Credo Brands Marketing Files For IPO
Bennett Coleman & Co currently holds 12.36% stake in Mufti.
MUMBAI, July 16 (The CONNECT) – Mufi jeans owner Credo Brands Marketing has filed its Draft Red Herring prospectus (DRHP) with capital market regulator Sebi to raise funds through for its initial public offering (IPO).
The IPO with a face value of Rs 2 is a complete offer for sale (OFS) of up to 19.63 million shares by promoter, promoter group and other selling shareholders.
Mufti , celebrating its silver jubilee, is one of the largest homegrown brands in the mid-premium and premium men’s casual wear market in India in terms of market share in Fiscal 2022.
The offer for sale comprises of up to 4.14 million shares by Kamal Khushlani, up to 4.27 million shares by Poonam Khushlani, up to 1.08 lakh by Sonakshi Khushlani, up to 1.08 lakh shares by Andrew Khushlani, up to 2.03 million shares by Concept Communications Ltd, up to 5.03 million shares by Bela Properties Private Ltd, up to 1.97 million shares by Jay Milan Mehta, up to 1.97 million shares by Sagar Milan Mehta.
Kamal Khushlani introduced the brand “Mufti” aiming to revolutionize men’s fashion by offering casual clothing options that are creative, bold, and expressive, catering to the contemporary Indian man. The brand offers a wide array of wardrobe solutions for different occasions in customers’ lives, encompassing a range of products such as shirts, t-shirts, jeans, chinos, and more, ensuring year-round clothing options are available.
Bennett Coleman & Co. in the year 2008, made an investment of Rs 9.29 crore for 9.72% ownership, currently holds 12.36% stake, the third largest shareholder after Kamal Khushlani with a 33.84% stake and Poonam Khushlani with a 27.62% stake.
As of May 31, 2023, Credo Brands Marketing has a presence across India with 1,773 touchpoints, including 379 EBOs, 89 LFSs, and 1,305 MBOs, reaching major metros as well as Tier-3 cities. It also has a website, www.muftijeans.in, and other e-commerce platforms for its online customers.
For the fiscal year 2023, the restated revenue from operations increased 46.02% to Rs 498.18 crore against Rs 341.17 crore a year ago on the back of increase revenue generated from the sales of products and also with an increase in exclusive brand outlet (EBOs). Net profit for the period more than doubled from Rs 35.74 crore in fiscal 2022 to Rs 77.51 crore in fiscal 2023.
Credo Brands Marketing follows an asset-light model, outsourcing manufacturing operations to various partners. This approach enables them to focus on product design and maintain quality through multiple checks.
DAM Capital Advisors Limited, ICICI Securities Limited and Keynote Financial Services Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
