Vedant Fashions IPO Subscription Status Day 3: Fully Subscribed on final day; QIBs portion booked nearly 3 times

After seeing muted response for two days, Vedant Fashions Ltd IPO was oversubscribed (1.01%) on the last day as the issue saw bidding for 2,57,99,608 shares against reserved 2,54,55,388 shares around 1.10 pm on Tuesday.  

Retail investors subscribed the issue 0.34 times with bidding for 43,86,085 shares in a comparison to 1,27,27,694 shares set aside for this category.  

Non-Institutional Investors booked the issue 0.11 times, while Qualified Institutional Buyers (QIBs) led the subscription on final day with 2.86 times bidding against quota of 72,72,968 shares. 

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The initial public offering of Vedant Fashions was subscribed merely 21 percent on the second day of bidding on February 7. 

Vedant Fashions IPO was subscribed 14 % at the end of Day 1 on Friday. 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.  

"Apply for long-term. It is a strong brand leader and has an asset light model, which makes it a good long-term candidate. Besides, it also boasts of strong financial, margin and cash flow," Zee Business Managing Editor Anil Singhvi had 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.