Vedant Fashions has filed preliminary papers with market regulator Securities & Exchange Board of India (Sebi) to raise funds through an initial public offering (IPO).
The IPO is purely an offer for sale of 36,364,838 equity shares by the promoter and existing shareholders, as per the draft red herring prospectus (DRHP). The company will not receive any proceeds from the public issue.
The OFS comprises 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.
Ravi Modi, Shilpi Modi and Ravi Modi Family Trust are the promoters of the company. At present, Ravi Modi Family Trust holds a 74.67 percent stake in the company, while Rhine Holdings has a 7.2 percent stake and Kedaara AIF holds a 0.3 percent stake.
Vedant Fashion owns ethnic wear brand Manyavar and other brands such as Twamev, Manthan, Mohey and Mebaz.
As of June 30, 2021, the company has an extensive retail network with 537 exclusive brand outlets (EBOs) including 55 shop-in-shops globally, including 12 overseas EBOs across the US, Canada and the UAE, which are countries with a large Indian diaspora.
For FY21, the company’s revenue from operations stood at Rs 564.82 crore against Rs 915.55 crore a year ago. Net profit for FY21 declined to Rs 132.9 crore from Rs 236.63 crore in FY20.
According to DRHP, the objects of the offer are to (i) achieve the benefits of listing the equity shares on the stock exchanges, and (ii) carry out the offer for sale of up to 36,364,838 equity shares by the selling shareholders. Further, the firm expects that listing of the equity shares will enhance its visibility and brand image and provide liquidity to shareholders, and will also provide a public market for the equity shares in India.
Axis Capital, Edelweiss Financial Services, ICICI Securities, IIFL Securities and Kotak Mahindra Capital are the book running lead managers to the issue.