Vedant Fashions Raises Rs. 945 Crore from Anchor Investors

Vedant Fashions Ltd, which owns ethnic wear brand Manyavar, on Thursday said it has garnered Rs 945 crore from anchor investors, ahead of its IPO roll-out on Friday. The company has decided to allot 1,09,09,450 equity shares to anchor investors at Rs 866 apiece, which is also the upper band of the public issue, aggregating the transaction size to Rs 944.75 crore, Government of Singapore, Monetary Authority of Singapore, Fidelity, Nomura, Abu Dhabi Investment Authority, Morgan Stanley Asia (Singapore) Pte, BNP Paribas Arbitrage and Societe Generale are among the anchor investors. And also, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, SBI Mutual Fund (MF), ICICI Prudential MF, Axis MF, Kotak MF, Aditya Birla Sun Life MF, Sundaram MF and UTI MF were also allocated shares.

The initial public offering (IPO) is purely an offer for sale of 36,364,838 equity shares by promoters and existing shareholders. 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. Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. 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 September 2021, the company has an extensive retail network with 546 exclusive brand outlets (EBOs) including 58 shop-in-shops globally, including 11 overseas EBOs across the United States, Canada and the UAE, which are countries with a large Indian diaspora.