Manyavar IPO: Vedanta Fashion is not being given ‘bhaav’ by investors, so far only 16% subscribed issue
Investors stayed away from Manyavar’s parent firm Vedanta Fashions Limited’s IPO even on the second day. As of 3:20 p.m. on the second day of subscription, this issue has only 0.16 subscriptions.
Manyavar IPO Subscription Status: Vedanta Fashions Limited (Vedant Fashions), the parent company of ethnic wear brand Manyavar, has stayed away from investors even on the second day of its IPO. In the midst of market turmoil, the issue is receiving a very slow reaction. The issue was just 0.16 times subscribed as at 3:20 p.m. on the second day of subscription. Every section of the market, including retail investors, qualified institutional investors, and non-institutional investors, is experiencing a downturn. The issue will be available for purchase until February 8th. The company’s initial public offering (IPO) is totally for sale (OFS). The company has set the price band for the IPO at Rs 824-866 per share. The total number of shares in the lot is 17.
Which part is full
In the IPO of Vedant Fashions, 35 per cent is reserved for retail investors. It has been filled 0.25 times so far. 50 percent is reserved for QIB ie Qualified Institutional Investors. It is filled 0.06 times so far. Whereas 15 per cent is reserved for non-institutional investors and it is filled 0.07 times so far. Overall this issue has been subscribed only 0.16 times.
Here are the details of IPO
The IPO price band has been set at Rs 824-866 per share by Vedant Fashions. There are 17 shares in a single lot. That is to say, at least 17 shares must be purchased. It will be necessary to invest at least Rs 14,722 in the upper price band of Rs 866. You can only apply for a maximum of 13 lots. The maximum investment limit for this issuance is Rs 191,386.
Important date
On February 11, shares will be distributed, and on February 14, money will be sent to the accounts of unsuccessful investors. On February 15, the shares will be transferred to the successful applicants’ demat accounts. On February 16, the company’s stock could be listed on the stock exchange.
Experts are advising to stay away
Swastika Investmart Ltd. Giving “AVOID” rating on the IPO, Senior Analyst Aayush Agarwal has advised investors to stay away. He says that the financial performance of the company has been mixed in the last few years. Revenue climbed in FY20, but dropped in FY21, dropping to Rs 625 crore from Rs 9,47.97 crore. The profit fell from 236.6 crores to 132.9 crores throughout this time. The corona virus outbreak has had an impact on the company’s performance. However, the business of the company has become normal in the first 6 months of FY22. Vedant Fashions is said to be India’s leading provider of Indian wedding and celebration wear. For the IPO, the corporation has kept the valuation high, and it appears to be overpriced.
