Vedant Fashions
Mainboard₹3,149 Cr issue
+8.08%
Listing gain over issue price
Issue size
₹3,149 Cr
1 lot at cut-off
₹14,722
Lot size
17shares
Open
04 Feb 2022
Close
08 Feb 2022
Allotment
11 Feb 2022
Listing
16 Feb 2022
Listing performance
Issue price
₹866
Listed at
₹936
Listing-day close
₹934.85
Latest price
₹481.45
Close on 23 Oct 2026
Listing gain
+8.08%
Return since issue
-44.41%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 04 Feb 2022 – 08 Feb 2022
- Listing date
- 16 Feb 2022
- Face value
- ₹1 per share
- Issue price
- ₹866 per share
- Lot size
- 17 shares
- Total issue size
- ₹3,149 Cr
- Market cap at offer price
- ₹21,017 Cr
- Promoter holding
- 92.40% → 84.91% pre-issue → post-issue
- ISIN
- INE825V01034
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- Paridhan Garment Park, 19, SDF-1, 4th Floor, A501-502, West Bengal
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 1,09,09,450 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 17 shares per lot, in multiples, at ₹866
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 17 | ₹14,722 |
| Retail (max) | 13 | 221 | ₹1,91,386 |
| S-HNI (min) | 14 | 238 | ₹2,06,108 |
| S-HNI (max) | 67 | 1,139 | ₹9,86,374 |
| B-HNI (min) | 68 | 1,156 | ₹10,01,096 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
1,09,09,450
Anchor portion
₹945 Cr
at ₹866 per share
Valuation and performance
Valuation at offer price
₹866 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 5.36 | — |
| P/E (×) | 161.57 | — |
| Market cap | — | ₹21,017 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 12.19%
- PAT margin
- 23.50%
- EBITDA margin
- 49.88%
- NAV per share
- ₹44.03
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Vedant Fashions
Vedant Fashions Limited, originally incorporated as Vedant Fashions Private Limited in May 2002 and converted to a public company in August 2021, operates in the Indian ethnic and celebration wear apparel market. The company was built on the business of M/s Vedant Creation, a proprietorship transferred in June 2002. The company designs ethnic and celebration wear attires and accessories and sells them through a multi-channel network comprising franchisee-owned exclusive brand outlets (EBOs), multi-brand outlets (MBOs), large format stores (LFSs), and online channels. As of September 30, 2021, the company operates 546 EBOs globally (including 58 shop-in-shops and 11 international stores) across 212 cities in India and 8 cities internationally, spanning approximately 1.2 million square feet of retail space. The company generates revenue through sales to franchisees, MBOs, LFSs, and online retailers.
Company Analysis
from RHPVedant Fashions Limited is India's largest company in men's Indian wedding and celebration wear, operating multiple brands (Manyavar, Twamev, Manthan, Mohey, Mebaz) through an omni-channel network spanning apparel retail.
Vedant Fashions Limited, originally incorporated as Vedant Fashions Private Limited in May 2002 and converted to a public company in August 2021, operates in the Indian ethnic and celebration wear apparel market. The company was built on the business of M/s Vedant Creation, a proprietorship transferred in June 2002. The company designs ethnic and celebration wear attires and accessories and sells them through a multi-channel network comprising franchisee-owned exclusive brand outlets (EBOs), multi-brand outlets (MBOs), large format stores (LFSs), and online channels. As of September 30, 2021, the company operates 546 EBOs globally (including 58 shop-in-shops and 11 international stores) across 212 cities in India and 8 cities internationally, spanning approximately 1.2 million square feet of retail space. The company generates revenue through sales to franchisees, MBOs, LFSs, and online retailers.
apparel retailethnic wearwedding and celebration wearfashion
Objects of the Issue
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges p.17
- Carry out the Offer for Sale of Equity Shares by the Selling Shareholders ₹31,491.95 million p.17
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges and carry out the Offer for Sale of up to 36,364,838 Equity Shares by the Selling Shareholders p.95
- The document states this is an offer for sale and the company will not receive any proceeds from the Offer p.99
Issue Structure
- Total Issue
- ₹31,491.95 million
- Fresh Issue
- 0 (Offer for Sale only)
- Offer for Sale
- 36,364,838 Equity Shares aggregating to ₹31,491.95 million (comprising 17,459,392 Equity Shares aggregating to ₹15,119.84 million by Rhine Holdings Limited, 723,014 Equity Shares aggregating to ₹626.13 million by Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF 1, and 18,182,432 Equity Shares aggregating to ₹15,745.99 million by Ravi Modi Family Trust acting through its trustee Modi Fiduciary Services Private Limited)
- Price Band
- ₹824 per Equity Share (Floor Price) to ₹866 per Equity Share (Cap Price)
- Lot Size
- 17 Equity Shares and in multiples of 17 Equity Shares thereafter
- Face Value
- ₹1 per Equity Share
Business Model
The company earns revenue primarily through the sale of designed ethnic and celebration wear attires and accessories to franchisee-owned exclusive brand outlets (EBOs), multi-brand outlets (MBOs), large format stores (LFSs), and online retailers. In Financial Years 2019, 2020 and 2021 and the six months ended September 30, 2021, 92.20%, 91.14%, 90.14% and 88.09% of Sales of Customers, respectively, was generated by franchisee-owned EBOs. The company outsources a significant portion of production to third-party jobbers while retaining design capabilities in-house.
