SD Retail Limited is coming up with an IPO with a fresh issue of 49,60,000 shares worth INR 64.98 crores. The company aims to set up new EBOs, fund working capital, and support general corporate purposes.
SD Retail IPO – Important Dates
| SD Retail Limited IPO Date | September 20, 2024 to September 24, 2024 |
| SD Retail Limited IPO Listing Date | September 27, 2024 |
| SD Retail Limited IPO Price | INR 124-131 per share |
| SD Retail Limited IPO Lot Size | 1000 Shares |
| SD Retail Limited IPO Total Issue Size | INR 64.98 crores |
| SD Retail Limited IPO Basis of Allotment | September 25, 2024 |
| SD Retail Limited IPO Initiation of Refunds | September 26, 2024 |
| SD Retail Limited IPO Credit of Shares to Demat | September 26, 2024 |
| SD Retail Limited IPO Issue Type | Book Built Issue IPO |
| SD Retail Limited IPO Listing At | NSE SME |
SD Retail Limited IPO – Company Profile
SD Retail Limited designs, manufactures, and markets the “SWEET DREAMS” brand, offering stylish and comfortable sleepwear for the entire family. Their diverse portfolio includes sleepwear, loungewear, athleisure, and work leisure pants across all age groups.
The company efficiently handles bulk orders with a well-equipped manufacturing unit and outsourced contract manufacturing. It offers Essentials for year-round basics and Fashion for seasonal, trend-driven designs.
With a vast distribution network, the company sells products through EBOs, MBOs, e-commerce platforms, and its website. It manages Fashion via bi-annual roadshows and Essentials through year-round replenishment.
SD Retail Ltd IPO Fundamental Analysis
SD Retail Limited’s financial analysis reveals a mixed performance. Revenue has shown consistent growth, but profitability, EPS, RoNW, and inventory turnover have declined, while equity, liabilities, and assets have increased, indicating growth challenges.
- Revenue Trend: The revenue increased from ₹12,852.93 lakhs in March 2022 to ₹13,508.81 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 16,255.89 lakhs.
- Equity and Liabilities: Both equity and liability have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly decreased from ₹1,011.06 lakhs in March 2022 to ₹759.76 lakhs by March 2024. This decline in profitability could be a source of concern among investors.
- Earnings per Share (EPS): The diluted EPS has reduced from ₹7.35 in March 2022 to ₹5.52 by March 2024, reflecting lower earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has reduced from 33.81% to 18.18%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
SD Retail IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 12,852.93 | 13,508.81 | 16,255.89 |
| Equity (₹ in lakhs) | 2,990.05 | 3,420.22 | 4,179.98 |
| Expenses (₹ in lakhs) | 11,710.18 | 12,985.75 | 15,300.49 |
| Profit and Loss After Tax (₹ in lakhs) | 1,011.06 | 430.17 | 759.76 |
| Diluted EPS only (₹) | 7.35 | 3.13 | 5.52 |
| Return on Net Worth (%) | 33.81 | 12.58 | 18.18 |
| NAV per Equity Share (₹) | 21.73 | 24.85 | 30.37 |
| Total Assets (in lakhs) | 7,759.56 | 8,835.65 | 12,225.54 |
| Total Liabilities (in lakhs) | 4,769.51 | 5,415.43 | 8,045.56 |
| Debt Equity Ratio | 0.62 | 0.60 | 1.04 |
| Current Ratio (in times) | 1.55 | 1.56 | 1.42 |
| Inventory Turnover Ratio | 6.63 | 5.51 | 6.29 |
SD Retail Limited IPO Peer Comparison
S D Retail Limited, Go Fashions, Bella Casa Fashion & Retail, and S.P. Apparels are leading companies in the Fashion and retail sector. Each company shows varying profitability, return on net worth, and earnings per share performance.
| Company | Type of Financial | Revenue From Operations (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) |
| S D Retail Limited | Standalone | 16,255.89 | 10 | – | 5.52 | 18.18 | 30.37 |
| Go Fashions (India) Limited | Standalone | 76,282.80 | 10 | 78.67 | 15.32 | 13.82 | 111.81 |
| Bella Casa Fashion & Retail Limited | Standalone | 23,009.88 | 10 | 33.77 | 8.89 | 12.02 | 73.96 |
| S.P. Apparels Limited | Standalone | 94,832.00 | 10 | 14.04 | 41.35 | 14.30 | 31.04 |
SD Retail Ltd IPO Objective
The main objective of SD Retail Limited is to invest in setting up new exclusive brand outlets (EBOs) and fund its working capital requirements to support operational growth and meet increasing demand efficiently.
