Vedant's fashionable debut

about 5 months ago
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Vedant Fashions, which owns brands like Manyavar and Mohey made a decent, fashionable debut on the bourses today. As against the IPO price of Rs.866, the stock got listed on the BSE at Rs.936 and at Rs.935 on the NSE.

The IPO was subscribed 2.57 times with QIBs portion seeing a 2.57 times subscription, HNIs portion at 1.07 times and retail investors by 39 times.

In our IPO Analysis, we had concluded, “Shares are being offered at a revenue multiple of 18-20x and PE multiple of 75-80x, not on current year, but on one-year forward basis (FY23E), and that too, after factoring in the most-optimistic scenario. These steep valuation multiples leave nothing on the table for incoming investors and instead carry risk of contraction, once profit growth narrows on a larger base. Besides, IPO is 100% OFS, with the PE investor making a complete exit, which is not viewed positive by the market.”

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