Flat Listing: Mufti Menswear lists at Rs. 280 per share on the BSE

Credo Brands Marketing Limited sells men’s casual clothing under its flagship brand “Mufti”, debuted on the Indian stock market today.

On its debut on the BSE, the stock opened at Rs 282 per share, almost flat compared to the final issue price of Rs 280 per share. Meanwhile, on the NSE, the stock debuted at Rs 282.35 per share, also reflecting a nearly flat opening compared to its final issue price.

At present, the stock is trading at Rs 279.35 per share on the BSE, having reached intraday highs and lows of Rs 284.75 and Rs 262.05, respectively. The current market capitalisation of the company stands at Rs 1,796 crore.

IPO Proceeds:

The IPO proceeds will not be received by the company since it is an offer for sale, and all the proceeds will be received by the selling shareholders.

Company profile:

Credo Brands Marketing Limited sells men’s casual clothing under its flagship brand “Mufti”. The company was incorporated in 1999. Originally, in 1998, the company’s product line comprised solely shirts, T-shirts, and trousers. Presently, however, the company offers an extensive array of products, encompassing sweatshirts, jeans, cargos, chinos, jackets, blazers, and sweaters. These items cater to various categories such as relaxed casual wear for vacations, authentic everyday wear, urban casual wear, party wear, and athleisure.

The company presently manages 1,773 retail outlets across India (as of May 31, 2023), encompassing 379 exclusive brand stores (EBOs), 89 large format stores (LFSs), and 1,305 multi-brand stores (MBOs). Its market presence spans from major metropolitan areas to Tier 3 cities. As of March 31, 2023, March the company has established its footprint in 598 cities.

Subscription details: 

On December 21, 2023, the final day of the IPO window, the IPO witnessed an impressive response, especially compared to other recently-listed IPOs, with a subscription rate of 51.85 times. The public issue received remarkable interest, with the retail category being subscribed 19.94 times, the QIB category achieving a subscription rate of 104.95 times, and the NII category reaching a subscription rate of 55.52 times.

The company attracted Rs 164.93 crore from various anchor investors by allocating 58.90 lakh equity shares at Rs 280 per share. The complete lock-in period for these anchor investors ends on April 29, 2024.

The IPO price range was set between Rs 266 and Rs 280, with a face value of Rs 2 per share and a lot size of 53 shares. The total size of the company’s IPO was Rs 549.78 crore, and the final share issue price was fixed at Rs 280 each.

Financial Performance:

Conclusion:

The key dilemma for investors lies in whether to hold onto their shares. Those who applied for the IPO with the sole intention of capitalising on listing gains have been disappointed due to the flat listing and may consider closing their positions. Conversely, investors with a higher risk tolerance might opt to hold onto their shares for the medium to long term, as this strategy could potentially yield benefits over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.