Vedant Fashion Limited (Manyavar)
Vedant Fashions owns and operates Indian ethnic and celebration wear brands. Manyavar, the company’s flagship 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 Mabez, serving across men’s and women’s categories and value, mid-premium, and premium price segments.
As of September 30, 2021, the company had 535 EBOs (exclusive brand outlets) spanning 212 cities and towns in India, and 11 EBOs overseas across the United States, Canada, and the UAE.
The entire public offer of Vedant Fashions is an offer for sale of 3.63 crore equity shares from existing shareholders.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals on a consolidated basis, VFL has posted turnover/net profits of Rs. 819.80 cr. / Rs. 176.43 cr. (FY19), Rs. 947.98 cr. / Rs. 236.64 cr. (FY20) and Rs. 625.02 cr. / Rs. 132.90 cr. (FY21). For the first half of FY22 ended on September 30, 2021, it has earned a net profit of Rs. 98.41 cr. on a turnover of Rs. 387.29 cr.
VFL has been posting average gross margins of above 60% and net margins above 22% for the reported periods of financial performance. Management is confident of maintaining the trends going forward.
For the last three fiscals, VFL has posted an average EPS of Rs. 7 and an average RoNW of 16.83%. The issue is priced at a P/BV of 24.43 based on its current and post IPO NAV of Rs. 35.45 per share.
If we annualize FY22 earnings and apply it to post IPO paid-up equity capital, then the asking price is at a P/E of around 106.78, thus it is priced aggressively.
| Finalization of Allotment | 11th February 2022 |
| Initiation of Refunds | 14th February 2022 |
| The credit of Shares In Demat | 15th February 2022 |
| Date of Listing | 16th February 2022 |
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