Vedant Fashion Limited IPO

Vedant Fashion Limited IPO

Incorporated in 2002, Vedant Fashions Limited caters to the Indian wedding and celebration wear market with a diverse portfolio of brands. The company offers a one-stop destination with a wide spectrum of product offerings for every celebratory occasion to its customers.

The company’s brands include (i) Manyavar, (ii) Mohey, (iii) Mebaz, (iv) Manthan, and (v) Twamev. The company operates its business through franchise-owned exclusive brand outlets (EBOs), with the remaining by multi-brand outlets (MBOs), large format stores (LFSs), and online platforms, including its website ( and mobile application.

    • Vedant Fashions was the largest in India in the men’s Indian wedding and celebration wear segment in terms of revenue, OPBDIT, and profit after tax for the Financial Year 2020. According to CRISIL, its ‘Manyavar’ brand is a category leader in the branded Indian wedding and celebration wear market with a pan-India presence, as of Financial Year 2020.
    • As of September 30, 2021, the company had a retail footprint of 1.2 Mn sq. ft covering 535 EBOs (including 55 shop-in-shops) spanning 212 cities and towns in India, and 11 EBOs overseas across the United States, Canada, and the UAE.
    • Company have focused on spreading India’s vibrant culture, traditions and heritage through its aspiration yet value for money brands at a diverse range of price points. It offers a one-stop destination with a wide spectrum of product offerings for every celebratory occasion.
    • The company’s distributors are in 28 states and 8 union territories throughout India, catering to over 1.6 million retail outlets. As of September 30, 2021, the company had 88 depots in India, with an aggregate storage space of approx. 1.8 million square feet across the country.

Outlook & Valuation

The company has mixed set of financials over the few years where the revenue grew in FY20 and fell back from Rs. 9,47.97 cr to Rs 625 cr in FY21. Similarly, profit also declined from Rs. 236.6 cr in the year FY20 to Rs. 132.9 cr in the FY21 which can be attributed due to the pandemic. However, the company’s performance returned to normal in the first 6 months of FY22. Vedant Fashions is among the top companies in the Indian wedding and celebration wear segment. The company’s financials suffered a setback, which could be due to COVID 19. The issue is valued at P/E 161(x) to its FY21 EPS of Rs. 5.36 and P/BV of 24.42(x) on NAV of 35.45 that seems to be overpriced also the issue is purely OFS based. Thus we assign an “AVOID” rating to the IPO.


    • Ravi Modi is the Chairman and Managing Director of the Company.He has been associated with the Company since its inception. He has more than two decades of experience in the garment industry.He oversees the design and marketing functions of the Company
    • Shilpi Modi is the Whole-time Director of our Company.She has been associated with the Company since its inception. She has more than two decades of experience in the garment industry.
    • Rahul Murarka, is the Chief Financial Officer of the Company.. He has over 16 years of experience in finance, accounting, audits, taxation and regulatory compliances.
    • Navin Pareek is the Company Secretary and Compliance Officer of the Company.He has over 10 years of experience in legal, compliance, finance, direct taxation and secretarial functions.
    • Amar Sethia, is the Chief Product Officer of the Company.He is engaged in product designing and in developing the product vision, strategy, analytics and metrics.
    • Vedant Modi is the Chief Marketing Officer of the Company. He joined our Company on June 24, 2021. He holds a bachelor’s degree in science from University College London where his main field of study was information management for business.
    • Kanchan Banerjee, is the Chief Human Resources Officer of the Company.She has over 10 years’ experience in the human resources industry.


    • Market leader in the Indian wedding and celebration wear market.
    • Large and growing Indian wedding and celebration wear market.
    • Omni-channel network of seamlessly integrated business.
    • Technology-based strong supply chain and inventory systems
    • Differentiated business model combining the strengths of retailing with branded consumer play
    • The experienced and professional leadership team


    • Expansion of footprint within and outside India.
    • Scaling up its emerging brands through increased up-selling and cross-selling initiatives
    • Enhancement of brand appeal through targeted marketing initiatives.


    • IPO proceeds is purely an offer for sale and company will not get benefit from such proceeds
    • Dependency on third parties for some production and activities.
    • Highly dependent on the on organization of weddings, festivals and other such occasions and may be affected by seasonal variations.
    • Exposure to supply chain and regional risk due to geographical location of its factory and warehouse.
    • Growth and profitability depend on the level of consumer confidence and spending in India and the overseas.


There are no listed companies in India that engage in a business similar to that of the Company’s business. Accordingly, it is not possible to provide an industry comparison in relation to the Company.


Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019
Equity Share Capital 247.87 250.46 250.46
Other Equity 10,666.23 10,409.68 8,577.24
Net Worth 10,914.10 10,660.14 8,827.70
Borrowings 0.02
Revenue from Operations 5,648.16 9,155.49 8,007.42
EBITDA 2,817.05 3,987.65 3,379.54
Profit Before Tax 1,819.17 3,118.41 2,709.38
Net Profit for the year 1,329.03 2,366.37 1,764.27


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The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (‚RHP‛) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company.

All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE – 48, Jaora Compound, M.Y.H. Road, Indore – 452 001 | Phone 0731 – 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

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