Credo Brands Marketing Limited IPO

Credo Brands Marketing Limited IPO

Credo Brands Marketing Limited (Mufti Menswear) is coming up with an IPO. This consists of an offer to sell INR 1.96 crore existing equity shares. The company aims to benefit from listing equity shares and enhance its brand image among existing and potential customers.

Credo Brands Marketing IPO – Important Details

Credo Brands Marketing Ltd IPO Date19 December 2023- 21 December 2023
Credo Brands Marketing Ltd IPO Listing DateDecember 27, 2023
Credo Brands Marketing Ltd IPO PriceINR 266-280
Credo Brands Marketing Ltd IPO Lot Size53 Shares
Credo Brands Marketing Ltd IPO Total Issue SizeINR 549.78 crores
Credo Brands Marketing Ltd IPO Basis of AllotmentDecember 22, 2023
Credo Brands Marketing Ltd IPO Initiation of RefundsDecember 26, 2023
Credo Brands Marketing Ltd IPO Credit of Shares to DematDecember 26, 2023
Credo Brands Marketing Ltd IPO Issue TypeBook Built Issue IPO
Credo Brands Marketing Ltd IPO Listing AtBSE,NSE

Credo Brands Marketing Limited IPO – Company Profile

Credo Brands Marketing Limited is a leading Indian brand in mid-premium and premium men’s casual wear, dominating market share. Their diverse wardrobe solutions include shirts, t-shirts, jeans, and chinos designed for year-round wear, offering a stylish and youthful look aligned with current fashion trends.

Launched by Kamal Khushlani 25 years ago, “Mufti” revolutionized menswear, providing a stylish alternative for the contemporary Indian man. Initially offering shirts and trousers, the brand has evolved into a diverse range, including athleisure, constantly expanding to meet consumer needs.

Their products are accessible nationwide through a well-established multichannel distribution network, including exclusive brand outlets, large format stores, and multi-brand outlets. Additionally, they reach consumers online, ensuring strategic availability across preferred shopping channels for diverse product categories.

Credo Brands Marketing Limited IPO – Fundamental Analysis

Credo Brands Marketing’s IPO showcases impressive financial metrics, including consistent revenue growth, increased profitability, improved efficiency ratios, and strong liquidity, promising potential investment prospects.

Revenue Growth: 

The company has shown consistent revenue growth from ₹2,448.26 million in 2021 to ₹4,981.82 million in 2023, indicating a positive trend.

Profitability: 

Notably, the Profit and Loss After Tax has substantially increased from ₹34.41 million in 2021 to ₹775.14 million in 2023, displaying significant profitability improvement.

Return on Net Worth (RoNW): 

The RoNW has also surged, reaching 29.98% in 2023 from 1.81% in 2021, indicating better utilization of shareholders’ funds.

Earnings per Share (EPS): 

The Diluted EPS has improved from ₹0.54 in 2021 to ₹5.60 in 2023, showcasing enhanced earnings per outstanding share.

Debt Equity Ratio: 

The company has maintained a reasonable Debt Equity Ratio, which has slightly increased from 0.75 in 2021 to 0.68 in 2023, indicating acceptable debt levels.

Inventory Turnover Ratio: 

A steady increase in the Inventory Turnover Ratio suggests efficient management of inventory, improving from 4.13 in 2021 to 5.56 in 2023.

Current Ratio: 

The Current Ratio has been consistently maintained at 3.00, reflecting good liquidity and the ability to meet short-term obligations.

Gross Profit Margin: 

A positive trend is seen in Gross Profit Margin, rising from 48.93% in 2021 to 57.46% in 2023, indicating improved operational efficiency.

Credo Brands Marketing IPO Financial Information

ParticularAs at 31 March 2021As at 31 March 2022As at 31 March 2023
Revenue(₹in millions)2,448.263,411.724,981.82
Equity(₹ in millions)1,923.332,357.262,813.51
Expenses (₹in millions)2,571.463,070.024,055.10
Profit and Loss After Tax (₹ in millions)34.41357.40775.14
RoNW (%)1.8116.7029.98
Diluted EPS only (₹)0.545.565.60
NAV per Equity Share (₹)30.1336.9243.75
Total Assets (in millions)4,169.904,760.495,744.80
Total Liabilities (in millions)2,246.572,403.232,931.29
Debt Equity Ratio  0.750.650.68
Inventory Turnover Ratio4.135.495.56
Current Ratio2.873.003.00
Gross Profit Margin (%)48.9356.8957.46

Credo Brands Marketing Limited IPO Peer Comparison

Credo Brands Marketing exhibits strong revenue at ₹5,093.22M with EPS of ₹12.06. Comparatively, peers vary: Aditya Birla Fashion shows negative EPS, Go Fashion boasts high EPS, while Arvind Fashions and Kewal Kiran Clothing present moderate performance.

CompanyTotal Revenue (₹ in million)Face Value per Equity Share (₹)P/EEPS (Basic) (₹)EPS (Diluted) (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
Credo Brands Marketing Limited5,093.2210NA12.0612.0629.9843.76
Aditya Birla Fashion and Retail Limited1,25,343.6010NA(0.38)(0.38)(1.18)35.24
Go Fashion (India) Limited6,771.941071.5515.3315.3317.2796.36
Arvind Fashions Limited44,735.804123.132.842.834.4268.48
Kewal Kiran Clothing Limited7,996.701029.4519.3119.3123.2288.76

Credo Brands Marketing IPO Objective

Credo Brands Marketing’s objective is to make an offer to sell 1.96 crore equity shares and sit these shares on the stock exchange. It aims to achieve the benefits of listing equity shares and to enhance its brand image among its existing and potential customers.

