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Manyavar IPO

  • Writer: Yash Mehta
    Yash Mehta
  • Feb 3, 2022
  • 2 min read

Updated: Mar 28, 2022



IPO Details:

Price Band: 824-866

Cutoff Price: 866


About Company:


Manyavar is the largest company in India in the men’s Indian wedding and celebration wear segment in terms of revenue, OPBDIT and profit after tax. ‘Manyavar’ brand is a category leader in the branded. Indian wedding and celebration wear market with a pan India presence. Through multi-channel network, company forecast and launch on-trend designs of a diverse range of attires and accessories for every celebratory occasion, and cater to the needs of their customers through a portfolio of leading and differentiated brands.


Competitive Strengths:

  1. Market leader in the Indian celebration wear market with a diverse portfolio of brands catering to the aspirations of the entire family.

  2. Large and growing Indian wedding and celebration wear market driven by an increased spending on such wear.

  3. Differentiated business model combining the strengths of retailing with branded consumer play.

  4. Omni-channel network with the seamless integration of our offline and online channels.

  5. Technology-based strong supply chain and inventory replenishment systems driven by system-wide data analytics, strong processes, and longstanding vendor relationships.

  6. Experienced and professional founder-led leadership team.

Strategies:

  1. Expansion of footprint within and outside India.

  2. Scaling up emerging brands through increased up-selling and cross-selling initiatives.

  3. Enhancement of brand appeal through targeted marketing initiatives.

  4. Significant potential and space for growth of emerging brands.

  5. Disciplined approach towards acquisitions.


Financial Performance:



Revenue of the company is declining may be because of pandemic. Company is profitable and cutoff price is at P/E of 160 which is very high.


Objects of the Issue:


The Net Proceeds from the Issue are proposed to be utilised in the following manner:

  1. Offer for Sale


Competitors Comparison:


Considering listed companies that are in same business, Manyavar seems to be highly overvalued based on the P/E ratio and P/B ratio.


Grey Market Premium:


Our view: GMP of the IPO is not good but overall the company looks overvalued. I will not subscribe to this IPO.


Disclaimer: Views are shared for an educational purpose. Please consult your financial advisor or planner before taking any action based on the views or facts shared on this blog.

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