The IPO date for Manyavar will be on February 4, 2023. The pricing range for the Manyavar IPO is INR 824–866 per share. Existing shareholders seek to sell 36,364,838 shares via an Offer For Sale, but no new shares will be issued (OFS).
The IPO dates for Vedant Fashions, a Kolkata-based company owned by Manyavar, have been announced. Vedant Fashions is the market leader in India for men’s weddings and celebratory apparel. In the branded Indian wedding and celebration sector, its Manyavar brand is a category leader. Even though sales and margins are decreasing, the company dares to go public with aggressive pricing.
The corporation grew from 800 crores to 915 crores during FY19 and FY20; however, this was hampered in FY21 owing to COVID-19. In addition, the effect is still evident in FY22 revenue. They run an omnichannel network and communicate with consumers using an integrated platform that includes online and physical channels. They established the Manyawar brand specifically for the wedding industry, well-known among customers.
In terms of sales, OPBDIT and profit after tax for the Financial Year 2020 are India’s most prominent firms in the men’s Indian wedding and celebration wear market. They have little assets in terms of plant, property, and equipment, allowing them to earn a high return on capital spent, owing to the nature of their sourcing and manufacturing activities, with a significant portion of revenues produced via franchisee-owned EBOs. The issue with the corporation is the price at which they are selling shares. They’re selling shares at a P/E ratio of 100x. Furthermore, since the whole IPO is an OFS, not a single rupee will go to the firm.
Manyavar IPO Lot Size
The market lot size for the Manyavar IPO is 17 shares. Individual retail investors may apply for up to 13 lots (221 shares or $191,386).
The 3,149 crores initial public offering (IPO) is a complete offer to sell 3.63 crore equity shares by the promoters and current shareholders. In the grey market, the company’s shares are already fetching an 80 percent premium.
1) With a diversified portfolio of brands catering to the ambitions of the whole family, the company is the industry leader in the Indian celebration wear market.
2) The Indian wedding and celebration clothing industry is vast and increasing due to increased expenditure on such attire.
3) It has a unique business strategy that combines retailing skills with branded consumer play.
4) The company has an Omni-channel network that seamlessly integrates its retail and internet channels.
5) Strong supply chain and inventory replenishment systems based on technology, with system-wide data analytics, solid procedures, and long-term vendor partnerships.
6) An experienced and competent founder heads the company’s executive team.
- The company’s income is dwindling. Revenues in FY20 were Rs 947.9 crores, compared to Rs 625 crores in FY21. It earned Rs 387.2 crores in the past six months, which ended on September 21. This drop in income may be due to the covid epidemic.
- From Rs 236.6 crore in FY20 to Rs 132.9 crore in FY21, the company’s margins have shrunk. This drop may be attributed to the covid epidemic once again.
- The whole IPO proceeds will go for the offer for sale, and the firm will not receive any money.
- In general, the IPO price is excessive.
- In the past, a covid pandemic has had an impact on business. Such pandemics are unpredictable and may continue to affect the industry.
- The company’s primary focus is on Indian wedding and celebration outfits. Any shift in client preferences might impact the company’s bottom line.
- The company’s leading brands produce revenue. Failure to maintain such brands may hurt the company.
- Before participating in this IPO, investors should read all of the risk considerations included in the RHP of the IPO document.
In terms of sales, OPBDIT, and profit after tax for the Financial Year 2020, Vedant Fashions is the leading Indian men’s wedding and celebration wear market. Financial Year 2020, the ‘Manyavar’ brand is a category leader in the branded Indian wedding and celebration apparel industry, with a pan-India presence.
The company is concentrating on strengthening its leadership position in the organized Indian wedding and celebration wear market and dominating the value and premium segments of the men’s Indian wedding and celebration wear market. Respectively, through its brands Twamev and Manthan, and in the women’s Indian wedding and celebration wear market through the brand Mohey, debuted in 2015.
Through its diversified portfolio of leading and unique brands, including the purchase of Mebaz, a regional legacy brand catering to the complete family with a long tradition and established presence in the states of Andhra Pradesh and Telangana during the financial year 2018,
With 525 exclusive brands outlets (EBOs) (including 35 shop-in-shops) spread across 207 cities and towns in India and 12 EBOs outside of India in the United States, Canada, and the United Arab Emirates. All of which have significant diaspora communities, the group achieved a 1.1 million square feet retail footprint in June 2022.
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