C P S Shapers IPO

C P S Shapers is coming up with an IPO consisting of a fresh issue of INR 6,00,000 shares aggregating to INR 11.10 crores. The company plans to meet its capital expenditure and repay the borrowings of the company with the funds raised. 

C P S Shapers IPO – Important Details

C P S Shapers IPO Date 29th August-31st August 2023
C P S Shapers IPO Listing Date 7th September 2023
C P S Shapers IPO Price INR 185 per share
C P S Shapers IPO Lot Size 600 shares
C P S Shapers IPO Total Issue Size OFS for 5,72,60,001 shares amounting to INR 11.10 crores
C P S Shapers IPO Basis of Allotment 5th September 2023
C P S Shapers IPO Initiation of Refunds 6th September 2023
C P S Shapers IPO Credit of Shares to Demat 7th September 2023
C P S Shapers IPO Issue Type 100% Fixed price issue
C P S Shapers IPO Listing At NSE SME

C P S Shapers IPO – Company Profile

C P S Shapers Limited is engaged in the business of manufacturing shapewear for men and women like V-Shaper, Saree Shapewear, Active Pants, ShapeX Denim, etc. The company is popularly known and identified in the apparel market by its brand name, “Dermawear,” with its motto “Shape up with Confidence” and “YDIS” (“Your Dress Is Shapewear”). 

The company distributes the products both by e-retail and offline model, and has developed a sustainable business model over the period.

The company is promoted by Mr. Abhishek Kamal Kumar and Mr. Rajendra Kumar. The promoters manage and control the major affairs of business operations with their considerable experience in the Industry.

C P S Shapers IPO Fundamental Analysis

Revenue Growth:

Revenue has shown a consistent upward trend over the three fiscal years, growing from ₹1,439.12 lakhs to ₹3,681.45 lakhs.

Profitability:

Profit After Tax (PAT) has also been increasing, from ₹38.05 lakhs to ₹246.09 lakhs, which is a positive sign.

Return on Net Worth (RoNW):

The RoNW has shown a dramatic improvement, moving from negative to positive, indicating a significant turnaround in the company’s ability to generate profits from its equity.

Earnings Per Share (EPS):

The diluted EPS has increased significantly, which is a positive indicator of the company’s earning potential on a per-share basis.

Net Asset Value (NAV) per Equity Share:

The NAV per equity share has moved from negative to positive, indicating a growth in the company’s intrinsic value.

Asset and Liability Management:

Total assets have been growing steadily, while liabilities have also increased but not at an alarming rate, indicating good asset and liability management.

Summary:

The financials of C P S Shapers depict a strong growth trajectory in revenue and a significant improvement in profitability. The dramatic turnaround in RoNW and the positive growth in NAV per equity share are encouraging signs. However, investing in an IPO involves risks and should be based on a comprehensive analysis of the company’s financials, the industry it operates in, and the broader economic environment. It’s advisable to consult with a financial advisor to understand the risks and rewards better before making an investment decision in the IPO.

C P S Shapers IPO Financial Information

Particular As at 31 March 2021 As at 31 March 2022 As at 31 March 2023
Revenue (₹ in lakhs) 1,439.12 2,668.35 3,681.45
Equity (₹ in lakhs) (228.03) (70.97) 175.12
Expenses (₹ in lakhs) 1 ,405.08 2,545.48 3,350.95
Profit and Loss After Tax (₹ in lakhs) 38.05 157.06 246.09
RoNW (%) (16.69) % (221.31) % 140.53%
Diluted EPS only (₹) 2 .54 10.47 16.41
NAV per Equity Share (₹) (15.20) (4.73) 11.67
Total Assets (in lakhs) 1,102.02 1,275.48 1,751.20
Total Liabilities (in lakhs) 1,330.05 1,346.45 1,576.08

C P S Shapers IPO Peer Comparison

CPS Shapewear Limited shows a lower total income but a higher RoNW than peers, indicating efficient equity utilization. Its P/E ratio is lower than most peers, suggesting it might be undervalued. However, its NAV per equity share is significantly lower, indicating lesser intrinsic value per share.