- Expenditure for opening new Exclusive Brand Outlets (EBOs): The company intends to utilize INR 16.49 crores from the net proceeds to expand its exclusive brand outlets (EBOs) in India, focusing on mall stores and high-street locations for an enhanced consumer experience.
- To Meet its Working Capital Requirement, the company plans to utilize INR 35 crores from the net proceeds for working capital needs and will cover the remainder through borrowings. This will aim to support business expansion and meet its working capital-intensive requirements.
- General Corporate Purposes: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, enhancing business development and marketing capabilities, and addressing unforeseen exigencies.
SD Retail IPO Risks And Challenges
SD Retail Limited’s risk includes the potential ineffectiveness of brand marketing efforts, vulnerability to shifting consumer preferences and economic fluctuations, and intense competition, which could lead to pricing pressures, reduced market share, and financial challenges.
- Brand awareness is crucial for growth and success. The company invests in advertising and marketing to enhance the ‘SWEET DREAMS’ brand but faces risks if campaigns are ineffective. Continued investment in design, marketing, and e-commerce is essential.
- The company focuses primarily on women’s sleepwear, which contributes significantly to revenue. However, changes in customer preferences, economic conditions, and external factors like inflation and political instability can impact demand and financial performance.
- The company faces intense competition from various established and emerging players in the sleepwear industry, which could lead to pricing pressures, reduced market share, and financial challenges. Competing effectively requires strategic pricing, marketing, and online presence.
SD Retail Ltd IPO – Industry & Market Potential
India’s sleepwear market, projected to reach USD 1303.88 million by 2029 with a CAGR of 15.12%, has evolved from simple garments to a diverse, dynamic sector driven by rising incomes, fashion trends, and online retailing.
India’s sleepwear market is vibrant, offering traditional cotton pajamas, stylish loungewear, and themed sets. Growth is fueled by online shopping, which provides easy access to various luxurious, bridal, and maternity options.
The Indian kids’ sleepwear market rapidly expands due to urbanization, rising disposable incomes, and Western fashion influences. Increased online shopping convenience and exposure to global trends have further fueled demand and market growth.
SD Retail Limited IPO – Type of Offer
SD Retail Limited is coming up with an IPO with a fresh issue of 49,60,000 shares worth INR 64.98 crores. The company aims to set up new EBOs, fund working capital, and support general corporate purposes.
SD Retail IPO Offer Size
The offer size of SD Retail Limited is INR 64.98 crores, consisting of a fresh issue of 49,60,000 shares. The company seeks funds to set up new EBOs, fund working capital, and support general corporate purposes.
SD Retail Limited IPO Allotment Structure
SD Retail Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 250,000 shares are reserved for market makers.
● 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.
● Market Maker Reservation: A portion of shares, i.e. 250,000 shares, are reserved for market makers.
How to apply for SD Retail IPO?
To apply for the SD Retail Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the SD Retail Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the SD Retail Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After 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 do you check SD Retail IPO Allotment Status?
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 the trading app.
- 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.
- 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.
- Select the SD Retail Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the SD Retail Limited IPO.
- 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, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the SD Retail Limited IPO:
● Registrar’s Website: Visit the website of Kfin Technologies Limited, the registrar of the SD Retail Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
SD Retail Ltd IPO Offer Registrar
The registrar for the SD Retail Limited IPO is Kfin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFIN TECHNOLOGIES LIMITED
Selenium Tower-B, Plot 31 & 32, Gachibowli,
Financial District, Nanakramguda,
Serilingampally, Hyderabad – 500 032,
Telangana
Tel. No.: +91 40 6716 2222
Email: [email protected]
Website: www.kfintech.com
SD Retail IPO – FAQs
1. What is the allotment date of the SD Retail IPO?
The allotment date of the SD Retail Limited IPO is September 25, 2024.
2. What is the price band of the SD Retail IPO?
The price band of the issue is INR 124-131 per share.
3. What is the size of the SD Retail IPO?
The offer size of SD Retail Limited is INR 64.98 crores, consisting of a fresh issue of 49,60,000 shares. The company seeks funds to set up new EBOs, fund working capital, and support general corporate purposes.
4. What is the listing date of the SD Retail IPO?
The listing date of SD Retail Limited’s IPO is September 27, 2024.
