MUMBAI, Dec 21 (The CONNECT) – The Initial Public Offering of Credo Brands Marketing Limited, the maker of wardrobe solutions major Mufti brand, was subscribed 51.85 times on the final day of bidding.
The issue received bids of 71,27,01,600 shares against the offered 1,37,44,472 equity shares, at a price band of ₹266-280, according to the data available on the stock exchanges.
The retail portion was subscribed 19.94 times, Non-Institutional Investors Portion was subscribed 55.52 times, whereas Qualified Institutional Buyer (QIB) portion subscribed 104.95 times. The issue kicked off for subscription on Tuesday, December 19, 2023 and will close on Thursday, December 21, 2023.
A day prior to the opening of the issue, Credo Brands Marketing Ltd had raised Rs 165 crores from anchor investors. Foreign and Domestic Institutions who participated in the anchor were Integrated Core Strategies (Asia) Pte. Ltd., Morgan Stanley Asia (Singapore) Pte. ODI, Nippon India Small Cap, Aditya Birla SunLife Insurance, Kotak Mahindra Life Insurance, Bajaj Allianz Life Insurance, SBI General Insurance Company Ltd – FRSM, JM Financial Mutual Fund, Subhkam Ventures (I) Pvt. Ltd., and Reliance General Insurance.
Leading brokerages like Marwari Financial Services, HEM Securities and INDSEC Securities have given a SUBSCRIBE rating to the issue, They provide a wide range of products for multiple occasions in a customer’s life, with their product offerings ranging from shirts to t-shirts to jeans to chinos to jackets, which caters to all year-round clothing with a prominent focus on casual wear. Their products are designed to provide a youthful appearance while keeping up with the ongoing fashion trends.
Using their economies of scale they drive efficient partnerships from the back-end to front-end without a need to invest in developing manufacturing facilities. This structure provides them agility with their longstanding sourcing partners allowing them to increase or decrease their supply based on the demand from their various channels.
The company has grown at a two-year CAGR of 43% with a Gross Margin in line with peers. The return ratios are also stronger with a working capital cycle in line with the segment they are catering to. The company is available at an attractive valuation.
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.
Kamal Khushlani launched the brand “Mufti” 25 years ago with a vision to redefine menswear. It believes in providing a meaningful wardrobe solution for multiple occasions in a customer’s life, with our product offerings ranging from shirts to t- shirts to jeans to chinos, that caters to all year-round clothing. The products are designed to provide a youthful appearance while keeping up with the ongoing fashion trends.
Mufti’s product mix has evolved significantly over the past several years from consisting of only shirts and trousers to a wide range of products including t-shirts, sweatshirts, jeans, cargos, chinos, jackets, blazers and sweaters in relaxed holiday casuals, authentic daily casuals to urban casuals, party wear and also athleisure categories as on date.
The products are available through a pan-India multichannel distribution network that we have built over the years comprising of its exclusive brand outlets, large format stores and multi-brand outlets as well as online channels comprising the website and other e-commerce marketplaces. As of September 30, 2023, it has its presence through 1,807 touchpoints consisting of 404 EBOs, 71 LFSs and 1,332 MBOs, with its reach extending from major metros to Tier-3 cities, with a presence in 591 cities.
The Mumbai-based Fashion retailer launched Muftisphere in the year 2014, a customer loyalty programme, to provide benefits to its customers for shopping the brand thereby increasing their stickiness with the brand. As on November 1, 2023, it had 137,000 followers on its Instagram page, 3.40 million followers on its Facebook page and 15,200 subscribers on its Youtube channel.
