Vedant Fashions IPO - Subscription Day 1

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 03rd February, Vedant Fashions IPO did an anchor placement of 1,09,09,450 shares at the upper end of the price band of Rs.866 to a total of 75 anchor investors. Vedant raised Rs.944.76 crore via anchor issue representing 30% of the total issue size. Out of the 75 anchor investors, 44 were domestic mutual fund schemes while the others were FPIs and institutional investors.

Check - Vedant Fashions IPO - Anchor Investments

The anchor list of QIB anchors included a number of marquee international names like Government of Singapore, MAS, Fidelity, Nomura, Volrado Fund, Morgan Stanley, Abu Dhabi Investment Authority, Wellington, Ashoka Fund, Pioneer Fund, Carmignac etc. It also included big domestic names like SBI MF, ICICI Pru, Axis MF, HDFC Life etc.

The QIB portion (net of anchor allocation as explained above) has a quota of 72.73 lakh shares of which it has got bids for 4.31 lakh shares at the close of Day-1, implying 0.06 times subscription for QIBs at the close of Day-1. However, QIB bids typically get bunched on the last day but the solid response in the anchor placement shows that there is institutional appetite for the IPO.

HNI / NII Portion

The HNI portion got subscribed 0.06 times (getting applications for 3.31 lakh shares against the quota of 54.55 lakh shares). This is a very tepid response at the close of Day-1 with most of the response coming only from individual HNIs. However, this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO only.

Retail Individuals

The retail portion was relatively better at 0.22 times at the close of Day-1, but still too tepid by normal retail standards. This is contrary to the general trend with IPOs in the recent past, although the high price may have been a deterrent for retail. It must be noted that retail allocation is 35% in this IPO. Retail portion was subscribed 0.22 times.

For retail investors; out of the 127.28 lakh shares on offer, valid bids were received for 27.70 lakh shares, which included bids for 20.81 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.824-Rs.866) and will close for subscription on 08th February 2022.

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