Vedant Fashions Limited

“Taiyaar Hoke Aaiye” that’s the tagline for the Manyavar ad in which Amitabh Bachchan is asking the guests to dress up in traditional attire for the wedding celebrations. But now this can also be a call for investors to prepare for the listing of Vedant Fashions, which is known for its Manyavar brand. Manyavar’s journey began in 1999. Ravi Modi, the founder of Vedant Fashions, was working in his family-owned garment store in Kolkata. This is when he realised that in India, the men’s ethnic wear market has no major players. Enthused by this observation, the then-22-year old Ravi started the ethnic wear brand Manyavar with a seed capital of ₹10,000. Since then, the company has grown multifolds through adoption of an omni-channel network. Today, Manyavar is not only one of the popular ethnic wear brands in India but also has 525 exclusive brand outlets across the country. The company also sells its traditional wear through multi-brand outlets, large format stores and online platforms. What’s important to note here is that the company has managed to achieve this strong growth through internal cash and minimal debt. Now, this ethnic wear retailer is all set to launch its IPO and hit the bourse. All about the IPO After its inception as a men’s ethnic wear retailer, Vedant Fashions has diversified its offerings. While Manyavar brand operates in the men’s mid-premium ethnic wear segment, Mohey, which was launched in 2015, is a mid-premium ethnic wear brand for women. The company also owns the Mebaz brand, which caters to men, women and kids in South India. It has also established its dominance in the premium and value segments of the men’s wedding and celebration wear market through brands such as Twamev and Manthan, respectively. Through these brands, the company is able to offer ethnic wear at diverse price points - from value to premium. Apart from having outlets across 207 towns and cities in India, the company also has a presence overseas. It has 12 EBOs across the United States, Canada and the UAE, which are countries with a large Indian diaspora. Financials Revenue: -16%; Net Profit: -13% (FY19-21 CAGR) Despite the pandemic-led restrictions on weddings and events, the company managed to remain profitable in FY21 Strengths A market leader in the Indian celebration wear market. Strong brand recall courtesy marquee celebrity endorsers - such as Amitabh Bachchan, Virat Kohli, Anushka Sharma and Ranveer Singh. Adopted asset-light model with its EBOs predominantly being run by franchisees across India. 70% of its franchisees have operated its stores for three or more years. Over 90% of the sales were generated through its franchisee-owned EBOs in FY21. Entire supply chain and inventory management process is system-driven and algorithmically managed. Risks Dependence on third party manufacturers for the production process. Celebration wear industry in India is highly competitive with several regional brands and unorganised retailers. Pricing pressure from competitors may affect its ability to maintain or increase its product prices. Good to know According to CRISIL, India’s celebration and wedding market is large with 95 lakh to 1 crore marriages taking place each year. India’s men’s ethnic wear market is expected to grow from ₹13,300 crore in FY20 to ₹18,000 crore in FY25. In the same period, the women’s celebration and wedding wear market is estimated to grow from ₹73,500 crore to ₹1 lakh crore. Being a market leader in the ethnic wear space, Vedant Fashions can reap the benefits of the future growth. FAQs How can you pre-apply for Vedant Fashions’ IPO? Pre-applying for Vedant Fashions’ IPO means applying for this public issue before it goes live. Click here and follow these steps to pre-apply for Vedant Fashions’ IPO on Upstox. When does pre-apply for Vedant Fashions’ IPO open and how can you pay for it? You can pre-apply for Vedant Fashions’ IPO from 4 February 2022. Once the IPO goes live, you will receive a UPI mandate. Accept this to block the IPO application amount and successfully place your bid. How can you apply for Vedant Fashions’ IPO? Click here to apply for Vedant Fashions’ IPO on Upstox. You can also download our app. Then click here and follow these steps. When does Vedant Fashions’ IPO open and close for the subscription? Vedant Fashions’ IPO is open for subscription between 4 February 2022 and 8 February 2022. What’s the lot size and minimum investment needed for Vedant Fashions’ IPO? The lot size for Vedant Fashions’ IPO is 17 shares and the minimum investment required is ₹14,772. What is the price band for Vedant Fashions’ IPO? The price band for Vedant Fashions’ IPO is ₹824-₹866 per share. What’s the size of Vedant Fashions’ IPO? The size of Vedant Fashions’ IPO is ₹3,149 crore. How many bids can I place for Vedant Fashions’ IPO? You can place up to three bids for an application. Can these bids be placed at different times during the IPO subscription period? No, the bids have to be placed at one go. If you want to add an additional bid, then you would have to delete your application and re-apply. When will Vedant Fashions shares be credited to your demat account? If the shares are allotted, then they will be credited to your demat account on 15 February 2022. Click here and follow the steps to check the allotment status. Which exchanges will Vedant Fashions’ list on? Shares of Vedant Fashions will list on BSE and NSE. When will Vedant Fashions’ list on the exchanges? Shares of Vedant Fashions will list on 16 February 2022.