Credo Brands Marketing IPO Risks And Challenges

Credo Brands Marketing relies on anticipating customer preferences with technology like ERP Ginesys and QlikView. Expansion across channels demands efficient management and internal controls. Seasonal demand and reliance on third-party suppliers pose risks to operations, costs, and margins.

  1. The success of Credo Brands Marketing’s men’s casual western wear business relies on accurately anticipating and responding to rapidly changing customer preferences. Failure to do so may lead to excess stock, discounted sales and adverse impacts on financial conditions.
  1. Their business relies on seasonal demand and needs help accurately predicting product demand. Manufacturing outsourcing involves centralized ordering for raw materials. Dependency on third-party suppliers poses risks, impacting costs, margins, and operational continuity.
  1. All the products are sold under a single brand, ‘Mufti’. Any inability to effectively market the products, or any deterioration in public perception of the brand, could adversely impact the business, financial condition, cash flows and results of operations.

Credo Brands Marketing IPO – Industry & Market Potential

The last decade has witnessed a surge in the popularity of men’s casual western wear, driven by its acceptance for daily use. Organized players, focusing on functionality, comfort, and affordability, contribute to the growth, with key categories being T-shirts, Casual Shirts, and Denims. Brand strategies vary; some offer a balanced mix, while others focus more on specific categories. Notable brands include Mufti, Levi’s, Pepe, Tommy Hilfiger, Calvin Klein, U.S Polo, and Indian Terrain.

India’s young population and focus on entertainment drive discretionary spending, notably in Western wear. The influence of international fashion through social media platforms and the convenience of online shopping has fueled significant growth in organized men’s Western wear in India over the past decade.

Leading brands have found value in owning a website, allowing tailored offerings and audience appeal beyond generic e-commerce platforms. Post-COVID websites enhance brand visibility, foster online communities, facilitate promotions, and aid in clearing excess inventory.

Credo Brands Marketing Limited IPO – Type of Offer

Credo Brands Marketing is coming up with an offer to sell 1.96 crore existing shares. Along with the other shareholders, the below are the details of the promoters selling their existing shares:

Name of the promoter selling shareholderMaximum number of offered shares for sale 
Kamal Khushlani4,140,000
Poonam Khushlani4,275,000

Credo Brands Marketing Ltd IPO Offer Size

Credo Brands Marketing is planning to launch an IPO. This offering entails the sale of 1.96 crores of equity shares by current shareholders. This offer aims to achieve the benefits of listing equity shares and enhance their brand image among their existing and potential customers.

 Credo Brands Marketing Ltd IPO Allotment Structure

Credo Brands Marketing Limited IPO allocation designates 50% to Qualified Institutional Buyers (banks, mutual funds, insurance), 15% to Non-Institutional Investors (corporates, high-value individuals), and 35% to Retail Individual Investors (individuals with smaller investments), which complies with SEBI regulations.

  • Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies
  • Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
  • Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.

How to apply for a Credo Brands Marketing Limited IPO?

To apply for the Credo Brands Marketing IPO through Alice Blue, you would typically follow these steps:

1.  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.

2.  Check for IPO Details: Once your account is active, you can check for Credo Brands Marketing IPO details in the IPO section of the Alice Blue platform.

3.  Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.

4.  Submit the Application: Confirm all your details and submit your application.

 You can apply for the Credo Brands Marketing  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 Credo Brands Marketing Limited IPO Allotment Status on Alice Blue?

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

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

2.  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.

3.  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.

4.  Select the Credo Brands Marketing Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Credo Brands Marketing IPO.

5.  Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.

Apart from Alice Blue, there are other ways to check the allotment status of the Credo Brands Marketing Limited IPO:

Registrar’s Website: Visit the website of Link In time India Private Limited, the registrar of the Credo Brands Marketing Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.

 Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.

Credo Brands Marketing Limited IPO Offer Registrar

The registrar for the Credo Brands Marketing Limited IPO is Link In time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information of the registrar:

 Link In time India Private Limited

C-101, 1stFloor, 247 Park

L.B.S. Marg, Vikhroli (West)

Mumbai 400 083

Maharashtra, India

Telephone: +9181081 14949

E-mail: [email protected]

Website: www.linkintime.co.in

Credo Brands Marketing Limited IPO FAQs

1. What is the allotment date of the Credo Brands Marketing Limited IPO?

The allotment date of Credo Brands Marketing Limited IPO is December 22,2023.

2. What is the price band of Credo Brands Marketing Limited IPO?

The price band of the Credo Brands Marketing Limited IPO shares is INR 266-280 per share.

3. What is the size of the Credo Brands Marketing Limited IPO?

Credo Brands Marketing Limited’ is launching an IPO. This offering comprises an offer to sell 1.96 crore existing equity shares.

4. What is the listing date of the Credo Brands Marketing Limited IPO?

The listing date of Credo Brands Marketing Limited IPO is December 27,2023.

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