Vedant Fashions makers of Manyavar plan IPO in FY19

Vedant Fashions owner of ethnic wear brand Manyavar, is looking at offering an initial public offering (IPO). The company plans to initiate a formal process for launching it. Media reports suggest, Manyavar IPO is likely to be in the second half of the financial year 2018-19. Manyavar’s plans to go public come at a time when the Indian IPO market has seen its best year ever.

Vedant Fashions reported a profit of Rs111.3 crore on a revenue of Rs610.2 crore in the financial year 2016-17, according to data from the company’s filings with the Registrar of Companies. Vedant Fashions is backed by Kedaara Capital, which last year invested around Rs 400-450 crore in the company for a 10 per cent stake. It has been reported that private equity firms Kedaara Capital and L Catterton were in discussions to pick up a minority stake in the retailer.

Manish Kejriwal and Sunish Sharma, Managing Partners, Kedaara Capital say the firm does not comment on market speculation. Vedant Fashion reported a revenue of Rs 610.24 crore in the financial year 2016-17, a growth of 21 per cent over the revenue of Rs 504.27 crore reported in the previous year. In 2016-17, the company’s profit grew 23.5 per cent to Rs111.3 crore, as against a profit of Rs 90.1 crore in the previous year.

In recent times Vedant has bought other firms to grow its business. It was acquired Hyderabad-based rival Mebaz. TCNS Clothing the owner of women’s apparel brands W, Aurelia and Wishful, has hired investment banks Citibank and Kotak Mahindra Capital to manage its initial share sale they are also looking at the opportunity of tapping the buoyant Indian initial share sale market.