Kolkata-based fashion Ltd, the owner of ethnic wear brands, Manyavar, Mohey and Mebaz, will hit Dalal Street next week with its initial public offering (IPO). The subscription for the public issue will last for four days, starting from February 4 and lasting on February 8. Anchor investment will be able to bid on February 3.
According to the reports, the company has set a price band of INR 824 to 866 per share for the public issue. The company is expecting to fetch Rs. 3,149 crore at the upper end of the price band.
The public issue will be entirely an offer-for-sale (OFS) of 36,364,838 equity shares by existing shareholders and promoters Ravi Modi, Shilpi and Ravi Modi Family Trust. The IPO will not consist of a fresh issue of equity shares.
The RMFT is expected to trim its stake by selling up to 18,182,432 equity shares. With Ravi Modi Family Trust, other stakeholders ─ Rine Holdings and Kedaara AIF ─ are likely to offload 17,549,392 and 7,23,014 equity shares, respectively. Vedant Fashion will not get any proceeds from the issue as it is an OFS.
Vedant Fashions filed the draft red hiring prospectus on January 22, and it will float the IPO on February 18, as per the Securities and Exchange Board of India approval. The company also plans to list its shares on the BSE and National Stock Exchange (NSE) on February 16.
The issues are distributed in different amounts. 35% will be available for retail investors, half is reserved for Qualified Institutional Buyers (QIB), and the rest 15% will be available for non-institutional investors. Investors can bid in lots of 17 equity and in multiples, according to the reports.
Some well-known names like IIFL Securities, Axis Capital, Kotak Mahindra Capital, and Edelweiss Financial Services will be acting as the book running lead manager for the Vedant Fashion issues. KFintech Private Ltd. will be its registrar.