Vedant Fashions, the Kolkata-based leading ethnicwear company and owner of popular brands Manyavar and Mohey, is planning to launch an initial public offering (IPO).
The company expects to raise around Rs. 2,500 crore through this IPO.
As per a report of Moneycontrol, the company has held advanced discussions with domestic investment banks for the proposed listing.
There’s been no confirmation on the same from the company so far.
23-year-old Vedant Fashions is backed by Kedaara Capital and has more than 600 stores in over 200 cities and 3 countries with 11 international stores in UAE and the US.
The report says that in recent weeks, Vedant Fashions Private Ltd. has been in talks with multiple investment banks to get them on board as advisors, primarily ICICI Securities, Kotak Mahindra Capital, Edelweiss Financial Services, IIFL Capital and Axis Capital.
It further adds that it’s a high-quality, cash-rich and profitable firm. The IPO will chiefly consist of an OFS (offer for sale) component to facilitate a partial exit for the key investor Kedaara Capital.
In next four years, the ethnic retail giant plans to have 15,00,000 square feet of Manyavar retail space, 5,00,000 sq. ft. of Mohey retail space and 1,000 exclusive stores including 250 flagship & 50 global stores at 300 cities across India and abroad.
It is also aiming for a production capacity of 10 million pieces per annum.
The revenues of Vedant Fashions grew from Rs. 760.58 crore in 2018 to Rs. 794.91 crore in 2019 and during the same time, its profits increased from Rs. 148.27 crore to Rs. 182.27 crore.
