Credo Brands Marketing Limited IPO

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  1. Product Range and Evolution:
    • Offers a wide range of products including shirts, t-shirts, jeans, chinos, sweatshirts, cargos, jackets, blazers, and sweaters.
    • Started in 1998 with a limited product range and has evolved to meet evolving fashion trends.
  2. Brand Vision and Creation:
    • The brand “Mufti” was launched 25 years ago by the Promoter, Kamal Khushlani.
    • Vision to redefine menswear by providing a casual alternative with a focus on creative, bold, and expressive clothing for the contemporary Indian man.
  3. Market Trends and Opportunities:
    • The company recognizes the growing trend of casualization in men’s wear in India.
    • Emphasis on casual western wear, with categories such as denim, activewear, casual shirts, athleisure, and loungewear growing at a CAGR greater than 20%.
  4. Distribution Network:
    • Products are available through a pan-India multichannel distribution network.
    • Distribution channels include exclusive brand outlets (EBOs), large format stores (LFSs), multi-brand outlets (MBOs), and online channels, including the company’s website and other e-commerce marketplaces.
  5. Strategic Presence:
    • Multi-channel presence strategically planned to make products available across various shopping channels based on consumer preferences.
    • EBOs located nationwide across high streets, malls, airports, and residential market areas.
  6. Brand Reinvention:
    • Conducted internal assessment in 2019 to reinvent the brand philosophy.
    • Accelerated change during COVID-19 by renovating and relocating existing stores.
    • Developed a new merchandise architecture to offer designs suited for specific occasions in customers’ lives.
  7. Asset-Light Model:
    • Asset-light approach with respect to plant, property, and equipment due to outsourcing of manufacturing operations.
    • Focus on product design, with manufacturing outsourced to various partners.
    • Conducts multiple checks to ensure desired quality.
  8. Marketing and Branding:
    • Utilizes targeted marketing campaigns through digital and social media, billboards, multiplex cinemas, and live events.
    • Releases ad films across cinemas to drive strong brand recall.
    • Focuses on enhancing brand awareness and recall for the “Mufti” brand.

Objects of the Credo Brands Marketing Limited IPO:

The objectives of the Offer are to (i) achieve the benefits of listing the Equity Shares on the Stock Exchanges and (ii) carry out the Offer for Sale of up to 19,634,960 Equity Shares. Further, the Company expects that the proposed listing of its Equity Shares will enhance the visibility and brand image and provide liquidity to the Shareholders and a public market for the Equity Shares in India.
DRHP of Credo Brands Marketing Limited IPO
RHP of Credo Brands Marketing Limited IPO

Credo Brands Marketing Limited IPO Details:

Open Date: Dec 19 2023
Close Date: Dec 21 2023
Total Shares: 19,634,960
Face Value: ₹ 2 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 549.78 Cr.
Lot Size: 53 Shares
Issue Price: ₹ 266 - 280 Per Equity Share
Listing At: NSE,BSE
Listing Date: Dec 27 2023

Promoters And Management:

i. Kamal Khushlani is the Promoter, Chairman and Managing Director of the Company. He has completed his degree in bachelor of commerce from the University of Bombay. He has been associated with the Company since its incorporation and has over 25 years of experience in the field of apparel retail. Kamal Khushlani is currently involved in product development, brand building, marketing and overall management while providing strategic direction to the Company. ii. Poonam Khushlani is the Promoter and Whole-Time Director of the Company. She does not hold any formal educational qualification. Poonam Khushlani has been associated with the Company since its incorporation and is a co-founder of the Company. She has over 25 years of experience in the field of apparel retail. Poonam Khushlani is currently responsible for the overall management of the Company iii.Dr. Manoj Nakra is a Non-Executive Director of the Company. He has completed his undergraduate degree in mechanical engineering from the Indian Institute of Technology, Delhi followed by a post graduate diploma in management from the Indian Institute of Management, Bangalore. He has also obtained his degree of Executive Doctor of Management from Case Western Reserve University. He is a co-founder of SCIP Services and Solutions Private Limited, a SaaS platform company. He has been associated with Apparel Group, UAE as Director, Strategy. His expertise and experience include retail and distribution, entrepreneurship, and technology application. He is also a visiting faculty at IIM Bangalore. He is also an independent director in Arvind Fashions Limited.

Financials of Credo Brands Marketing Limited IPO:

Particulars ( In Crore )
2021
2022
2023
3M-FY24
Revenue from Operations 245 341 498 118
Other Income 16 14 11 1
Total Revenue 261 355 509 119
Cost of material consumed 15 16 28 5
Purchases of stock-in-trade 110 138 231 48
Changes in Inventories 0.1 -7 -47 -1
Employee benefits expenses 22 29 27 9
Other Expenses 49 70 96 27
EBITDA 65 109 175 31
Depreciation & Amortisation 44 46 53 15
Finance Cost 17 15 18 5
EBIT 21 63 122 17
OPM (%) 24.82% 30.65% 34.36% 26.12%
PBT 4 48 104 11
Tax 1 12 26 3
PAT 3 36 78 9
NPM (%) 1.32% 10.07% 15.22% 7.18%
No.of Shares 6.43 6.43 6.43 6.43
EPS 0.53 5.55 12.05 1.33

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Credo Brands Marketing Limited 498 78 12.05 23.2 280 1,800
Aditya Birla Fashion and Retail Limited 12,418 -59 -0.38 N/A 233 22,153
Go Fashion (India) Limited 665 83 15.33 82.0 1,298 7,004
Arvind Fashions Limited 4,421 87 2.76 147.0 404 5,379
Kewal Kiran Clothing Limited 779 119 19.36 34.5 796 4,908
* All the data is as per FY23.

Lead Manager of Credo Brands Marketing Limited IPO:

  1. DAM Capital Advisors Ltd (Formerly IDFC Securities Ltd)
  2. ICICI Securities Limited
  3. Keynote Corporate Services Limited

Registrar of Credo Brands Marketing Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Credo Brands Marketing Limited B-8, MIDC Central Road, Marol, Next to MIDC Police Station Andheri (E), Mumbai - 400093, Phone: +91 22 6141 7200 Email: investorrelations@mufti.in Website: https://www.credobrands.in/

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