Manyavar’s festive IPO
India’s quintessential wedding brand is going public. Vedant Fashions, the owner of Manyavar, has filed draft papers for an initial public offering (IPO). this is purely an offer for sale (OFS) where existing investors are seeking partial exits.
this will be the first branded ethnic apparel maker to be listed on the Indian stock exchanges. the company won’t get any funds from this IPO, but the current shareholders will make money.
Covid did affect the numbers, but the company still retains the top position in the men’s wedding wear market in India. apart from Manyavar, Vedant Fashions has other brands like Mohey and Mebaz.
in FY21, the firm’s revenue from operations stood at ₹564.82 crore compared to ₹915.55 crore a year ago. its net profit slipped 43.8% to ₹132.9 crore amidst Covid shutdown across stores.
as of June 30, the firm has a retail footprint of 1.1 million square feet, covering 525 exclusive brand outlets (EBOs). this includes stores across 207 locations in India and 12 EBOs across the US, Canada, and the UAE
in its draft papers, Vedant Fashions said that it will use a cluster-based expansion strategy in the future.
the ethnic apparel market in India was worth ₹1.8 lakh crore in FY20, according to CRISIL Research. but its market size declined by almost 40% in FY21 due to Covid and the allied lockdown.
the report said that men’s fashion is the largest category at 42% in this apparel market. here, Manyavar has been categorised as the top brand with revenues in excess of ₹700 crore.
now that there is an unlock phase across India, CRISIL expects a 48-50% jump in the market. with restrictions easing, destination weddings are also slowly getting back.
Vedant Fashions is the market leader in the men’s ethnic wear market in India. and an IPO will be the icing on the cake.