India's Vedant Fashions valued at $3.2 bln as shares jump in debut

Vedant Fashions

16/02/2022 07:08

** Shares of Indian ethnic clothing retailer  VEDN.NS  rise
as much as 12.6% to 975 rupees in market debut, valuing co at
236.63 bln rupees ($3.15 bln)
    ** VEDN, known for its wedding wear brand 'Manyavar', opens
at 935 rupees vs the offer price of 866 rupees 
    ** IPO consisted of an offer for sale of shares worth up to
31.49 bln rupees and was subscribed 2.57 times earlier this
month  
    ** Co's consolidated profit fell 44% YoY to 1.33 bln rupees
($17.71 mln) for the year ended March 31, 2021, while
consolidated revenue from operations dropped to 5.65 bln rupees
from 9.16 bln rupees
    ** "Vedant Fashions' business is highly concentrated on
wedding & festivals wear and thereby vulnerable to variations in
demand" - Satish Kumar, research analyst at Choice Broking
    ** "Issue is aggressively priced, leaving no margin of
safety for investors. As the share is listed at modest premium
of ~8%, we recommended investors to book profit" - Kumar 

($1 = 75.0830 Indian rupees)

 (Reporting by Rama Venkat in Bengaluru)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;))