TCNS Clothing IPO
(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.
Objects of the TCNS Clothing IPO:
TCNS Clothing IPOare: 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:
|Open Date:||Jul 18 2018|
|Close Date:||Jul 20 2018|
|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 Date:||Jul 30 2018|
Promoters And Management:
|(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 as per DRHP:
|1. Assets and Liabilities Key Parameters|
|Year||Asset(Cr)||Liabilities(Cr)||Net Worth(Cr)||Book Value||D/E [<1.5]||RONW||debtor days|
|2. Profit n Loss Key Parameters|
|Year||Revenue(Cr)||PAT(Cr)||EBITDA Margins||Profit Margins||Outstanding Shares( Cr)||EPS|
|3. Cash Flow Statement(all figures in Cr)|
|(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|
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%|
|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%|