Vedant Fashions IPO Subscription Status Day 2: issue continues to struggle with subscription; booked 16%, retail quota filled 0.27 times

Vedant Fashions Ltd IPO has been witnessing lackluster subscription as the issue was subscribed barely 16% at 11.40 am on the second day. Against 2,54,55,388 shares on offer, bids were received for barely 41,99,068 shares on Monday so far. The issue that will close tomorrow (February 8) saw retail investors quota being subscribed 0.27 times with 34,06,018 bids against 27,27,694 shares on offer.  

Non-Institutional Investors and Qualified Institutional Buyers (QIBs) portions were subscribed 0.07 times and 0.06 times respectively on Monday.  

Vedant Fashions IPO was subscribed 14 % at the end of Day 1 on Friday. Investors can bid for a minimum of 17 equity shares and in multiples thereof. 

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The IPO had received bids for 35,32,872 shares against 2,54,55,388 shares on offer, according to data available with the National Stock Exchange (NSE). 

The Rs 3,149-crore IPO had fixed a price band of Rs 824-866 per share. Investors can bid for a minimum of 17 equity shares and in multiples thereof. 

The public issue is purely an offer for sale of 36,364,838 equity shares by promoter 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. 

Zee Business Managing Editor Anil Singhvi has recommended to apply for long-term. 

He said strong brand leader, asset light model makes it a good long-term candidate. "Besides, it also boasts of strong financial, margin and cash flow," he said.  

Speaking of negatives, the Market Guru said at the upper price band of Rs 866, Vedant Fashions IPO appears little expensive. "Currently, promoters holding in the company stands at 85%, which has to be reduced by at least 10%," he said. 

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. In India, the company's EBO network spans across 212 cities and towns, as of September 2021.