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IPO Price F.V. IPO Date SHARES Issue Size
866 Rs.1 Feb 4, 2022 to Feb 8, 2022 17 3149.19 Cr.
Company's Brands - (i) Manyavar, (ii) Mohey, (iii) Mebaz (iv) Manthan (v) Twamev
Promoters - RAVI MODI, SHILPI MODI, and RAVI MODI FAMILY TRUST
Competitive Strengths
Market leader in the Indian celebration wear market
Large and growing Indian wedding and celebration wear market
Omni-channel network of seamlessly integrated business
Technology-based strong supply chain and inventory systems
The experienced and professional leadership team
As of September 30, 2021, the company had a retail footprint of 1.2 Mn sq. ft covering 535 EBOs (including 55 shop-in-shops)spanning 212 cities and towns in India, and 11 EBOs overseas across the United States, Canada, and the UAE.
EBOs - exclusive brand outlets
According to the ICICI note, the Indian wedding and celebration wear market is pegged around RS 1,020 billion (15-20 per cent)branded penetration) while the branded space is expected to grow at a CAGR of 18-20 per cent by FY25.
The IPO is purely OFS (Offer For Sale) from the promoters hence the company will not receive any proceeds from the offer.Post issue, the promoters shareholding will go down to 84.9 per cent from present 92.4 per cent.
it is valued at 22.5x, 36.3x EV/sales for FY20, FY21, respectively, and 89x, 158x P/E for FY20, FY21, respectively.
Positives:
Plans to expand footprints within and outside India
Scaling up emerging brand through increased up-selling, cross-selling initiatives
Disciplined approach towards acquisitions
Risk:
High dependence on wedding and celebration wear
Inability to maintain and scale up brands
Dependence on third party for manufacturing the products
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