its market debut at Rs 936 on BSE.

On NSE, Vedant Fashions stock listed at Rs 935, up 7.97% to the IPO issue price. Market cap of the firm rose to Rs 11,587 crore. On NSE, Vedant Fashions stock listed at Rs 935, up 7.97% to the IPO issue price. Market cap of the firm rose to Rs 11,587 crore.

The shares of Vedant Fashions listed at a premium of 8.08% to their issue price on BSE today. Stock of Vedant Fashions Limited, the owner of ethnic wear brands such as 'Manyavar' and 'Mohey', made its market debut at Rs 936 on BSE.

The issue price of the IPO stood at Rs 866.

Market cap of Vedant Fashions rose to Rs 22,716 crore. Total 0.41 crore shares of the firm changed hands amounting to a turnover of Rs 3.83 crore on the BSE.

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On NSE, the stock listed at Rs 935, up 7.97% to the IPO issue price. Market cap of the firm rose to Rs 11,587 crore.

Total 24.57 lakh shares of the firm changed hands amounting to a turnover of Rs 229.77 crore on the NSE. The IPO was held from February 4 to February 8.

The issue was subscribed 2.56 times on its third and final day. It received bids for 6.52 crore equity shares against an offer size of 2.54 crore equity shares.

The retail portion was subscribed 39 per cent, while that for institutional and wealthy investors portion was subscribed 7.49 times the size allocated for them.

The portion set aside for non-institutional investors was subscribed 1.07 times. Vedant Fashions received SEBI's approval to launch the IPO on January 24. The issue is purely an offer-for-sale (OFS) of 3,63,64,838 equity shares by the promoter and existing shareholders.

Shares were available during the IPO in a price band of Rs 824 to Rs 866 per equity share.

The OFS comprised sale of up to 1.74 crore shares by Rhine Holdings Ltd; up to 7.23 lakh shares by Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF I, and up to 1.81 crore shares by Ravi Modi Family Trust. Axis Capital, Edelweiss Financial Services, ICICI Securities, IIFL Securities and Kotak Mahindra Capital were the book running lead managers to the issue.

The allotment of shares was done on February  11, 2022. Lot size of the IPO was 17 shares for which one would have to spend Rs 14,722.

A retail individual investor could apply for up to 13 lots or 221 shares by spending Rs 1,91,386.

Vedant Fashions'  'Manyavar' brand is a category leader in the branded Indian wedding and celebration wear market with a pan India presence. The company's other brands include Twamev, Manthan, Mohey and Mebaz.

Published on: Feb 16, 2022, 10:03 AM IST
Posted by: Aseem Thapliyal, Feb 16, 2022, 9:58 AM IST