Kedaara Capital to exit as Manyavar files for IPO


Ethnic wear brand Manyavar, owned by Vedant Fashions Ltd, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise funds via an initial public offering (IPO). 

The issue comprises a pure offer for sale (OFS) of up to 36.36 million shares by its existing promoter and shareholders including Kedaara Capital.

Axis Capital, Edelweiss Financial Services, ICICI Securities, IIFL Securities and Kotak Mahindra Capital are the book running lead managers to the issue.

The OFS has up to 17.46 million shares by Rhine Holdings Ltd; up to 723,000 shares by Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF I; and up to 18.18 million shares by Ravi Modi Family Trust.

With this, Kedaara Capital will make complete exit. Currently it holds 0.3% stake in the firm. Rhine Holdings has 7.2% stake while Ravi Modi Family Trust has 74.67% stake in the firm.

The firm is in the men's Indian wedding and celebration wear market. Its Manyavar brand is a category leader in the branded Indian wedding and celebration wear market with a pan India presence. Its other brands include Twamev, Manthan, Mohey, and Mebaz.

As of 30 June 2021, it had a retail footprint of 1.1 million sq. ft covering 525 exclusive brand outlets (EBOs), including 55 shop-in-shop, spanning across 207 cities and towns in India and 12 EBOs overseas across the US, Canada and the UAE. The firm aims to double its national footprint over the next few years.

“We intend to focus our expansion effects in markets where we determine there is an increasing demand for our products, and where we can leverage our existing presence to expand our market share. Through our cluster-based expansion strategy, we have identified several cities and towns in both existing geographies where we have a presence and new geographies where we plan to establish our first EBOs," the firm said in the DRHP.

For FY21, its revenue from operations was at ₹564.82 crore against ₹915.55 crore a year ago. Net profit for the period stood at ₹181.92 crore versus ₹311.84 crore last year.

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