Credo Brands Marketing IPO subscribed 51.85 times on Final Day
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The Initial Public Offering of Credo Brands Marketing Limited was subscribed 51.85 times on the final day of bidding.
The issue received bids of 71,27,01,600 shares against the offered 1,37,44,472 equity shares, at a price band of ?266-280, according to the data available on the stock exchanges.
Retail Portion was subscribed 19.94 times, Non-Institutional Investors Portion was subscribed 55.52 times, whereas Qualified Institutional Buyer Portion subscribed 104.95 times. The issue kicked off for subscription on Tuesday, December 19, 2023 and will close on Thursday, December 21, 2023.
A day prior to the opening of the issue, Credo Brands Marketing Ltd had raised Rs 165 crores from anchor investors.Foreign and Domestic Institutions who participated in the anchor were Integrated Core Strategies (Asia) Pte. Ltd., Morgan Stanley Asia (Singapore) Pte. ODI, Nippon India Small Cap, Aditya Birla SunLife Insurance, Kotak Mahindra Life Insurance, Bajaj Allianz Life Insurance, SBI General Insurance Company Ltd – FRSM, JM Financial Mutual Fund, Subhkam Ventures (I) Pvt. Ltd., and Reliance General Insurance.
Leading brokerages like Marwari Financial Services, HEM Securities and INDSEC Securities have given a “SUBSCRIBE” rating to the issue, They provide a wide range of products for multiple occasions in a customer’s life, with their product offerings ranging from shirts to t-shirts to jeans to chinos to jackets, which caters to all year-round clothing with a prominent focus on casual wear. Their products are designed to provide a youthful appearance while keeping up with the ongoing fashion trends.
Using their economies of scale they drive efficient partnerships from the back-end to front-end without a need to invest in developing manufacturing facilities. This structure provides them agility with their longstanding sourcing partners allowing them to increase or decrease their supply based on the demand from their various channels.
The company has grown at a two year CAGR of 43% with a Gross Margin in line with peers. The return ratios are also stronger with a working capital cycle in line with the segment they are catering to. The company is available at an attractive valuation.
DAM Capital Advisors Limited, ICICI Securities Limited and Keynote Financial Services Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer.
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