SD Retail Limited IPO

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The company, operating under the brand name “SWEET DREAMS,” is a leading player in the sleepwear industry, dedicated to designing, manufacturing, outsourcing, marketing, and retailing a diverse range of sleepwear products. Established in 2004 as “S D Retail Private Limited,” we have grown to become a trusted name in the Indian apparel market, particularly in the niche segment of stylish and comfortable sleepwear.

SWEET DREAMS is a sleepwear-centric brand that caters to the entire family, offering a comprehensive range of sleepwear that blends comfort, style, and functionality. Their brand is positioned uniquely in the apparel industry, focusing on the habitual wear patterns of their customers, where their sleepwear is a daily essential, worn during similar time ranges. The brand primarily targets the modern Indian woman, who is the most engaged with this category across various retail channels. Additionally, they offer sleepwear for men and children, recognizing that women often influence the purchasing decisions for these categories within households.

Their extensive portfolio includes a variety of sleepwear products such as Pyjamas, Night Sets, Nighties, and T-shirts. They design their products to cater to a wide demographic, including men, women, and children (ages 2 to 16 years), ensuring a range of fits suitable for various body types and physiques. Beyond sleepwear, they have expanded into adjacent categories, including loungewear, workout wear, athleisure, and work leisure pants, thereby catering to every aspect of their customers’ downtime.

Product Lines and Market Strategy

They achieve varied price points through our two distinct product lines: Essentials and Fashion.
i. Essentials Line: This product line is characterized by timeless designs with limited prints or patterns, making it relatively insulated from changing fashion trends. The Essentials line features lower average selling prices (ASPs), encourages high repeat purchases, and is sold year-round. This line caters to customers seeking reliable, everyday sleepwear that prioritizes comfort and affordability.
ii. Fashion Line: Their Fashion product line is defined by seasonal designs that align with current trends, resulting in lower repeat purchases but higher ASPs. This line is sold seasonally, focusing on the Autumn/Winter and Summer seasons, appealing to customers looking for trendy, fashionable sleepwear that reflects the latest styles.

Market Positioning and Future Outlook

SWEET DREAMS occupies a unique position in the Indian sleepwear market by offering a blend of comfort, style, and functionality. Their focus on the modern Indian woman, coupled with their diverse product range and strategic pricing, has enabled them to build a loyal customer base. As they continue to expand their presence in the sleepwear and adjacent categories, they remain committed to delivering high-quality products that meet the evolving needs of their customers.

Looking ahead, they aim to strengthen their brand presence across India, leveraging their established manufacturing capabilities and expanding their product lines to capture new market opportunities. Their dual focus on Essentials and Fashion ensures that they cater to a broad spectrum of customer preferences, positioning SWEET DREAMS as a leading brand in the Indian sleepwear market.

Objects of the SD Retail Limited IPO:

The company intend to utilize the net proceeds of the Issue to meet the following objectives: - i. Capital expenditure to be incurred by the Company for setting up new exclusive brand outlets (“EBOs”) ii. Funding Working Capital Requirement iii. General Corporate Purpose.

SD Retail Limited IPO Details:

Open Date: Sep 20 2024
Close Date: Sep 24 2024
Total Shares: 4,960,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 64.98 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 124 - 131 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 27 2024

Promoters And Management:

Mr. Hitesh Pravinchandra Ruparelia, 58, is the Chairman & Managing Director, and Promoter of the Company. Appointed to the Board on May 14, 2004, and designated as Chairman and Managing Director from June 20, 2024, he co-founded S D Retail Ltd, a leading company in the retail industry since 1989. With a background in Higher Secondary education and a Diploma in Computer Technology, Mr. Ruparelia has been pivotal in major policy decisions. His leadership, marked by a blend of traditional wisdom and awareness of market trends, has driven the company's innovation and success. Mr. Utpalbhai Pravinchandra Ruparelia, 52, is the Whole-Time Director and founding Promoter of the Company. He joined the Board on May 14, 2004, and was reappointed as Whole-Time Director on June 20, 2024. As a co-founder of S D Retail Ltd, established in 1989, he has played a key role in expanding the company's product portfolio, focusing on relaxation, comfort, and innovation. His leadership has been crucial in maintaining the company’s reputation for quality, introducing products that blend comfort and style to meet the evolving needs of modern consumers. Mr. Vishesh Jailesh Dalal, 34, is the Nominee Director of the Company, appointed to the Board on October 1, 2022. He is a Chartered Accountant with an MBA from Esade Business School and brings over 13 years of experience in private equity, consulting, and entrepreneurship. His expertise covers the full investment lifecycle, with a focus on creating shareholder value. His prior roles include private equity investing with the Clermont Group in Southeast Asia and the US, consulting and investment banking at Ernst & Young (EY), and operating an e-commerce start-up in India.

Financials of SD Retail Limited IPO:

To be updated shortly.

Comparison With Peers:

To be updated shortly.

Recommendation on SD Retail Limited IPO:

To be updated shortly.

Lead Manager of SD Retail Limited IPO:

  1. Beeline Broking Limited

Registrar of SD Retail Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

SD Retail Limited C-929, Stratum at Venus ground, Nr. Jhansi Ki Rani Statue, Nehrunagar Ambawadi, Ahmedabad -380006, Phone: +91 7043106787 Email: info@sweetdreamsindia.com Website: https://www.sweetdreams.in/

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