Vedant Asset IPO: Review, Analysis and Details

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Vedant Asset IPO
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Vedant Asset IPO Limited a leading financial services network that handles more than 100 Crore of AUM and over 500 Clients is all set to make a debut on the stock market with an issue size of 3 Cr. Here are few points to remember before you apply. 

Vedant Asset LTD IPO – Overview  

The Vedant Asset IPO Subscription starts on September 30, 2022, and ends on October 4, 2022. Vedant Asset IPO plans to raise Rs3.00 Cr and the fixed price range for Vedant Asset’s IPO is Rs40 per share. Vedant Asset reserved shares worth 50% for NII and 50% for the retail sector. 

Particulars
Vedant Asset IPO Opening Date SEP 30 2022  
Vedant Asset IPO Closing Date Oct 4, 2022 
Basis of Allotment Oct 10, 2022 
Initiation of Refunds Oct 11, 2022 
Vedant Assets LTD IPO Face Value ₹10 per share 
Vedant Assets LTD IPO Price ₹40 per share 
Vedant Assets LTD IPO Lot Size  3000 Shares 
Issue Size 3 Cr 
Fresh Size 750,000 shares aggregating to 3 Cr 
Offer for sale NA 
Documents  RHP
Issue Type Fixed Price Issue IPO 
Listing At BSE, SME 
QIB Shares Offered  
NII (HNI) Shares Offered 50% of the net offer 
Retail Shares Offered 50% of the net offer 
Company Promoters Mr. Lalit Tripathi and Mrs. Priyanka Maheshwari are the company promoters. 

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Vedant Asset IPO–Industry Overview 

After a shaky recovery in 2021, things started to become worse in 2022 as threats started to materialize. Due to downturns in China and Russia, global output decreased in the second quarter of this year, while US consumer spending fell short of expectations. An already fragile global economy has been hit by a number of shocks, including higher-than-anticipated global inflation, especially in the United States and major European economies, tighter financial conditions, a worse-than-anticipated slowdown in China due to COVID19 outbreaks and lockdowns, and more detrimental effects from the conflict in Ukraine. 

In May 2014, the industry’s AUM reached the landmark of ten trillion rupees (ten lakh crore), and in just three years, it had expanded more than twofold and first crossed twenty trillion rupees (twenty lakh crore) in August 2017. In November 2020, the AUM size surpassed 30 trillion (or 30 Lakh) for the first time. As of July 31, 2022, the industry’s AUM was 37.75 trillion rupees (37.75 lakh crore). 

The Pradhan Mantri Jan Dhan Yojana (PMJDY), which was introduced on March 10, 2021, has resulted in the opening of 420 million bank accounts that aided the financial inclusion of the Indian population. The AePS platform is the world’s largest payment-integrated biometric system and has achieved astounding year-on-year growth since its launch in 2016 owing to exponential growth in OFF-US AePS transactions in recent years. 

Vedant ASSETS

In rural India total of 276.5 million bank accounts were opened of which 53.26% were opened by women in rural and semi-urban areas (232.7 million). According to government estimates, the institutionalization of DBTs for social security schemes and governance improvements, which included eliminating fraudulent transactions and duplicate or fictitious beneficiaries, have saved a total of INR1,78,396.65 crore (US$25,485.2 million) since March 2020. 

Vedant Asset Ltd–Company Overview 

Under the terms of the Companies Act of 2013, Vedant Asset LTD was first incorporated on July 7, 2015, as a Private Limited Company with the Registrar of Companies in Jharkhand under the name and style Vedant Asset Advisors Private Limited. 

Through a partner base of more than 350 Vedant Mitra partners operating in various rural and semi-urban locations and managing more than 100 crores of assets under ITS Mutual fund distribution business, Vedant Assets LTD is engaged in the business as a Corporate Business Correspondents (BC) of Bank of India, Jharkhand Rajya Gramin Bank (JRGB), and Madhya Pradesh Gramin Bank (MPGB).

