Credo Brands IPO: Retail Portion Booked 17.14 Times, QIB 50.67 Times

The initial public offer (IPO) by Credo Brands Marketing, the parent firm of the Mufti Menswear brand, commenced on December 19, 2023, and will conclude on December 21, 2023.

Company Details

Established in 1999, Credo Brands Marketing Limited introduced its flagship brand “Mufti,” offering casual men’s clothing.

The company’s product line encompassed shirts, T-shirts, and trousers. It has a diverse array of products, including sweatshirts, jeans, cargos, chinos, jackets, blazers, and sweaters. These offerings span various categories such as relaxed vacation wear, authentic daily attire, urban casual wear, party outfits, and athleisure.

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As of May 31, 2023, the company operates 1,773 retail outlets across India. Among these are 379 exclusive brand stores (EBOs), 89 large format stores (LFSs), and 1,305 multi-brand stores (MBOs).

Subscription Details

Until 3:05 PM, investors had oversubscribed the issue by 32.74 times, seeking 45 crore shares against the available 1.37 crore shares. In the retail portion, 68.72 lakh shares were sought against the available allocation, oversubscribing it by 17.14 times.

The Non-Institutional Investors (NIIs) portion was subscribed 45.23 times, while the Qualified Institutional Buyers (QIBs) portion was oversubscribed by 50.67 times.

Price Band & Face Value

On the eve of the IPO opening, Credo Brands Marketing secured approximately Rs 165 crore from notable anchor investors. In its filing with the exchanges, the Mumbai-based company disclosed the allocation of 58,90,488 equity shares to anchor investors at Rs 280 per equity share.

Credo Brands confirmed that among the total allocation to anchor investors, 24,99,167 shares were allotted to three domestic mutual funds. The offering comprises an offer for sale of up to 1,96,34,960 equity shares. Each share, with a face value of Rs 2, falls within the price band of Rs 260 to Rs 280.

IPO Allocation

Credo Brands Marketing has stipulated that the offer allocation will distribute a maximum of 50 percent to Qualified Institutional Buyers (QIBs). Non-Institutional Bidders (NIBs) will receive a minimum allocation of 15 percent, while retail individual bidders will get a minimum of 35 percent.

Bidding Details

Investors can bid for a minimum of 53 equity shares and in multiples of 53 shares thereafter. Consequently, retail investors will require a minimum investment of Rs 14,840 to participate.

Anchor book of the IPO

Integrated Core Strategies, Morgan Stanley Asia (Singapore), Nippon Life India, HSBC Mutual Fund, Aditya Birla Sun Life Insurance, Kotak Mahindra Life Insurance, Bajaj Allianz Life Insurance, SBI General Insurance Company, JM Financial Mutual Fund, Reliance General Insurance Company, and Subhkam Ventures.

Book Running Lead Managers

DAM Capital Advisors, ICICI Securities, and Keynote Financial Services are serving as the book-running lead managers for the issue.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.