Company Total Income (₹ in lakhs) Face Value per Equity Share (₹) P/E EPS (Basic) (₹) RoNW (%) NAV per Equity Share (Basic) (₹)
CPS Shapewear Limited 3,681.45 10 11.28 16.41 140.53% 11.67
Page Industries Limited 4,78,863.96 10 78.85 512.15 41.67% 1229.21
Lux Industries Limited 2,35,060.00 2 30.29 48.80 10.03% 467.49
Dollar Industries Ltd 1,39,380.05 2 41.65 10.27 8.11% 126.54
K.P.R Mill Limited 4,57,081.00 1 39.38 18.57 21.36% 86.98
Arvind Limited 7,72,269.00 10 12.58 13.26 10.49% 126.06

C P S Shapers IPO Objective

CPS Shapers’ IPO aims to raise funds for capital expenditure (INR 2.27 crores), repay borrowings (INR 1.67 crores), and address working capital needs (INR 4.06 crores) related to software upgrades, machinery, vehicles, and solar power.

  • Funding the capital expenditure: The company proposes to utilize INR 2.27 crores for meeting their proposed capital expenditure of upgrading their softwares, purchasing plant and machinery, commercial vehicles, solar power systems, etc
  • Repayment of borrowings of the company: The company proposes to utilize INR 1.67 crores to repay certain borrowings availed by the company.
  • Funding the working capital requirement: The company’s business is working capital intensive, and the company proposes to utilize INR 4.06 crores for this purpose.

C P S Shapers IPO Risks And Challenges

CPS Shapers faces dependency risk, with 72% of revenue from the top 10 customers without long-term contracts. Its e-retail model lacks physical outlets, posing trust issues, and revenue lacks diversification, with 42% from saree shapewear as of March 2023.

    1. Dependency Risk: The company is generating 72% of its revenue from the top 10 customers, and the company does not have any long-term contract with them. If one or more of such customers choose not to source their requirements from them, their business, financial condition, and results of operations may be adversely affected.
    2.  Lack of physical outlet: The distribution model is based on the e-retail model and we do not have any customer facing retail outlets. Lack of consumer trust in the e-retail industry or in the event of lack of growth of ecommerce activities in India and outside India, may adversely affect the operations. 
    3. Lack of revenue diversification: The company derives a significant portion of the revenue from one of their products- saree shapewear. As on 31st March 2023, almost 42% of the revenue comes from saree shape wear. 

C P S Shapers IPO – Industry & Market Potential

India’s textile sector is one of the oldest industries in the Indian economy, dating back several centuries. The industry is extremely varied, with hand-spun and hand-woven textiles sectors at one end of the spectrum with the capital-intensive sophisticated mills sector at the other end. 

The fundamental strength of the textile industry in India is its strong production base of a wide range of fiber/yarns, from natural fibers like cotton, jute, silk, and wool to synthetic/man-made fibers like polyester, viscose, nylon, and acrylic.

The Indian textile and apparel industry is expected to grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26. India has a 4% share of the global trade in textiles and apparel.

C P S Shapers IPO – Type of Offer

CPS Shapers is issuing new shares worth INR 11.10 crores. The company is issuing 6,00,000 new equity shares. The company plans to meet its capital expenditure and repay the borrowings of the company with the funds raised. 

C P S Shapers IPO Offer Size

The offer size of CPS Shapers IPO is INR 11.10 crores, consisting of 6,00,000 shares issued at INR 185 each. 

C P S Shapers IPO Allotment Structure

CPS Shapers’ Fixed price IPO follows an allotment structure where Retail Individual Investors can apply for multiples of 600 shares up to INR 2 lakhs. Others can apply in multiples exceeding INR 2 lakhs. Market Makers get 31,200 equity shares.

Retail Individual Investors (RII): Multiples of 600 shares such that the application value does not exceed INR 2 lakhs. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.

Other than retail individual investors: Multiples of 600 shares such that the application value exceeds INR 2 lakhs.

Market Maker Reservation: Application size shall be 31,200 equity shares since there is firm allotment.

How to apply for a C P S Shapers IPO?

To apply for the C P S ShapersIPO through Alice Blue, you would typically follow these steps:

 Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.

  1. Check for IPO Details: Once your account is active, you can check for the C P S Shapers IPO details in the IPO section of the Alice Blue platform.
  2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
  3. Submit the Application: Confirm all your details and submit your application.

 You can apply for CPS Shapers IPO at Alice Blue in just a few clicks!

 Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.

 Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to Check C P S ShapersIPO Allotment Status on Alice Blue?

 Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

 Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.

  1. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
  2. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.