Business Segments
Men's ethnic and celebration wear brand; category leader in branded Indian wedding and celebration wear market with pan India presence
Premium men's ethnic wear offerings launched in Financial Year 2020
Value offerings for men in ethnic wear; large scale operations commenced following a refreshed launch
Women's ethnic and celebration wear brand offering lehengas, sarees and stitched suits
Regional heritage brand catering to the entire family
Exclusive brand outlets operated by franchisees selling celebration wear and attires
Men's and boys' flagship brand in mid-premium Indian wedding and celebration wear category with comprehensive product portfolio including kurtas, Indo-westerns, sherwanis, jackets and accessories for kids wear
Women's mid-premium brand launched in 2015 for women's Indian wedding and celebration wear including lehengas, sarees, stitched suits, gowns and kurtis
Established regional heritage brand acquired in FY2018 catering to men's, women's and kids' Indian wedding and celebration wear, with strong presence in South India (Andhra Pradesh and Telangana states), offering kurtas, Indo-westerns, sherwanis, lehengas, sarees and accessories
Premium men's Indian wedding and celebration wear brand launched in 2019, positioned between Manyavar and luxury boutique designer wear, offering kurta sets, sherwanis, Indo-westerns, suits and accessories
Value brand for men's Indian wedding and celebration wear launched in 2018, offering kurtas primarily sold through MBOs, LFS and online channels targeting mid-market weddings
Core men's ethnic wear brand for wedding and celebration wear
Women's celebration wear label launched in 2015
Brand acquired in 2017 from New Meena Bazaar International Private Limited
Premium men's wear brand launched in 2019
Value celebration wear label refreshed launch in 2018
Manufacture, trading and sale of branded apparels for men, women and kids
Men's and boys' flagship brand for Indian wedding and celebration wear, mid-premium positioning
Women's flagship brand for Indian wedding and celebration wear, mid-premium positioning
Men's, women's and kids' brands for the South Indian market (Andhra Pradesh and Telangana), mid-premium to premium positioning
Men's value brand for Indian wedding and celebration wear
Men's premium brand for Indian wedding and celebration wear
SWOT Analysis
Strengths
- • Market leader in men's Indian wedding and celebration wear(p.17)
- • Strong multi-brand portfolio across ethnic wear spectrum(p.31)
- • Extensive omni-channel retail network with pan-India presence(p.17)
- • Advanced technology-driven supply chain and inventory systems(p.38)
- • Established franchisee model with significant partner commitment(p.33)
- • Significant geographic expansion into Tier II and III markets(p.45)
- • Strong brand portfolio with extensive IP protection(p.48)
- • Demonstrated growth recovery post-COVID with strong H1 FY2022 performance(p.45)
- • Market leader in men's Indian wedding and celebration wear with diverse multi-brand portfolio(p.136)
- • Category leader Manyavar brand with pan-India presence(p.136)
- • Asset-light franchisee-owned EBO model with high ROCE(p.137)
- • Strong long-term franchisee relationships with 73% operating 3+ years(p.137)
- • Data-driven technology-enabled supply chain and inventory management(p.138)
- • Omni-channel seamless integration of online and offline channels(p.138)
- • Experienced founder-led management team with brand-building expertise(p.142)
- • High profitability with 43% OPBDIT margin and 26% net margin in FY20(p.131)
- • Leadership position in Indian men's wedding and celebration wear market(p.156)
- • Pioneer in developing and organizing the Indian ethnic wear retail market(p.156)
- • Significant portfolio of registered intellectual property assets(p.157)
- • Strong and experienced workforce aligned to company objectives(p.156)
- • Multiple award-winning brand recognized for marketing excellence and innovation(p.157)
- • Single reportable segment with focused business model in branded apparel(p.220)
- • Strong brand and goodwill asset base with indefinite life intangible assets(p.226)
- • No impairment charges on goodwill and brand indicating resilient business performance(p.226)
- • Significant non-current investments portfolio demonstrating financial strength(p.229)
- • Largest company in men's Indian wedding wear by revenue and profitability(p.262)
- • Category leader with strong brand recognition and pan-India presence(p.262)
- • Diversified brand portfolio targeting multiple customer segments(p.262)
- • Asset-light business model with high capital efficiency(p.263)
- • Highly efficient franchisee model with proven track record(p.263)
- • Advanced technology-driven supply chain and inventory management(p.264)
