13th September 2021, Mumbai:
Vedant Fashions (Manyavar), India's biggest ethnic wear firm, has filed draught documents with market regulator SEBI (Security and Exchange Board of India) to acquire money through an initial public offering (IPO) (IPO).
According to the company's DRHP (Detailed Red Herring Prospectus), the offering consists of a pure offer for sale (OFS) of up to 36.36 million shares by the company's current promoters and shareholders. Rhine Holdings Ltd. has up to 17.46 million shares in the OFS; Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF I has up to 723,000 shares in the OFS, and Ravi Modi Family Trust has up to 18.18 million shares in the OFS.
Vedant Fashions, created by Ravi Modi, is funded by Kedaara Capital, an India-focused private equity firm, and its other brands include Mohey, Mebaz, Twamev, and Manthan. Rhine Holdings now owns 7.2 percent of the company, while Kedaara AIF owns 0.3 percent. Ravi Modi Family Trust owns 74.67 percent of the company.
A production capacity of 10 million pieces per year is also a goal for the firm. Vedant Fashions will not get any revenues from the offer, according to the DRHP. The offer's goals are to reap the benefits of listing equity shares on stock exchanges and to complete the selling shareholders' offer to sell up to 36,364,838 equity shares.
The business anticipates that listing the equity shares would increase its visibility and brand image, as well as offer liquidity to shareholders and create a public market for the equity shares in India. “We plan to concentrate our growth efforts on markets where we believe there is a growing demand for our goods and where we can utilize our existing presence to grow our market share,” says the company. We have chosen numerous cities and towns in both existing geographies where we have a presence and new geographies where we aim to build our first EBOs through our cluster-based expansion strategy,” the business said in the DRHP.
Revenues for FY21 were Rs. 564.82 crore, down from Rs. 915.55 crore the previous year. The net profit for the period was Rs. 181.92 crore, down from Rs. 311.84 crore the previous year. In terms of sales, OPBDIT, and profit after tax for FY 2020, Vedant Fashions is the leading firm in India in the men's Indian wedding and celebration wear category, according to CRISIL.
The firm has a retail footprint of 1.1 million square feet, with 525 EBOs (Exclusive Brand Outlets) distributed throughout 207 cities and towns in India, including 55 shop-in-shops, and 12 EBOs in the United States, Canada, and the United Arab Emirates. Over the next three years, it hopes to quadruple its national footprint.