Credo Brands Marketing Limited IPO: Key Details, Dates, Objectives, and Risks
Credo Brands Marketing Limited, the powerhouse behind the renowned men's casual wear brand "Mufti," is gearing up for its highly anticipated Initial Public Offering (IPO), also known as the Mufti Menswear IPO, scheduled to kick off on December 19, 2023. In this blog post, we delve into the essential details surrounding Credo Brands Marketing Limited IPO, including dates, financials, objectives, and potential risks.
Company Overview
Established in 1999, Credo Brands Marketing Limited has carved a niche for itself with its flagship brand, Mufti. From its humble beginnings, the company has evolved its product line to encompass a diverse range, spanning shirts, T-shirts, trousers, sweatshirts, jeans, cargos, chinos, jackets, blazers, and sweaters.
Credo Brands Marketing Limited IPO Details
| IPO Date | December 19, 2023, to December 21, 2023 |
| Face Value | ₹2 per share |
| Price Band | ₹266 to ₹280 per share |
| Lot Size | 53 Shares |
| Total Issue Size | 19,634,960 shares (₹549.78 Cr) |
| Offer for Sale | 19,634,960 shares (₹549.78 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Details of the Offer for Sale
| Name of the Selling Shareholders | Type | Number of Equity Shares Offered / Amount (₹ in Million) |
| Kamal Khushlani | Promoter Selling Shareholder | Up to 4,140,000 Equity Shares |
| Poonam Khushlani | Promoter Selling Shareholder | Up to 4,275,000 Equity Shares |
| Sonakshi Khushlani | Promoter Group Selling Shareholder | Up to 108,000 Equity Shares |
| Andrew Khushlani | Promoter Group Selling Shareholder | Up to 108,000 Equity Shares |
| Concept Communication Limited | Other Selling Shareholder | Up to 2,032,260 Equity Shares |
| Bela Properties Private Limited | Other Selling Shareholder | Up to 5,031,260 Equity Shares |
| Jay Milan Mehta | Other Selling Shareholder | Up to 1,970,220 Equity Shares |
| Sagar Milan Mehta | Other Selling Shareholder | Up to 1,970,220 Equity Shares |
Retail Presence
Credo Brands operates an extensive network of 1,773 retail outlets across India. This includes 379 exclusive brand stores (EBOs), 89 large format stores (LFSs), and 1,305 multi-brand stores (MBOs). The company has successfully expanded its footprint to 582 cities, covering major metropolitan areas and Tier 3 cities.
Financial Performance
Credo Brands Marketing Limited has demonstrated robust financial performance, with a noteworthy 117% year-on-year growth in net profits.
| Particulars | FY 23 | FY 22 | Growth % |
| Revenue from operations | ₹498.18 Cr | ₹341.17 Cr | 46.02% |
| Total expenses | ₹405.51 Cr | ₹307 Cr | 32.08% |
| Net Profit | ₹77.51 Cr | ₹35.74 Cr | 116.87% |
Peer Comparison
In comparison to its peers, Credo Brands Marketing Limited IPO stands out with impressive figures.
| Company Name | Face Value (₹ Per Share) | Market Capitalization (₹ Crores) | Total Revenue for FY 2023 (₹ Crores) |
| Credo Brands Marketing Limited | ₹2 | - | ₹509.32 |
| Aditya Birla Fashion and Retail Limited | ₹10 | ₹22,054.64 | ₹12,534.36 |
| Go Fashion (India) Limited | ₹10 | ₹7,306.06 | ₹677.19 |
| Arvind Fashions Limited | ₹4 | ₹5,758.65 | ₹4,473.58 |
| Kewal Kiran Clothing Limited | ₹10 | ₹4,788.27 | ₹799.67 |
Business Highlights
- Mufti's exclusive brand outlets witnessed an impressive 11% Compound Annual Growth Rate (CAGR).
| Brands | 2021 | 2023* | CAGR (2021-2023) |
| Mufti | 306 | 379 | 11% |
| Benetton | 350 | 400 | 7% |
| Levi Strauss & Co. | 323 | 357 | 5% |
| Spykar | 210 | 240 | 7% |
| Wrogn | 38 | 58 | 24% |
| Indian Terrain | 157 | 182 | 8% |
| Killer | - | 382 | NA |
| Jack & Jones | 124 | 161 | 14% |
Key Takeaways
- Offer for Sale (OFS): The Credo Brands Marketing Limited IPO is an exclusive offer for sale, with proceeds flowing to the promoters.
- Financial Strength: Strong financial results in FY23, boasting a net profit growth exceeding 100%.
- Market Dynamics: Operating in the men's casual wear sector, the company is susceptible to changing preferences that may impact its operations and financials.
As investors gear up for Credo Brands Marketing Limited IPO, the disclosed information provides a comprehensive insight into the company's background, financial health, and potential growth trajectory. However, the vulnerability to changing market trends highlights the need for thorough consideration of associated risks before making investment decisions. Stay tuned for further updates as the IPO unfolds on December 19, 2023.