Credo Brands Marketing Pvt., owner of Mufti menswear brand, launched its initial public offering on Tuesday.
The IPO for Rs 549.78 crore, comprises an offer for sale of 1.96 crore shares.
The price range for the IPO is Rs 266 to Rs 280 per share, with a minimum application lot size of 53 shares.
Retail investors are required to make a minimum investment of Rs 14,840. Small non-institutional investors need to invest in a minimum of 14 lots (742 shares), totaling Rs 2.07 lakh. While, big non-institutional investors are required to invest in a minimum of 68 lots (3,604 shares), amounting to Rs 10.09 lakh.
Issue Details
Issue opens: Dec. 19.
Issue closes: Dec. 21.
Face value: Rs 2 per share.
Price band: Rs 266-280 per share.
Lot size: 53 shares.
Fresh issue size: Rs 549.78 crore.
Total issue size: Rs 549.78 crore.
Issue type: Book-building process.
Listing: BSE and NSE.
Use Of Proceeds
Realise the advantages of having the equity shares listed on the bourses.
Conduct the offer for sale of a maximum of 1.96 crore equity shares.
The company anticipates that the planned listing will improve visibility and brand image, offering liquidity to shareholders and establishing a public market for the equity shares in India.
Business
Credo Brands Marketing's flagship brand, Mufti, was introduced 25 years ago to offer alternative dressing solutions for men. Its product range includes shirts, t-shirts, jeans, and chinos, providing year-round clothing options.
The company is focused on delivering youthful aesthetics, while staying abreast with current fashion trends. CBML is involved in the retail sale of garments and accessories and does not engage in apparel manufacturing.
Shareholding Pattern
The promoters of the company are Kamal Khushlani and Poonam Khushlani.
Financial Performance
The company's net profit has risen in the last three fiscals. It stood at Rs 77.51 crore in FY23, compared to Rs 35.74 crore in FY22 and Rs 3.44 crore in FY21.
Total income has also jumped in the last three years. In FY21 it stood at 261.15 crore and rose to Rs 354.84 crore in FY22. It stood at Rs 509.32 crore during the year.
However, net profit was at Rs 8.58 crore in Q1 FY24. While total income was Rs 119.43 crore in the quarter ended June.
Key Risks
Reliance on the sale of men's casual western wear makes it susceptible to changes in demand and consumer preferences, potentially impacting business.
Exclusive branding of all products under Mufti poses a risk, as ineffective marketing or a negative shift in brand perception could decrease consumer engagement.
Highly competitive markets, both offline and online.
Pricing pressure from competitors.
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