TCNS Clothing IPO

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(i)TCNS Clothing Co. Private Limited is India’s leading women’s branded apparel company in terms of a total number of exclusive brand outlets as of November 2017, according to Technopak.

(ii) They Design, Manufacture, Market and Retail a wide portfolio of women’s branded apparel across multiple brands. They sell products through 418 exclusive brand outlets, 1,305 large format store outlets and 1,361 multi-brand outlets, located in 29 states and two union territories in India. In addition to that they also have six exclusive brand outlets in Nepal, Mauritius and Sri Lanka. The company also sell the products through their own website and online retailers.

(iii)The product portfolio includes Top-wear, Bottom-wear, Drapes, Combination-sets and Accessories that cater to a wide variety of the wardrobe requirements of the Indian woman, including every-day wear, casual wear, work wear and occasion wear. The TOP brand in the portfolio is mentioned below:

a). Brand “W”:  “W” is a premium fusion wear brand, which merges Indian and western sensibilities with an emphasis on distinctive design and styling. This brand is targeted primarily at the modern Indian woman’s work and casual wear requirements. “W” has been recognized as the ‘IMAGES Most Admired Fashion Brand of the Year:  by India Fashion Forum consecutively for past three years between 2015 to 2017.  “W” had 258 exclusive brand outlets and 676 large format store outlets located across 148 cities in India and five outlets outside India.

b). Brand “Aurelia”: Aurelia is a contemporary ethnic wear brand targeted at women looking for great design, fit and quality for their casual and work wear requirements.  “Aurelia” had 159 exclusive brand outlets and 629 large format store outlets located across 149 cities in India and one outlet outside India.

c) Brand “Wishful”. Wishful is a premium occasion wear brand, with elegant designs catering to women’s apparel requirements for evening wear and occasions such as weddings, events and festivals. The Company is leveraging their “W” store network for selling Wishful products, however, they recently launched first exclusive brand outlet for Wishful, in September 2017.

iv) Revenue from sales of products under brand “W”, “Aurelia” & “Wishfulgrew” is growing at a CAGR of 48.67%,70.82% & 66.66% respectively during FY13 to FY17 . Moreover, in FY17 the revenue from “W”, “Aurelia” &  “Wishfulgrew” accounted for 61.23%,30.35% & 8.41% respectively.

 

TCNS Clothing IPO Stock Quote & Charts

604.80

+0.89%

  • Open: 617.55
  • High - Low: 618.00 - 602.00
  • Previous Close: 599.45
  • Total Traded Volume: 12801
  • Updated On: 24-Dec-2019

Objects of the TCNS Clothing IPO:

Objective of

TCNS Clothing IPO

are: It is a pure OFS by the sale of up to 15,714,038 Equity Shares by the Selling Shareholders. The Company will not receive any proceeds from the Offer and all the proceeds will go to the Selling Shareholders.

TCNS Clothing IPO Details:

Current GMP: 48-50
Open Date: Jul 18 2018
Close Date: Jul 20 2018
Total Shares: 15,714,038
Face Value: ₹ 2 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 1125 Cr.
Lot Size: 20 Shares
Issue Price: ₹ 714-716 Per Equity Share
Listing At: NSE,BSE
Listing Date: Jul 30 2018

Promoters And Management:

Promoters of TCNS Clothing Co. Private Limited Company are: (i) Onkar Singh Pasricha, aged 67 years, is the Chairman, Executive Director and one of the Promoter of the company. He holds a bachelor’s degree in technology in electrical engineering from Indian Institute of Technology, Delhi. He has more than 40 years of experience in the apparel industry. (ii) Anant Kumar Daga, aged 40 years, is the Managing Director of the Company. He holds a bachelor’s degree in commerce from the University of Calcutta and a post-graduate diploma in management from Indian Institute of Management, Ahmedabad.  Prior to joining, Anant Kumar Daga has worked with Reebok, India as director (sales) and with ICICI bank. He also features in the Economic Times' 40 under 40 124 list of India’s hottest business leaders for 2017 and has been awarded the “Brand Professional of the Year Award” at the CMAI Apex Awards 2017.

