Credo Brands IPO fully subscribed: GMP, subscription status, review, other details. Should you apply?

  • Credo Brands IPO IPO: Shares of the apparel brand are available at a premium of 126 in grey market today, say market observers

Asit Manohar
Updated19 Dec 2023, 02:35 PM IST
Credo Brands IPO price: The apparel company has fixed Credo Brands IPO price band at  <span class='webrupee'>₹</span>266 to  <span class='webrupee'>₹</span>280 per equity share.
Credo Brands IPO price: The apparel company has fixed Credo Brands IPO price band at ₹266 to ₹280 per equity share.(Photo: Courtesy company website)

Credo Brands Marketing IPO: The initial public offering (IPO) of Credo Brands Marketing Limited has opened today and it will remain open till 21st December 2023 i.e. till Thursaday this week. This means, Credo Brands IPO date of subscription will remain open from Tuesday to Thursday this week. The apparel company has fixed Credo Brands IPO price band at 266 to 280 per equity share. It aims to raise 549.78 crore from its initial offer. The public issue is proposed for listing on BSE and NSE.

Meanwhile, shares of Credo Brands Marketing Ltd are available for trade in unlisted market. According to stock market observers, Credo Brands Marketing shares are available at a premium of 126 in grey market today.

Credo Brands IPO subscription status

By 2:27 PM on day one of bidding, the public issue has been subscribed 1.19 times whereas its retail portion has been subscribed 2.0 times. The NII portion of the public issue has been subscribed 0.89 times.

IPOs today: 6 mainboard IPOs worth over 3,100 crore open for subscription

Important Credo Brands Marketing IPO details

Here we list out important Credo Brands Marketing IPO details:

1] Credo Brands IPO GMP: Shares of the company are available at a premium of 126 in grey market today, say market observers.

2] Credo Brands IPO price: The apparel company has fixed Credo Brands IPO price band at 266 to 280 per equity share.

3] Credo Brands IPO date: The public offer has opened today and it will remain open till 21st December 2023 i.e. till Thursday this week.

Also Read: DOMS IPO allotment declared: GMP, how to check application status online

4] Credo Brands IPO size: The company aims to raise 549.78 crore from this public issue out of which is completely OFS (offer for sale) in nature.

5] Credo Brands IPO lot size: A bidder will be able to apply in lots and one lot of the IPO comprises 53 company shares.

6] Credo Brands IPO allotment date: In the wake of T+3 listing rule, most likely date for share allocation is 22nd December 2023.

7] Credo Brands IPO registrar: Link Intime India Private Limited has been appointed as official registrar of the public offer.

Also Read: Planning to subscribe to Motisons Jewellers IPO? Know the key risks involved

8] Credo Brands IPO listing: The public issue is proposed for listing on BSE and NSE.

9] Credo Brands IPO listing date: The likely date for share listing is 27th December 2023.

Credo Brands IPO: Apply or not?

10] Credo Brands IPO review: Giving 'subscribe' tag to the public issue, Arun Kejriwal, Founder at Kejriwal Research and Investment Services said, "Inclusing its brand outlet and franchise outlets, Credo Brands Marketing Limited has around 1800 outlets. The mens wear company is a profit making company. In FY23, the company has registered around 43.50 per cent revenue growth whereas its PAT grew by around 17 per cent. Its valuations are also attractive. so, an investor can apply for the puiblic issue as per its time horizon as it is expected to list at handsome premium and may witness buying interest post-listing. So, those who have long term perspective, can hold the scrip even after positive debut of Credo Brands Marketing shares."

Highlighting the fundamentals of Credo Brands Marketing Limited, Dhruv Mudaraddi, Research Analyst at Stoxbox said, "The men's apparel market in India is projected to be Rs. 2.2 lakh crores in FY23 and has grown at a CAGR of 9.6% from FY15-20. It is anticipated to post strong growth rate of 18% CAGR to reach Rs. 4.3 lakh crores by FY27 which sets the stage for a dynamic landscape within which Credo Brands Marketing emerges as a noteworthy player, showcasing a distinctive blend of strengths. The company's qualitative advantages include a strong brand equity spanning a diverse product range, safeguarding against business model risks."

Stoxbox expert went on to add that MUFTI demonstrates flexibility for expansion with minimal capital investments. The brand's unwavering presence as a trendsetter in men's fashion and strong in-house design competencies establish formidable entry barriers. Financially, MUFTI has reported an impressive CAGR of around 42% between FY21 and 23, with net profits doubling over the previous year and showing multifold increase compared to FY21.

Giving 'subscribe' tag to Credo brands IPO, Dhruv Mudaraddi of Stoxbox said, "While the boost in profitability is positive, projecting the June quarter profit figures for FY24 indicates a significant potential shortfall compared to earlier performance. Anticipating a seasonal upswing in the upcoming quarters due to the winter sale of items like jackets and sweaters, it is premature to make definitive remarks about the overall financial performance for FY24. However, the surge in FY23 has translated into marked improvement in net profit margins (15.5% in FY23) and ROE (30% in FY23). The company operates in a segment where the margins are stable, and that is evident in the robust growth in the ROE and net margins in the last two years, underlining the strength of its brand and effective product positioning. Turning to valuation, the IPO offers a competitive P/E ratio of 23.2x times based on FY23 EPS, reflecting reasonable pricing, especially considering the impressive earnings growth rate and an industry average P/E of 95.2x. We, therefore, recommend investors to "SUBSCRIBE" for listing gains to the issue."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.:Credo 

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First Published:19 Dec 2023, 02:35 PM IST
HomeMarketsIPOCredo Brands IPO fully subscribed: GMP, subscription status, review, other details. Should you apply?

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