- • Extensive retail footprint with significant geographic reach(p.263)
- • Strong financial performance with high EBITDA margins(p.264)
Weaknesses
- • High concentration of business in single product category(p.30)
- • Dependence on key brand (Manyavar) for majority of sales(p.31)
- • Geographic concentration of manufacturing and warehousing(p.35)
- • Reliance on outsourced manufacturing without exclusivity(p.33)
- • Concentration among top five franchisees(p.33)
- • Significant working capital requirements and potential cash flow constraints(p.49)
- • Dependence on independent contractors and related labor compliance risks(p.43)
- • Outstanding legal proceedings against company, directors and promoters(p.45)
- • Promoter concentration and potential conflict of interests(p.51)
- • Contingent liabilities from tax and regulatory disputes(p.51)
- • Pending regulatory non-compliance matters(p.45)
- • Leasehold dependency and store location concentration risks(p.50)
- • Heavy dependence on Manyavar brand for 82.51% of sales(p.146)
- • Significant revenue decline during FY21 due to pandemic impact(p.138)
- • Emerging brands (Twamev, Manthan, Mohey) contribute only 17.49% of sales(p.146)
- • Limited international presence with 11 overseas EBOs across 8 cities(p.149)
- • Heavy reliance on EBOs (88.09% of sales) creates distribution concentration risk(p.141)
- • Dependence on few large franchisees with 65% of EBO sales from those with 2+ stores(p.137)
- • High dependence on lease-based retail infrastructure with substantial long-term lease obligations(p.156)
- • Significant finance costs from lease liabilities affecting profitability(p.198)
- • Concentrated customer base with single customer representing over 10% of revenue(p.251)
- • High lease liability burden relative to equity base(p.236)
- • Pending income tax disputes with significant exposure(p.244)
- • Property title registration issues for manufacturing assets(p.223)
- • High concentration on single product category vulnerable to preference changes(p.267)
- • Significant lease cost burden for franchisee-operated stores(p.266)
- • Heavy dependence on franchisees for revenue generation(p.267)
- • Significant decline in profitability due to COVID-19 impact(p.268)
- • Dependence on timely payments from franchisees and vendors(p.293)
Opportunities
- • Growing ethnic wear market with projected strong growth rates(p.17)
- • Consumer shift toward branded ethnic wear(p.17)
- • Expansion of emerging brands (Twamev, Manthan, Mohey)(p.31)
- • Growth in e-commerce channel(p.39)
- • International expansion potential in diaspora markets(p.42)
- • Expansion into international markets (UK, Australia, Southeast Asia, North America, Middle East)(p.43)
- • Tier II and III city penetration with significant untapped market potential(p.45)
- • Strategic brand acquisition opportunities(p.43)
- • Indian wedding and celebration wear market projected to grow 15-17% CAGR through FY25(p.118)
- • Large addressable market with 9.5-10 million weddings annually(p.123)
- • Branded segment growing faster with only 15-20% penetration currently(p.118)
- • Women's celebration wear market significantly larger at ₹735 bn (FY20) with 17-20% CAGR growth potential(p.140)
- • E-commerce growing significantly with penetration expected to reach 50-55% in organized apparel retail(p.117)
- • Expansion into tier-II and tier-III cities with current presence concentrated in tier-I(p.145)
- • Multi-day wedding trend creating incremental demand for multiple celebration wear outfits(p.123)
- • Young demographic with 32% of population aged 20-39 driving discretionary spending growth(p.110)
- • Government incentives and policy support for textile manufacturing and exports(p.158)
- • Expansion of product portfolio beyond men's wear into women's and children's ethnic wear(p.156)
- • Growth in organized retail and e-commerce channels for ethnic wear(p.202)
- • Expansion through strategic store development and organized retail growth(p.244)
- • Portfolio diversification into new product categories for men, women and kids(p.220)
- • International market expansion with growing overseas sales presence(p.239)
- • Monetization of real estate through joint development arrangements(p.229)
- • Significant expansion potential in underserved markets and geographies(p.267)
- • Growing e-commerce and online sales channel expansion(p.267)
- • Opportunity to leverage Manyavar brand to grow emerging brands(p.268)
- • Growth in premium and value segments through differentiated brands(p.262)
- • Expansion of women's ethnic wear market through Mohey brand(p.268)
Threats
- • COVID-19 pandemic impact on weddings and celebrations(p.29)
- • Seasonal fluctuations affecting revenues(p.39)
- • Intense competition from regional and online retailers(p.39)
- • Changing consumer preferences toward traditional wear(p.30)
