Credo Brands Marketing Ltd IPO

If you are interested in investing in the men’s casual wear market, there is good news for you. Credo Brands Marketing Pvt Ltd has recently filed a Draft Red Herring Prospectus (DRHP) with SEBI seeking permission to launch its IPO. This company is the owner of ‘Mufti’, a leading Indian men’s casual wear brand.

With its country-wide presence, vast product portfolio and India’s expanding online retail market, Mufti poses an attractive investment opportunity for those willing to capitalise on this sector’s prospects. Keep reading this blog to get a detailed insight on the Credo Brands Marketing Pvt Ltd IPO.

Also Read: Benefits of Investing in IPO

About Credo Brands Marketing Ltd

Mufti by Credo Brands Marketing Private Limited is one of the biggest premium and mid-premium men’s casual wear brands. Its products consist of year-round clothing like t-shirts, jeans, chinos, etc., designed for a youthful look while keeping up with the latest fashion trends. 

This brand was launched 25 years ago by Kamal Khushlani. His vision was to make an apparel line which was creative, bold and expressive, serving as an alternative dressing solution for the contemporary Indian man.

To keep up with fashion trends, Mufti has been constantly expanding its product offerings over the years. It now offers blazers, sweaters, sweatshirts, cargos, authentic daily casuals, urban casuals, athleisure and partywear.

Furthermore, to ensure the proper marketing of its brand, Mukti advertises its products via various channels like multi-brand outlets (MBOs), exclusive brand outlets (EBOs) and large format stores (LFSs).

Credo Brands Marketing Ltd IPO Details

The Credo Brands Marketing Pvt Ltd IPO is entirely an offer for sale of 19,634,960 equity shares by promoters and selling shareholders. It consists of 30.54% of the company’s post-offer paid-up equity share capital with a face value of Rs. 2 for each share. 

The participants of this OFS include Poonam Khushlani, Sonakshi Khushlani, Kamal Khushlani, Concept Communication Ltd, Andrew Khushlani, Sagar Milan Mehta, Jay Milan Mehta and Bela Properties Private Ltd. 

For Credo Brands’ public offering, DAM Capital Advisors Limited, ICICI Securities Limited and Keynote Financial Services Limited are serving as the book-running lead managers. Additionally, Link Intime India Private Limited is acting as the registrar for this offer.  

As of now, the company is yet to declare tentative dates for its IPO, namely – bid opening and closing, listing and share allotment. It may announce these details once it gets approval to float an IPO from SEBI.

Also Read: How To Apply For An IPO?

Credo Brands Marketing Ltd IPO Objectives

With the funds from its public issue, Credo Brands Marketing plans to expand its domestic store network to cities with emerging markets. Additionally, to increase its brand appeal, the company is planning to launch marketing campaigns across multiple channels like social and digital media, live events, video platforms, display advertising and more.

The company aims to leverage India’s growing retail e-commerce market by growing its sales via online channels. Apart from this, Mufti is planning on expanding its product lineup. Its team is currently considering designing a line of caps, socks and shoes, which will complement its current offerings. This move will allow the company to make an all-rounder men’s lifestyle brand.

Credo Brands Marketing Private Limited also intends to invest in its IT infrastructure. It will enable the company to improve its operational efficiency, streamline its supply chain and enhance overall customer experience.  

Strengths

Before investing in any IPO, knowing the strengths and weaknesses of the company is a must. Here are the strengths of Credo Brands Marketing Limited:

• Strong brand presence with a multi-channel distribution network all across India
• Vast product lineup spreading across several categories
• Asset light model which is scalable as per market demand.
• Innovative and high-quality products thanks to its strong in-house designing capabilities
• Technology=powered supply chain to improve operational efficiency
• A strong business model capable of delivering consistent profits. For instance, between 2021 and 2023, its gross profit margin increased from Rs. 119.787 crore to Rs. 286.242 crore.
• Presence of an experienced management team to drive the company’s future growth

Risks

Here are the main risks of investing in Credo Brands Marketing Ltd:

• Variations in market demand and changes in consumer preference can adversely affect operations and profitability. 
• An inability to properly market its products or a fall in its brand’s reputation can result in losses. 
• Failing to grow its business in emerging markets can result in operational and financial loss. 
• Credo Brands outsources its manufacturing process to third parties. Thus, any failure on their part can affect the company’s reputation and operation.  

Also Read: Risk of investing in IPO

Conclusion

Credo Brands Marketing Pvt Ltd has submitted its DRHP to SEBI; now,  the latter will take some time to analyse the company’s details before giving it a thumbs-up. After receiving approval, the company will release all the tentative IPO dates. 

So, if you wish to invest in the Credo Brands Marketing Pvt Ltd IPO, why not go through our website? You will find additional details to help you make an informed decision. 

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