Capital Structure:

(i) Authorized Share Capital 180,000,000 Equity Shares & 20,000,000 Preference Shares 38 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue 61,318,124 Equity Shares 12.26 Cr
(iii) Present Issue OFS to public 15,714,038 Equity Shares 25% of Paid up capital
(iv) Reservation for QIB  (7857019 Equity Shares at FV@2) 50%
(v) Reservation for HNI  (2357105 Equity hares at FV@2) 15%
(vi) Reservation for Retail  (5499912 Equity Shares at FV@2) 35%
(vii) Paid Up Share Capital after the issue 12.26 Cr
 

Financials of TCNS Clothing IPO:

1. Assets and Liabilities Key Parameters
Year Asset(Cr) Liabilities(Cr) Net Worth(Cr) Book Value D/E [<1.5] RONW debtor days
FY14 160.9 77.66 83.24 16 0.93 10% 131
FY15 214.39 104.09 110.3 21 0.94 24% 79
FY16 308.7 260.4 48.3 11 5.39 -86% 48
FY17 425.8 143.9 281.9 51 0.51 6% 51
FY18 576.3 144.9 431.4 77 0.34 23% 60
2. Profit n Loss Key Parameters
Year Revenue(Cr) PAT(Cr) EBITDA Margins Profit Margins Outstanding Shares( Cr) EPS
FY14 170.00 8.70 13% 5% 5.188 1.7
FY15 301.00 26.20 17% 9% 5.188 5.1
FY16 488.10 -41.60 -3.8% -9% 4.562 -9.1
FY17 712.90 15.60 11% 2% 5.57 2.8
FY18 849.10 97.70 19% 12% 5.637 17.3
3. Cash Flow Statement(all figures in Cr)
Particulars FY18 FY17 FY16 FY15 FY14
(i) Net Cash Generated from Operation 41.33 25.10 34.429 14.07 8.03
(ii) Net Cash Generated from Investment -27.61 -27.06 -27.92 -14.491 -8.443
(iii) Net Cash Generated from Financing Activity 21.01 1.17 -4.55 0.71 -1.46
(iv) Total[ (i)+(ii)+(iii) ] 34.73 -0.79 1.97 0.29 -1.87
(v) Cash at the Start of the year 1.975 2.761 0.795 0.556 2.427
(vi) Cash at the end of the year 36.71 1.98 2.76 0.85 0.56
Key Notes: a) The Revenue is growing at CAGR of 49.49% from FY14 to FY18. b) The PAT is growing at CAGR of 83.06% from FY14 to FY18. The Company has excellent growth in PAT but have suffered losses in FY16. c) The Annualized EPS for FY17-18 is 17.3. d) P/E = 40.68 at Cutoff price of 716.[ Industry P/E is 67]. e) P/B= 9.29 at cutoff price of 716. f) The company is almost debt free. g) Mcap/Sales(ideally <2)= 5.49 on FY18 sales(Higher). h) The Company has clocked 19% EBITDA Margins in FY18 an improvement from 11% in FY17. i) The Company is continuously generating positive cash flows from operations in last 5 years- Big Positive. j) The Company has excellent RONW of 23% in FY18.

Comparison With Peers:

Name of the Company FV Mcap(cr) PAT(cr) Sales(cr) Mcap/Sales RONW P/E P/B NPM
TCNS Clothing Co. Limited 2 4660 97 849 5.49 22.74% 41 9.24 11%
Page Industries 10 31743 343 2573 12.34 40.95% 91 37.0 13%
Aditya Birla Fashion and Retail 10 10855 122 7214 1.50 10.78% 92 9.95 2%
Future Lifestyle Fashions 2 7785 128 4532 1.72 8.24% 60 4.98 3%
Kewal Kiran Clothing Limited 10 1700 74 483 3.52 18.33% 26 4.3 15%
Note: 1. The Value of P/E and P/B are calculated by considering Share price on 11.07.2018. 2. All the parameters are calculated on the basis of Financials as on FY18. 3. The Industry PE is at 67.

Recommendation on TCNS Clothing IPO:

TCNS Clothing IPO Rating by InvestorZone team => 5/10 1-5: Fair 5-7: Good 7-10: Excellent

Registrar of TCNS Clothing IPO:

  1. Karvy Computershare Private Limited

Company Address:

TCNS Clothing Co. Private Limited W-House, 119, Neelagagan Towers, Mandi Road, Sultanpur, Mehrauli, New Delhi 110 030, India Phone No. +91 11 4219 3193 Fax No. +91 11 4219 3194 E-mail: investors@tcnsclothing.com Website: www.wforwoman.com
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