- • Dependence on favorable economic conditions(p.41)
- • Supplier and jobber concentration risk(p.34)
- • Infrastructural and logistical challenges limiting expansion in new markets(p.45)
- • Price-sensitive customers in new markets reducing competitiveness(p.45)
- • International expansion risks including regulatory, cultural and currency challenges(p.43)
- • Macroeconomic volatility and Indian economic slowdown risk(p.52)
- • High inflation eroding margins and profitability(p.55)
- • Foreign exchange rate fluctuations impacting international revenue(p.53)
- • Trademark infringement and counterfeit product risks(p.48)
- • Intellectual property protection uncertainties and evolving IP laws(p.48)
- • Insurance coverage gaps for large losses(p.49)
- • Regulatory uncertainty and changing tax laws(p.53)
- • India's sovereign debt downgrade risk and financing cost impacts(p.54)
- • High sensitivity to pandemic-induced lockdowns and wedding restrictions(p.122)
- • Inventory management challenges with risk of unsold stock and changing design trends(p.126)
- • Fragmented vendor market creating quality and delivery challenges(p.126)
- • Increasing competition from organized players expanding into celebration wear(p.120)
- • Economic slowdown and reduced discretionary spending impacting celebration wear demand(p.121)
- • Regional and international festivals creating concentrated seasonal demand patterns(p.125)
- • Technology adoption challenges for smaller competitors affecting market structure(p.126)
- • Shift toward casual and comfort wear reducing formal celebration wear demand(p.111)
- • Intense competition from organized and unorganized market participants(p.156)
- • Vulnerability to changing consumer preferences and fashion trends in ethnic wear(p.158)
- • Susceptibility to external economic shocks as evidenced by COVID-19 impact(p.194)
- • Insurance coverage limitations for large-scale business interruptions and disasters(p.156)
- • Exposure to foreign exchange fluctuations from overseas sales(p.249)
- • Fashion industry cyclicality and seasonal demand variations(p.249)
- • Commodity price volatility for raw materials and traded goods(p.249)
- • Tax authority disputes and regulatory compliance challenges(p.244)
- • Ongoing COVID-19 pandemic disrupting business operations and demand(p.269)
- • Intensifying competition from regional and online retailers(p.267)
- • Seasonal variations affecting business performance(p.295)
- • Economic sensitivity to consumer discretionary spending patterns(p.267)
- • Regulatory compliance risks from Legal Metrology Act violations(p.299)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ravi Modi | Promoter | 0.70% | — |
| Shilpi Modi | Promoter | 1.09% | — |
| Ravi Modi Family Trust (acting through its trustee, Modi Fiduciary Services Private Limited) | Promoter | 74.59% | 67.10% |
| Ravi Modi Family Trust (acting through its trustee, Modi Fiduciary Services Private Limited) | Promoter | 74.59% | 67.10% |
| Ravi Modi | Promoter | 0.70% | 0.70% |
| Shilpi Modi | Promoter | 1.09% | 1.09% |
| Ravi Modi HUF | Promoter Group | 16.02% | 16.02% |
| Ravi Modi Family Trust | Selling Shareholder | — | — |
| Ravi Modi | Individual Promoter | 0.70% (1,688,134 equity shares) | — |
| Shilpi Modi | Individual Promoter | 1.09% (2,656,104 equity shares) | — |
| Ravi Modi Family Trust (acting through its trustee, Modi Fiduciary Services Private Limited) | Promoter Trust | 74.59% (181,024,186 equity shares) | — |
| Ravi Modi Family Trust acting through its trustee, Modi Fiduciary Services Private Limited | Promoter | 74.67% | — |
| Ravi Modi HUF | Promoter | 16.04% | — |
| Rhine Holdings Limited | Promoter | 7.20% | — |
| Ravi Modi | Chairman and Managing Director / Founder / Promoter | — | — |
| Kedaara Capital | Marquee Investor / Promoter Group | — | — |
| Ravi Modi Family Trust (acting through Modi Fiduciary Services Private Limited) | Selling Shareholder | — | — |
| Rhine Holdings Limited | Selling Shareholder | — | — |
| Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF 1 | Selling Shareholder | — | — |
Leadership
Ravi Modi · Chairman and Managing Director
Shilpi Modi · Whole-time Director
Rahul Murarka · Chief Financial Officer
Navin Pareek · Company Secretary and Compliance Officer
Manish Mahendra Choksi · Independent Director
Tarun Puri · Independent Director
Abanti Mitra · Independent Director
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Vedant Fashions IPO FAQs
What is the lot size of Vedant Fashions IPO?
The minimum lot size of Vedant Fashions IPO is 17 shares. One lot costs ₹14,722 at the cut-off price.
When does Vedant Fashions IPO open and close?
Vedant Fashions IPO opened for subscription on 04 Feb 2022 and closed on 08 Feb 2022.
What is the listing date of Vedant Fashions IPO?
Vedant Fashions IPO listed on 16 Feb 2022.