Manyavar Owner Vedant Fashions IPO Subscribed 21% On Day 2

Vedant Fashions Ltd.'s initial public offering continued to witness muted demand on the second day of subsription.

The IPO by the owner of the ethnic wear brand Manyavar—that was subscribed 14% on first day—is a pure offer for sale of 3.64 crore shares by existing shareholders and promoters, the Kolkata-based wedding and celebration wear brand said in its red herring prospectus. The price band is set at Rs 824-866 apiece.

At the upper end, Vedant Fashions is seeking a market value of Rs 3,149.2 crore. After the sale, share of promoter and promoter group will reduce to 84.9% from 92.4%.

The company will not receive any proceeds from the offer. The selling shareholders will be entitled to it entirely after deducting relevant taxes.

The IPO aims to achieve the benefits of listing the equity shares on the stock exchanges. The company expects the proposed listing to enhance visibility and brand image, and enable shareholders to obtain greater liquidity.