New Delhi: Vedanta Fashions Ltd., which operates fashion brand Manyavar, has been given approval by the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO). The company's IPO will open for subscription on February 4 and will be open till February 8. The company plans to list on the exchanges on February 16. According to the documents submitted for the IPO, the issue of the company will be in the form of an outright offer of sale (OFS). Under this, the promoters and existing shareholders of the company will offer 3,63,64,838 shares.

The company had applied to SEBI in September to bring an IPO. The company has received an observation letter from SEBI for IPO on January 18. It is mandatory for any company to get an observation letter from SEBI to bring an IPO. The promoters of the company are Ravi Modi, Shilpi Modi and Ravi Modi Family Trust. Since this IPO will be purely in the form of an offer for sale, the company will not get the proceeds from the issue. Currently, Rhine Holdings holds a 7.2 percent stake in the company. Kedara AIF holds a 0.3 percent stake, while Ravi Modi Family Trust holds 74.67 percent.

The offer-for-sale includes the sale of 1.74 crore shares by Rhine Holdings Limited. Along with this, shares up to 7.23 lakh by Kedara Capital Alternative Investment Fund-Kedara Capital AIF I and up to 1.81 crore shares by Ravi Modi Family Trust will be sold under OFS.

Rupee depreciates by 19 paise to 74.62 against the US dollar.

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