Vedant Asset IPO- Business

Vedant Mitra Kendra serves as a Banking – Customer Services Point (CSP) to satisfy all of the public’s banking needs, including air, rail, and bus ticketing, an Adhaar-enabled payment system, Direct Money Transfer (DMT), mutual fund investment through mPOS, PAN-related services, insurance, loan, and recharge services. Additionally, Vedant Assets LTD is trying to extend its offerings in the areas of delivering vital services via a network of Vedant Mitra Kendras and distributing government DBT and Adhaar-linked subsidies. 

Vedant Asset IPO- Business Model

Vedant Asset Ltd–Competition 

Vedanta Asset is up against competition both at the segmental level and at the partner level. The competition at the segment level is between businesses that directly provide financial services, such as different banks, mutual funds, and partner levels where various businesses provide CSPs and entice customers to open them.  

Vedant Asset has a strong local presence, an established network and reputation, and the capacity to offer a variety of services in one place that set it apart from its rivals. Vedanta Asset enjoys a competitive advantage thanks to its knowledge-based business model and friendly relationships with numerous partners. 

Vedant Asset LTD IPO – Proceeds 

Vedant Asset LTD is planning to use the Net Proceeds from the Issue for the following purposes: 

1.To meet the cost of business expansion. 

2. To fulfil working capital needs. 

3. For corporate purposes. 

4. To cover issue expenses. 

Vedant Asset Ltd – Financial Statements 

Vedant Asset financials

Vedant Asset Ltd – Valuation

Vedant Asset IPO- Valuation

Vedant Asset LTD IPO –Strengths 

  • Strong product ties and multi-product support – Over the years, Vedant Asset has developed strong ties and collaborations with numerous partners in the banking and other industries, enabling them to meet the various financial demands of the local populace. 
  • A single point of contact: Vedant Asset Mitra Kendra provides a wide range of services and serves as a one-stop shop for many of the public’s financial needs. 
  • Expertise in technology and integration: Vedant Asset strives to offer the most modern technology and the best integration with partner systems and banking servers. 
  • Vedant Asset’s business approach places a strong emphasis on four critical areas: partnerships and tie-ups, partner engagement, research and operations, and analytics and IT. 
  • The Vedant Asset’s promoters, Mr. Lalit Tripathi and Mrs. Priyanka Maheshwari, have a combined experience of almost 25 years and 18 years, respectively, in the financial services, mutual fund distribution, and financial distribution services industries. 

 Vedant Assets LTD IPO – Weakness 

  • Relationships with banks and mutual fund AMCs are the foundation of Vedant Asset Management’s operations. They have contracts with banks and are registered with mutual fund AMCs; if these relationships are terminated, it can have a negative impact on their operations, financial state, and future prospects. 
  • Changes in investor and consumer attitudes and behaviors may result in a decline in demand for Vedant asset services, which might have a materially negative impact on their operations, financial situation, and business. 
  • Any unfavorable impact on Banking Partners and Mutual Fund AMCs could have a detrimental impact on the business, operational results, and financial health of Vedant Asset, which depends on their continuous success and good standing. 
  • Any decline in activities or partnerships with Vedant Mitra Partners could have a negative impact on the company’s operations, financial condition, and results. 
  • Due to Vedant Asset’s lack of expertise in the geographies, they plan to establish in, it may be unable to identify viable locations for expansion and may face additional risks if it decides to enter new markets and territories. 

Vedant Asset LTD IPO Registrar  

Bigshare Services Pvt Ltd 
 
Phone: +91-22-6263 8200 
Email: ipo@bigshareonline.com 
Website: http://www.bigshareonline.com 

Company Contact Information 

Vedant Asset Limited 
3rd Floor, Gayways House, 
Pee Pee Compound, 
Ranchi, Jharkhand 834001 
Phone: +91 0651-3594782 
Email: cs@vedantasset.com 
Website: http://www.vedantasset.com/ 

Vedant Asset ltd IPO Lead Managers 

HEM SECURITIES LIMITED 
904, A Wing, Naman Midtown 
Senapati Bapat Marg, Elphinstone Road, Lower Parel 
Mumbai – 400013, Maharashtra, India 
Phone: +91-022-49060000 
Email: ib@hemsecurities.com 
Website: www.hemsecurities.com 

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