Credo Brands Marketing Limited (Mufti Menswear) is launching its IPO. The IPO opens for subscription on December 19, 2023, and will close on 21st December.
What does Credo Brands Marketing do?
Founded in 1999, Credo Brands Marketing Limited, known for its flagship brand “Mufti,” specializes in casual menswear. Starting with a basic range of shirts, T-shirts, and trousers in 1998, the company now offers a diverse product line including jeans, cargo, chinos, and more, catering to various styles like relaxed casual, urban wear, and athleisure.
Key aspects of Credo Brands Marketing Limited include:
- Extensive Retail Network: As of May 31, 2023, the company operates 1,773 outlets across India, including exclusive brand stores, large format stores, and multi-brand outlets.
- Geographical Reach: The company’s presence spans 582 cities as of March 31, 2023, showcasing significant expansion.
- Design and Innovation: A dedicated design team of 15 members, responsible for over 1,348 designs in the 2023 financial year, focuses on aligning with contemporary fashion trends.
- Retail Focus: Specializing in the retail of garments and accessories, the company does not engage in manufacturing.
- Brand Philosophy: “Mufti,” launched 25 years ago, was introduced as an innovative and expressive alternative in menswear.
What is the issue size of Credo Brands Marketing Limited IPO?
The public offering is a Rs. 549.78 crore Offer for Sale (OFS). The sale consists entirely of existing shareholders offering 1.96 crore shares.
Financials of Credo Brands Marketing Limited IPO
| Financial Year | Total Assets (₹ crores) | Total Revenue (₹ crores) | Profit After Tax (₹ crores) | EPS | EBITDA (₹ crores) |
|---|---|---|---|---|---|
| March 31, 2021 | 416.99 | 261.15 | 3.44 | 0.54 | 48.48 |
| March 31, 2022 | 476.05 | 354.84 | 35.74 | 5.56 | 95.09 |
| March 31, 2023 | 574.48 | 509.32 | 77.51 | 12.06 | 163.85 |
| June 30, 2023 | 592.38 | 119.43 | 8.58 | 1.33 | 30.25 |
Risk factors to consider:
Consumer Demand Sensitivity: Business focuses on men’s casual wear, vulnerable to changing preferences impacting operations and finances.
Brand Perception: Sole brand ‘Mufti’; marketing or brand perception issues may harm business, finances, and operations.
Manufacturing Dependency: Rely on third-party manufacturers without exclusivity; disruptions or quality issues could harm operations and finances.
Offline Sales Dependence: Majority revenue from offline channels; limited online growth exposes to potential risks.
Seasonal Sales: Subject to seasonality; lower sales may impact financial stability.
Franchise Store Payments: Reliance on timely purchases and payments; disputes or delays may affect business and cash flow.
Lease Agreement Risks: Real estate leasing for outlets and offices; non-compliance or location shifts may impact business.
E-commerce Pricing Challenges: Fixed-margin model in online sales; inability to control pricing strategies and market trends may impact results.
Debt and Interest Rate Risks: Incurred indebtedness; non-compliance with repayment and variable interest rates may impact business and finances.
Promoter Influence: Promoters hold a majority share post-offer, influencing shareholder decisions.
Schedule/Timeline of Credo Brands Marketing Limited IPO
| Issue Period | December 19, 2023, to December 21st, 2023 |
|---|---|
| Price band | ₹ 266 -280 |
| Minimum Bid quantity | 53 & Multiples thereof |
| Deadline for accepting UPI mandate | 5:00 PM on the issue Closing Date. |
| Finalization of Allotment | December 22, 2023 - Friday |
| Initiation of Refunds | December 26, 2023 - Tuesday |
| Credit of Shares | December 26, 2023 - Tuesday |
| Date of Listing | December 27, 2023 - Wednesday |
| Mandate end date | January 5, 2023 - Friday |
| Anchor Investors Lock-In End Date | |
| (50% of the Investment) | January 22, 2024 - Monday |
| Anchor Investors Lock-In End Date | |
| (Remaining of the Investment) | March 20, 2024 - Wednesday |
How to apply for the Credo Brands Marketing Limited IPO?
You can apply for Credo Brands Marketing Limited IPO using any supported UPI app by following two steps:
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Enter your bid on Kite
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Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status of the Credo Brands Marketing Limited IPO?
You can check the allotment status for the Credo Brands Marketing Limited IPO on the website of the Registrar and Transfer Agent. Alternatively, you can also check the allotment status on the NSE website.