Kizi Apparels Limited IPO

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Aaika Creations manufactures and trades readymade garments through showrooms, distributors, malls, and online platforms. Recognizing a market gap for premium quality products, the company has positioned itself to meet this demand with high-quality styling and workmanship.

Key Milestones

i. 2019: Collaboration with Arvind Lifestyle Brand Limited, marking a significant breakthrough.
ii. 2020: Partnership with Reliance Retail, leading to substantial business growth even during the COVID-19 pandemic.
iii. 2021: Launched the women’s ethnic wear brand “ANUTARRA” and became a regular manufacturer for Reliance Retail. Introduced the women’s western wear brand “KIZI.”
iv. 2022: Expanded into distribution and wholesale networks, tripling sales and capturing a sizable market share.

Cost Control and Supply Chain

Aaika Creations maintains effective cost control by partnering with major raw material suppliers. The company sources fabric from certified mills in Gujarat, Maharashtra, and Tamil Nadu, and procures trims and accessories directly from manufacturers.

Recent Developments

In 2023, Aaika Creations executed a product supply agreement with Absolute Brands and Retails Private Limited (ABRPS) for the supply of women’s western and ethnic wear, further expanding its retail and e-commerce presence.

With a strong focus on quality, cost control, and strategic partnerships, Aaika Creations continues to grow and innovate in the readymade garments industry.

Objects of the Kizi Apparels Limited IPO:

The company proposes to utilize the Net Proceeds from the issue towards the following objects: i. Repayment of unsecured Loans ii. Long-term Working capital requirement iii. General Corporate Purpose, iv. Meeting Public Issue Expenses.

Kizi Apparels Limited IPO Details:

Open Date: Jul 30 2024
Close Date: Aug 01 2024
Total Shares: 2,658,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 5.58 Cr.
Lot Size: 6000 Shares
Issue Price: ₹ 21 Per Equity Share
Listing At: BSE SME
Listing Date: Aug 06 2024

Promoters And Management:

Abhishek Nathani, aged 44, is a Promoter and Managing Director of the Company. He holds an MBA in Logistics & Supply Chain Management from the University of Petroleum Energy Studies, Dehradun, and a Bachelor's degree in Commerce from the University of Calcutta. He also has a Post Graduate Diploma in Business Management with dual specializations in Marketing and Finance. With over 22 years of experience in finance, marketing, strategic management, and manufacturing, including 8 years of international exposure, he actively formulates and implements business strategies. Kiran Nathani, aged 35, is a Director and the Chief Financial Officer (CFO) of the Company. She holds a Post Graduate Diploma in Management from the National Institute of Management & Technology. With over 15 years of experience in marketing, sales, HR management, strategic planning, key accounts, relationship management, PR, and brand promotion, she excels in multi-tasking and driving team efforts to achieve organizational goals. She is skilled in recommending and implementing service improvements to enhance efficiency and effectiveness. Avani Shah, aged 30 years, is an Independent Director of the Company. She has completed Master degree of Commerce. She has more than 10 years of experience in the field of administration. Presently, she is working with Freight Corridor Corporation of India Limited, a Government of India Enterprise (undertaken by Ministry of Railway) in Ahmedabad since 02/05/2012 till date on contractual basis. She is associated with the company as an Independent Director.

Financials of Kizi Apparels Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 499 1,548 2,027
Other Income 40 1 1
Total Revenue 539 1,550 2,027
Cost of Material Consumed 388 1,305 1,792
Changes in inventories -68 -302 -145
Employees Benefit Expenses 53 163 67
Other Expenses 109 260 139
EBITDA 58 124 175
OPM (%) 10.71% 8.02% 8.65%
Depreciation & Amortisation 8 7 18
EBIT 50 117 158
Finance Cost 24 42 62
PBT 26 76 95
Tax 5 21 23
PAT 21 55 72
NPM (%) 3.83% 3.55% 3.56%
No.of Shares 78.19 78.19 78.19
EPS 0.26 0.70 0.92

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Kizi Apparels Limited 20 1 0.92 22.7 21 16
Thomas Scott (India) Limited 91 10 10.23 28.8 270 289
Bizotic Commercial Limited 71 3 3.83 12.8 49 39
* All the data is as per FY24.

Recommendation on Kizi Apparels Limited IPO:

1. Kizi Apparels Limited operates through multiple channels, including showrooms, distributors, malls, and an online platform. The company prides itself on offering premium quality products that meet market demands, achieved through meticulous market research and strategic collaborations with leading brands. 2. The launch of their own brands, “ANUTARRA” for women's ethnic wear and “KIZI” for women's western wear, marked their foray into brand creation and direct consumer engagement. These brands have gained significant traction, contributing to substantial sales growth and market penetration. 3. Operations and Business Model Kizi Apparels operates across five core sectors, ensuring a diversified and robust business model: i. B2B (White Label)                                     ii. B2B (Their Own Brand) iii. Job Work (Cut to Pack)                         iv. Value Addition to Semi-Finished Goods v. D2C (Direct-to-Consumer) 4. Product Range Kizi Apparels recognizes the diverse preferences of women in clothing and styling. Their product portfolio is divided into two main categories: i. Ethnic Wear (ANUTARRA)                  ii. Western Wear (KIZI) 5. Competitive Landscape Operating in a highly competitive industry, Kizi Apparels continuously evaluates its market position and strategizes accordingly: i. Competitor Analysis:- Regular research to identify key competitors and market trends, informing our strategic decisions. ii. Differentiation:- Emphasizing innovation, sustainability, and unique value propositions to stand out in the market. iii. Continuous Improvement:- Adopting a proactive approach to customer feedback and industry advancements to remain agile and competitive. 6. The Revenue has Increased from Rs.5 Crores in FY22 to Rs.20 Crores in FY24. 7. The EBITDA has Increased from 58 Lakhs in FY22 to 1.7 Crores in FY24. 8. The PAT has Increased from 21 Lakhs in FY22 to 72 Lakhs in FY24. 9. As per FY24, CFO/EBITDA is 0.28, and EPS is 0.92, 10. Market Capitalization is 16 Crores and P/E is 22.7x based on FY24.

Lead Manager of Kizi Apparels Limited IPO:

  1. Interactive Financial Services

Registrar of Kizi Apparels Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Kizi Apparels Limited H-629, Phase- II, Sitapura Industrial Area, Sanganer, Jaipur, 302022 Phone: +91 99830 23939 Email: info@kiziapparels.com Website: https://kiziapparels.co.in/

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