Ethnic wear brand 'Manyavar' owner Vedant Fashions files IPO papers with Sebi

Vedant Fashions Ltd, which owns ethnic wear brand Manyavar, has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial share-sale.

The initial public offer (IPO) is purely an offer for sale of 36,364,838 equity shares by promoter and existing shareholders, according to the draft red herring prospectus (DRHP).

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.

The promoters of the company are Ravi Modi, Shilpi Modi and Ravi Modi Family Trust.

Since the IPO is entirely an offer for sale, the company will not receive any proceeds from the public issue.

Vedant Fashions' 'Manyavar' brand is a category leader in the branded Indian wedding and celebration wear market with presence across the country. The company's other brands include Twamev, Manthan, Mohey, and Mebaz.

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As of June 30, 2021, the company has an extensive retail network with 537 exclusive brand outlets (EBOs) including 55 shop-in-shops globally, including 12 overseas EBOs across the US, 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 said in the draft papers.

Axis Capital, Edelweiss Financial Services, ICICI Securities, IIFL Securities and Kotak Mahindra Capital are the book running lead managers to the issue.