May 18, 2023
By: Bhakti MakwanaThe share price of Vedant Fashions, parent of ethnic brand Manyavar slipped more than 4 percent on Thursday as the promoter announced plans to sell stake in the company.
Credit: Manyavar
Ravi Modi Family Trust, a promoter entity, will offload 1.69 crore shares, which is 7 percent of the company's entire shareholding. The floor price for the OFS will be ₹1,161 per share, which is at a discount of 6.84 percent against the last closing price.
Credit: EY
The promoter entity, launched an offer for sale (OFS) to slash its shareholding by selling 7 percent stake. It may sell an additional 2.88 percent stake if the OFS is oversubscribed.
Credit: Canva
As of March 31, Ravi Modi Family Trust held a 67.07 percent stake in the company.
Credit: EY
Overall, promoters and promoter group holds 84.88 percent stake in the company. As per SEBI guidelines, promoters should not hold more than 75 percent in a listed entity.
Credit: Canva
The offer will be executed during the trading hours on May 18-19, and will be opened for non-retail investors on the first day and retail investors on the second day.
Credit: Canva
Kolkata-based Vedant Fashions, which owns ethnic wear brand Manyavar, had launched its initial public offering (IPO) in February 2022. The IPO made its debut at an 8.08 percent premium over the issue price. Since listing, shares of the company gained 36 percent.
Credit: BCCL