scorecardManyavar makes an unexpectedly good listing despite a weak market momentum
  1. Home
  2. stock market
  3. news
  4. Manyavar makes an unexpectedly good listing despite a weak market momentum

Manyavar makes an unexpectedly good listing despite a weak market momentum

Manyavar makes an unexpectedly good listing despite a weak market momentum
Stock Market2 min read
  • Shares of Vedant Fashions a.k.a Manyavar listed at ₹936 while the shares were allotted at ₹866 per share.
  • The IPO had received a tepid response from investors as its IPO was subscribed just 2.57 times on the last day of the bidding.
  • The market capitalisation of the company stood at ₹22,716 crore.
Shares of Kolkata-based Vedant Fashions, which owns ethnic wear brand Manyavar, debuted with decent gains on the National Stock Exchange (NSE) and BSE at 8.08% premium over the issue price of ₹866 apiece despite a weak market momentum.

Profit of ₹70 per share is much more than the early grey market premium of ₹40 the company had commanded.

Post-listing, the market capitalisation of the company stood at ₹22,716 crore, according to BSE data.

The shares of Manyavar IPO were trading at ₹951.75, higher by 9.89% at 10.28 a.m., on February 16.

The ethnic wear company sells its products through five brands -- Manyavar, Mohey, Mebaz, Manthan and Twamev. The company’s flagship brand ‘Manyavar’ is one of the famous brands known for wedding collections.

The IPO was open between February 4 and February 8.⁠and was oversubscribed by just 2.57 times by investors.

“Vedant Fashion is debuting the secondary market on a positive note despite poor subscription figures. The company has strong brand value with good fundamentals however valuation is a major concern, therefore, investors should approach it from the long-term perspective where any dip of 15-20% from current levels will be a good buying opportunity. Those who applied for listing gain should maintain a stop loss of ₹890,” said Santosh Meena, head of research, at Swastika Investmart.

However, most analysts were not very bullish on the IPO as they were not very confident about the company maintaining its profit levels in the coming years because of high margin and inflation pressure.

Analysts believe it is difficult to “maintain (margins) given the competition from the local retailers, online retailers and non-branded products and building inflationary pressure. Furthermore, business is highly concentrated on wedding and festival wear and thereby vulnerable to variations in demand,” said a report Choice Broking firm.

SEE ALSO: Tech Mahindra, Vedant Fashions, IDBI Bank and other hot stocks on February 16
Renowned music composer Bappi Lahiri passes away at 69

READ MORE ARTICLES ON




Advertisement