Manyavar IPO

Vedant Fashions Limited is the leading firm in India in the men’s Indian wedding and celebration wear category, in respect of sales, OPBDIT, and profit after tax for the Financial Year 2020. (According to the CRISIL report.) Manyavar IPO will hit the stock market on 04 February 2022.

About Manyavar

With a pan-India reach, the ‘Manyavar’ brand is a segment leader in the branded Indian wedding and celebration apparel industry. By discovering gaps in the under-served and high-growth Indian wedding and festival apparel sector, they’ve built a multi-channel network and launched brands.

They want to share India’s rich culture, customs, and legacy via aspirational yet affordable products across a wide price range.

Via their beautiful franchisee-owned exclusive brand stores, they seek to provide an aristocratic but smooth buying experience to their consumers by providing a one-stop destination with a wide-spectrum of product options for any joyful event.

Growth

They are focused on strengthening their leadership position in the organised Indian wedding and festival wear market and constructing dominance in the premium and worth sections of the men’s Indian wedding and celebration wear market, respectively, via their brands Twamev and Manthan.

In the women’s Indian wedding and celebration wear market through their brand Mohey, which was launched in 2015.

They have a wide portfolio of leading and unique brands, namely Mebaz, a regional legacy brand serving to the complete family with a long tradition and strong footprint in the states of Andhra Pradesh and Telangana, which they acquired in the financial year 2018.

Sales and Brands

Franchise-owned exclusive brand outlets (their “EBOs”) generated 92.20 percent, 91.14 percent, 90.14 percent, and 87.79 percent of their clients’ Sales in Financial Years 2019, 2020, and 2021, respectively.

With the remainder coming from multi-brand outlets (“MBOs”), large format stores (“LFSs”), and online platforms, such as their website (www.manyavar.com).

Manyavar, Mohey, Mebaz, Manthan, and twamev are the company’s major brands, and they are among the best-selling in their respective segments.

Portfolio

Their product line comprises a wide selection of apparel and accessories, all of which were designed by their designers with experience in catering to the varied regional tastes of the Indian client.

Their goods are made by craftsmen with extensive experience in the Indian wedding and celebration wear industry, as well as their own in-depth understanding of the needs of Indian festivals and weddings.

Aside from individual customisation for the bride and groom, their wedding portfolio offers several ranges of designs for various members of the wedding entourage.

They’ve developed long-term connections with suppliers and craftsmen throughout the years.

Manyavar IPO

Vedant Fashions Limited, headquartered in Kolkata has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 36,364,838 equity share on 09 September 2021.

The offer doesn’t includes any fresh equity shares and there is an offer for sale (OFS) of 36,364,838 equity share by the promoters mentioned in the DRHP.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30 June 2021	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	1663.63	1625.65	1591.55	1,318.51
Total Revenue	178.48	625.02	947.98	819.80
Profit After Tax	45.19	132.90	236.64	176.43

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	5.36	5.36	3
Financial Year 2020	9.45	9.45	2
Financial Year 2019	7.04	7.04	1
Weighted Average	7.00	7.00
June 30, 2021	1.82	1.82

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following basic parameters are used to calculate the Offer Price:

• With a broad portfolio of brands serving to the desires of the whole family, it is the industry leader in the Indian celebration wear industry.
• The Indian wedding and celebration clothing industry is large and rising, owing to increased spending on such attire.
• Retailing skills are combined with branded consumer play in this differentiated business strategy.
• Their online and physical channels are seamlessly integrated into an omni-channel network.
• Massive supply chain and inventory replenishment systems built on technology, driven by systemwide data analytics and long-term vendor partnerships.
• A management team led by an experienced and knowledgeable founder.

Vedant Fashions IPO Peer Comparison

There are no publicly traded firms in India with a business portfolio equivalent to theirs firm and a scale of operations similar to theirs. As a result, providing an industry comparison in relation to their corporation is unfeasible.

Manyavar IPO Details

IPO Opening Date	04 February 2022
IPO Closing Date	08 February 2022
Issue Type	Book Building
Face Value	1 per share
IPO Price	INR 824 to 866 per equity share
Market Lot	35
Min Order Amount	INR 14,722
Listing At	BSE, NSE
Issue Size	3,149.19 Cr
Fresh Issue	0 crores
Offer for Sale	36,364,838 equity share

Manyavar IPO Date

Manyavar IPO opening date is 04 February 2022, and the closing date is 08 February 2022. The Manyavar IPO issue may list in 16 February 2022.

