Credo Brands Listing: What GMP signals ahead of debut on Wednesday
The issue was completely an offer for sale of 1.96 crore shares. Since the IPO is an OFS, the proceeds will entirely go to the selling shareholders and not the company.
By Akash Podishetti, ETMarkets.com | Updated:
Agencies
The shares of Credo Brands will be listed on the exchanges on Wednesday. Ahead of the debut, the company's shares traded at a premium of Rs 105 in the unlisted market.
Considering the upper price band of Rs 280, the stock is likely to list at a premium of 37%.
However, it is important to note that grey market premia are just an indicator as to how the company's shares are stacked up in the unlisted market and are subject to rapid changes.
The IPO of Credo Brands received a healthy response from investors with nearly 52 times subscription. The QIB portion of the IPO was booked 104 times, followed by NIIs at 55.52 times.
Credo Brands Marketing is one of the largest homegrown brands in the mid-premium and premium men's casual wear market in India in terms of market share in fiscal 2022.
As of May 31, the company has a presence across India with 1,773 touchpoints, including 379 EBOs (exclusive brand outlets), 89 large format stores, and 1,305 MBOs (multi-brand outlets), reaching major metros as well as Tier-3 cities. Their EBOs, located nationwide in high streets, malls, airports, and residential areas, provide a comprehensive shopping experience.
The issue was completely an offer for sale of 1.96 crore shares. Since the IPO is an OFS, the proceeds will entirely go to the selling shareholders and not the company.
In FY23, revenue from operations jumped 46% year-on-year (YoY) to Rs 498 crore, and profit increased to Rs 77.5 crore in the same period.
(Subscribe to ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Considering the upper price band of Rs 280, the stock is likely to list at a premium of 37%.
However, it is important to note that grey market premia are just an indicator as to how the company's shares are stacked up in the unlisted market and are subject to rapid changes.
The IPO of Credo Brands received a healthy response from investors with nearly 52 times subscription. The QIB portion of the IPO was booked 104 times, followed by NIIs at 55.52 times.
Credo Brands Marketing is one of the largest homegrown brands in the mid-premium and premium men's casual wear market in India in terms of market share in fiscal 2022.
ADVERTISEMENT
Led by Kamal Khushlani, Credo Brands operates the brand ‘Mufti’, which is now celebrating its 25th anniversary. It provides a wide array of wardrobe solutions, encompassing a range of products such as shirts, t-shirts, jeans, chinos, and more.As of May 31, the company has a presence across India with 1,773 touchpoints, including 379 EBOs (exclusive brand outlets), 89 large format stores, and 1,305 MBOs (multi-brand outlets), reaching major metros as well as Tier-3 cities. Their EBOs, located nationwide in high streets, malls, airports, and residential areas, provide a comprehensive shopping experience.
The issue was completely an offer for sale of 1.96 crore shares. Since the IPO is an OFS, the proceeds will entirely go to the selling shareholders and not the company.
In FY23, revenue from operations jumped 46% year-on-year (YoY) to Rs 498 crore, and profit increased to Rs 77.5 crore in the same period.
ADVERTISEMENT
DAM Capital, ICICI Securities and Keynote Financial Services acted as the book-running lead managers to the IPO and Link Intime India was the registrar to the offer.(Subscribe to ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
