Vedant Fashions shares gain 12% on issue price; What should investors do with this scrip post decent listing

Shares of newly listed Vedant Fashions on Wednesday surged 12 per cent on issue price soon after listing with 8 per cent gain on the BSE. It gained nearly 4 per cent on the listing price of Rs 866 per share to hit day's high of Rs 975.30 on Wednesday.    

At 11.50 am, shares of Vedant Fashions, one of the India's largest caterer of men's Indian wedding and celebration wear segment, were trading at Rs 954.85, up Rs 18.85 or 2.01% on the listing price, on the BSE. Shares gained Rs 88.85 or 10.26%against its issue price of Rs 866 on the BSE.   

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As shares made a decent debut on te stock exchanges (NSE and BSE), analysts are of the view that one should book profit or stay invested for long-term.  

What should Investors do with Vedant Fashions?  

Vedant Fashions debuted the secondary market on a positive note despite poor subscription figures, says Santosh Meena, Head of Research, Swastika Investmart Ltd.  

The company has strong brand value with good fundamentals, however,  valuation is a major concern, underlines the expert. "Investors should approach it from the long-term perspective, where any dip of 15-20% from current levels will be a good buying opportunity, while those who applied for listing gain should maintain a stop loss of Rs 890," suggested Meena. 

Manoj Dalmia, founder and director, Proficient equities Private limited, is of the view that one can wait and watch for a few quarters if one wishes to buy. "Those allotted can book profits wholly or partially depending on the risk appetite," he says.   

We recommend conservative investors to exit on listing day at whatever value they can make it , says Prashanth Tapse, Vice President (Research), Mehta Equities Ltd.   

"Those who wish to buy on the listing day, they should wait and watch for better discounted pricing, while risk takers may consider holding it as high-risk high-return equity with a long-term perspective," he adds.  

Vedant Fashions listing 

Earlier, Shares of Vedant Fashions made a decent stock market debut in line with Zee Business Managing Editor Anil Singhvi's prediction. Shares of Vedant Fashions were listed at Rs 936 per share on the BSE against issue price of Rs 866 amid volatility in the market. This was a premium of Rs 70 or 8.08%. On the NSE, shares of Vedant Fashions were listed at 7.97% premium or higher by Rs 69 to RS 935 per share on Wednesday. 

"Expected to list in the range of Rs 900-950 range. Long-term Investors can hold. Short-term Investors can keep stop-loss of issue price Rs 866," Anil Singhvi had said in his listing preview.  

Vedant Fashions does? 

Vedant Fashions caters to the Indian celebrations wear market with diverse portfolio of brands. The company has brands like Manyavar, Mohey, Manthan, Tvamev. The company operates through Exclusive Business Outlets, with the rest being multi-brand outlets, large format stores.