Vedant Fashions Lists At Over 8% Premium Over Issue Price

New Delhi: Shares of Vedant Fashions, owner of ethnic wear brand Manyavar, made a decent debut at the exchanges as the stock got listed at more than 8 per cent premium over its issue price at the upper band. Vedant Fashions opened 8.08 per cent higher -- at Rs 936 -- on the BSE index against the issue price of Rs 866. It touched a day high of Rs 975.30.

On NSE, it started trading at Rs 935, a premium of 7.97 per cent.

The company's initial public offer (IPO) was subscribed 2.57 times on the last day of subscription on Tuesday.

The category for Qualified Institutional Buyers (QIBs) had received maximum demand with 7.49 times subscription, while non-institutional investors' part was subscribed 1.07 times.

Retail Individual Investors (RIIs) portion had obtained just 39 per cent subscription.

The IPO was purely an offer-for-sale of 3,63,64,838 equity shares by the promoters and existing shareholders.

The offer-for-sale included 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.

The promoters of the company are Ravi Modi, Shilpi Modi and Ravi Modi Family Trust.

Since the IPO was entirely an offer-for-sale, the company will not receive any proceeds from the public issue.

Vedant Fashions had garnered Rs 945 crore from anchor investors. Twamev, Manthan, Mohey, and Mebaz are some of the brands owned by the company.

Axis Capital, Edelweiss Financial Services, ICICI Securities, IIFL Securities and Kotak Mahindra Capital Company were the managers of the offer.