Vedant Fashions Ltd, which owns ethnic wear brand Manyavar, has got an approval from the Securities Exchange Board of India (SEBI) to raise funds via an initial public offering. The firm had filed draft papers with the SEBI in September 2021. The issue comprises a pure offer for sale (OFS) of up to 36.36 million shares by its existing promoter and shareholders. The OFS has up to 17.46 million shares by Rhine Holdings Ltd; up to 723,000 shares by Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF I; and up to 18.18 million shares by Ravi Modi Family Trust. Rhine Holdings has a 7.2% stake in the company, Kedaara AIF holds 0.3% stake while the Ravi Modi Family Trust has 74.67% stake. Axis Capital, Edelweiss Financial Services, ICICI Securities, IIFL Securities and Kotak Mahindra Capital are the book running lead managers to the issue.
Vedant Fashions’ “Manyavar” 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 Mebaz. As of June 30, 2021, the company has a retail network with 537 exclusive brand outlets (EBOs), including 55 shop-in-shops globally. It has 12 overseas EBOs across the United States, Canada and the UAE, which are countries with a large Indian diaspora. “We seek to grow our retail network and product reach by entering new geographies, including in tier-II and III towns and cities in India, as we believe that these markets offer significant growth opportunities for us,” the company had said in the draft papers.