About the Company:
Credo Brands Marketing Limited is a key player in men's casual apparel, known for its flagship brand "Mufti." Initially focused on shirts, T-shirts, and trousers, Mufti has expanded its product range to include sweatshirts, jeans, cargos, chinos, jackets, blazers, and sweaters, catering to various styles.
With over 1,700 retail outlets across India, including exclusive brand stores, large format stores, and multi-brand stores, Mufti has a significant presence in major cities and Tier 3 locations.
IPO Objectives:
The IPO aims to list Equity Shares on Stock Exchanges, conducting an Offer for Sale of up to 19,634,960 Equity Shares. The listing is expected to enhance visibility, boost brand image, and provide liquidity for shareholders, creating a public market for Equity Shares in India.
Promoter Holding:
Credo Brands' leaders, Kamal Khushlani and Poonam Khushlani, held 66.66% of shares before the IPO, expected to decrease to 53.66% post-issue.
Summary of Financial Information:
| Period Ended | 30 Jun 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 592.38 | 574.48 | 476.05 | 416.99 |
| Revenue | 119.43 | 509.32 | 354.84 | 261.15 |
| Profit After Tax | 8.58 | 77.51 | 35.74 | 3.44 |
| Net Worth | 289.88 | 281.35 | 235.73 | 192.33 |
| Total Borrowing | 11.3 | 10.08 | 13.46 | 15.23 |
Key Performance Indicators:
| KPI | Values |
| P/E (x) | 23.22 |
| Post P/E (x) | 23.23 |
| Market Cap (Rs. Cr.) | 1800.45 |
| ROE | 29.98% |
| ROCE | 28.16% |
| Debt/Equity | 0.65 |
| EPS (Rs) | 12.06 |
| RoNW | 29.98% |
Comparison with Peers:
| Company Name | Price (Rs.) | EPS (Rs.) | BV (Rs.) | P/E (x) | P/B (x) | RoE (%) |
| Credo Brands Marketing Limited | 280 | 12.06 | 43.75 | 23.22 | 6.40 | 29.98 |
| Aditya Birla Fashion and Retail Limited | 233.45 | -0.38 | 35.24 | - | 6.62 | - |
| Go Fashion (India) Limited | 1297.45 | 15.33 | 96.36 | 84.63 | 13.46 | 17.27 |
| Arvind Fashions Limited | 404.7 | 2.77 | 68.48 | 146.10 | 5.91 | 4.42 |
| Kewal Kiran Clothing Limited | 797.55 | 19.31 | 88.76 | 41.30 | 8.99 | 23.22 |
Key IPO Details:
| IPO Date | December 19 to December 21, 2023 |
| Listing Date | December 27, 2023 |
| Face Value | Rs. 2 per share |
| Price Band | Rs. 266 to Rs. 280 per share |
| Lot Size | 53 Shares |
| Total Issue Size | 19,634,960 shares of Rs. 2 (aggregating up to Rs. 549.78 Cr) |
| Offer for Sale | 19,634,960 shares of Rs. 2 (aggregating up to Rs. 549.78 Cr) |
| GMP | Rs. 131 (46.79%) [Only for Education Purpose] |
Note: For additional information & risk factors please refer to the Red Herring Prospectus
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Disclaimer:Â We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decisions. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
