Shares of Vedant Fashions fell below its issue price of Rs 866 as it opened at Rs 850 on Tuesday morning. The shares has listed on 16th February as they have constantly fallen ever since.
Vedant Fashions is an ethnic wear brand based in Kolkata. Its main brands are Manyavar, Twamev, Mohey and Mebaz. Manyavar is a market leader in Indian ethnic wear. The company’s IPO received good response as it was subscribed almost 2.6 times. The company’s investors managed to raise Rs 3,150 crores from the IPO as it was purely an Offer-for-Sale. The institutional investors’ portion was subscribed 7.5 times and the HNI portion was subscribed 1.07 times. However, the RII portion remained undersubscribed at 40%.
The share listed at a price of Rs 935 per share on 16th February, 2021, resulting in an 8% listing gain. The share touched a high of Rs 993 per share that day but was brought down to Rs 936 the same day. Ever since then the share has been hitting lows as it fell below the Rs 900 mark when it opened at Rs 880 on 21st February, 2021. The share fell below its issue price on 22nd February as it opened at Rs 850. The share has fallen nearly 16% from its high, down 1.4% on 22nd February itself, as it trades near Rs 867 per share.
It is said that the valuations demanded by the firm was too expensive to maintain.
Highlight by Aman Agarwal.