Vedant Fashions lists 8% premium on debut over issue price of Rs 866

Vedant Fashions lists 8% premium on debut over issue price of Rs 866

AgenciesUpdated: Wednesday, February 16, 2022, 02:59 PM IST
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The initial public offering of the company which was open for bidding in early February has subscribed 2.6 times the shares that were on offer. / Representative image |

Shares of Vedant Fashions, which runs clothing brand Manyavar, made a healthy debut on the exchanges on Wednesday. The company's shares opened at Rs 935 per share on the NSE, an eight per cent premium over its issue price of Rs 866.

The company deals in men's ethnic and celebration wear items such as Indo-western, sherwanis, kurtas, among others. It has more than 600 stores in over 200 cities and in 3 countries with 11 international stores in the UAE and the US.

The initial public offering of the company which was open for bidding in early February was subscribed 2.6 times the shares that were on offer, according to reports.

"Vedant Fashion is debuting the secondary market on a positive note despite poor subscription figures. The company has strong brand value with good fundamentals however valuation is a major concern, therefore, investors should approach it from the long-term perspective where any dip of 15-20 per cent from current levels will be a good buying opportunity," said Santosh Meena, Head of Research, Swastika Investmart.

Those investors who applied to make count the listing gains should maintain a stop loss of Rs 890, Meena said. At 1.55 p.m., the shares traded at Rs 988.40, up 14.13 per cent on the NSE.

Akhil Rathi - Vice President Advisory at Marwadii Shares and Finance Ltd, said "The company has a strong brand positioning with its Manyavar brand. It has a multi-brand product portfolio offering for men, women, and kids catering to all occasions across different price points. The company will face competition from various unorganized players. Considering the TTM (Sept 21) EPS of Rs.10.08 on a post-issue basis, the company is trading at a P/E of 94.41. The company is aggressively priced and the valuations are not in favour of investors. Investors who got allotment can book profit and wait for the correction to add the stock."

(With inputs from IANS)

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