IPO Opening Date	04 February 2022
IPO Closing Date	08 February 2022
Basis of Allotment Date	11 February 2022
Initiation of Refunds	14 February 2022
Credit of Shares to Demat Account	15 February 2022
IPO Listing Date	16 February 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly equivalent
Non Institutional Investor	15	Roughly equivalent
Retail	35	Minimum 1 lot, based on availability.

Manyavar IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Manyavar IPO.

Manyavar IPO GMP

Manyavar IPO Grey Market Premium is 11.

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
14 February 2022	11	1300	100
13 February 2022	10	1200	150
12 February 2022	9	1400	200
11 February 2022	7	1000	150
10 February 2022	6	600	100
09 February 2022	8	900	100
08 February 2022	10	700	100
07 February 2022	13	800	100
06 February 2022	25	1000	100
05 February 2022	47	1100	100
04 February 2022	45	1000	100
03 February 2022	42	900	100
02 February 2022	48	1200	150
01 February 2022	52	1700	200
31 January 2022	82	2300	250
30 January 2022	85	3700	400
29 January 2022	99	3300	350
28 January 2022	105	4200	450

Manyavar IPO Review

You can avoid this IPO due to market volatility for short term & Apply with long term view only.

Vedant Fashions IPO Risk

• Any future pandemic or significant public health catastrophe, such as the COVID-19 pandemic, may have a negative impact on their company.
• Their business prospects are dependent on the condition of their major brands, and any inability to maintain or expand product sales might have a negative impact on their operations.
• Their franchisee-owned EBOs account for a large percentage of their customers’ sales.
• Apart from product design, they outsource a large percentage of their manufacturing processes and operations to third parties without any exclusivity agreements.
• Any failure in their quality control methods might harm their reputation and have a negative impact on their business, operating performance, and financial situation.

Other Threats

• Their firm is dependent on the organising of weddings, festivals, and other ethnic events, and seasonal changes can have a negative impact on their operations.
• Their company and cash flows may suffer if they are unable to correctly assess consumer demand and maintain an appropriate amount of inventory in their shops.
• The degree of consumer confidence and spending in India and the international jurisdictions where they operate determines their growth and profitability.
• Their might not be able to expand their business into new geographic areas or foreign markets.
• Their company,  subsidiary, directors, and  promoters are all involved in ongoing legal procedures.

Footprint

They had a retail footprint of 1.1 million square feet, which included 525 EBOs (including 55 shopin-shops) in 207 regions and districts throughout India, as well as 12 EBOs in the United States, Canada, and the United Arab Emirates, all of which had a substantial Indian diaspora.

Their customers may place orders through their website, their mobile application, and top lateral e-commerce platforms in addition to their offline retail presence.

Since their offline and online channels are connected, their consumers may order their items either offline or online, and they have the option of buying things in one shop and returning to another, or ordering online and having them delivered to their home.

Awards

They are managed by Mr. Ravi Modi, their founder, Chairman, and Managing Director, a first-generation entrepreneur who has demonstrated his knack for brand development and retailing via the success of their businesses.

Mr. Modi is backed by a seasoned management board whose accomplishments have been recognised by a number of industry accolades, such as the Global Award for Retail Excellence in 2020, India’s Retail Champions (Speciality Retail) in 2020, and Best Men’s Ethnic Wear Brand (East) in 2019.

Through the Kedaara Capital Alternative Investment Fund – Kedaara Capital AIF 1 and Rhine Holdings Limited, They’ve had the assistance, advice, and experience of marquee investor Kedaara Capital since 2017.

Ads

They use targeted marketing efforts using digital and social media, billboards, multiplex theatres, television advertisements, and live events to establish a stronger connection with their customers.

They think that via successful brand advertising and different marketing campaigns for their businesses, they have established a strong brand identity.

They try to connect with their consumers on an emotional level by sending out subliminal signals that they can identify to.

“Diwali Wali Feeling,” “Shaadi Grand Hogi,” “Pehno Apni Pehchan,” “Apno Wali Shaadi,” and “Shaadi ka Kharcha Adha Adha” are examples of values-based messaging themes rooted around traditional cultural norms.

Manyavar IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Manyavar IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
04 Feb 2022	1	0.06	0.06	0.22	N/A	0.14
07 Feb 2022	2
08 Feb 2022	3

Promoters

• Ravi Modi
• Shilpi Modi
• Ravi Modi Family Trust (acting through its trustee, Modi Fiduciary Services Private Limited).

Promoter’s Holding

Pre Issue Share Holding	76.46%
Post Issue Share Holding