Shares of Vedant Fashions, which runs clothing brand Manyavar, made a healthy debut on the exchanges on Wednesday. The company's shares opened at Rs 935 per share on the NSE, an eight per cent premium over its issue price of Rs 866.
The company deals in men's ethnic and celebration wear items such as Indo-western, sherwanis, kurtas, among others. It has more than 600 stores in over 200 cities and in 3 countries with 11 international stores in the UAE and the US.
The initial public offering of the company which was open for bidding in early February was subscribed 2.6 times the shares that were on offer, according to reports.
"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 per cent from current levels will be a good buying opportunity," said Santosh Meena, Head of Research, Swastika Investmart.
Those investors who applied to make count the listing gains should maintain a stop loss of Rs 890, Meena said. At 1.55 p.m., the shares traded at Rs 988.40, up 14.13 per cent on the NSE.
Source : IANS