Mafia Trends SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 22 Sep 2022 – 27 Sep 2022
- Listing date
- 06 Oct 2022
- Face value
- ₹10 per share
- Issue price
- ₹28 per share
- Lot size
- 4,000 shares
- Total issue size
- ₹3.60 Cr
- Market cap at offer price
- ₹12.41 Cr
- Promoter holding
- 87.42% → 62.11% pre-issue → post-issue
- ISIN
- INE0KQQ01011
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- 1, Prabhu Kutir Complex, Sandesh Press Road, Vastrapur, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 68,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹28
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,12,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,24,000 |
| S-HNI (max) | 8 | 32,000 | ₹8,96,000 |
| B-HNI (min) | 9 | 36,000 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 13.09 | — |
| P/E (×) | 2.14 | — |
| Market cap | — | ₹12.41 Cr |
Key performance indicators
- Return on net worth
- 23.95%
- PAT margin
- 11.43%
- EBITDA margin
- 15.98%
- NAV per share
- ₹48.80
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Mafia Trends SME
Mafia Trends Limited, incorporated on February 7, 2017, is a fashion retail company that markets and sells men's and kids fashion products through a chain of clothing stores. The company started operations in 2011 with its first store 'Mafia Western Outfit' in Ahmedabad and currently operates 8 stores spread across 3 cities with one warehouse in Ahmedabad. The company targets young students, transitioning class, and middle-income groups seeking affordable fashionable outfits through a 'Value Retail' concept. The company makes money by selling apparel products through its physical retail stores in small Indian towns and cities, primarily in Gujarat.
Company Analysis
from RHPMafia Trends Limited is a men's and kids fashion retailer operating clothing stores under the 'Mafia' brand, selling jeans, t-shirts, shirts, chinos, and formal wear across tier-2 and tier-3 Indian cities.
Mafia Trends Limited, incorporated on February 7, 2017, is a fashion retail company that markets and sells men's and kids fashion products through a chain of clothing stores. The company started operations in 2011 with its first store 'Mafia Western Outfit' in Ahmedabad and currently operates 8 stores spread across 3 cities with one warehouse in Ahmedabad. The company targets young students, transitioning class, and middle-income groups seeking affordable fashionable outfits through a 'Value Retail' concept. The company makes money by selling apparel products through its physical retail stores in small Indian towns and cities, primarily in Gujarat.
Objects of the Issue
- Funding of working capital requirements ₹305.52 lacs p.14
- Issue Expenses ₹54.00 lacs p.14
- Funding the working capital requirements of the company ₹305.52 lakhs p.50
Issue Structure
- Total Issue
- ₹359.52 lacs (12,84,000 Equity Shares)
- Fresh Issue
- 12,84,000 Equity Shares aggregating to ₹359.52 lacs
- Offer for Sale
- This is a fresh issue of Equity Shares by the Company and does not have an offer for sale portion.
- Price Band
- Fixed price of ₹28 per Equity Share
- Lot Size
- Market lot and Trading lot for the Equity Share is 4,000 and in multiples of 4,000 thereafter; subject to a minimum allotment of 4,000 Equity Shares
- Face Value
- ₹10 per Equity Share
Business Model
The company operates a retail business model, selling men's and kids fashion apparel (jeans, t-shirts, shirts, chinos, formal trousers, formal shirts) through physical clothing stores under the 'Mafia' brand. Revenue is generated from direct sales at retail outlets. The company procures products from third-party manufacturers and sells through its chain of stores.
Business Segments
SWOT Analysis
- • Targeting untapped tier-2 & tier-3 cities with 'Value Retail' positioning(p.73)
- • Diversified multi-supplier procurement network reducing vendor bargaining power(p.73)
- • ERP-backed supply chain enabling inventory optimization and reduced shrinkage(p.74)
- • Strong promoter experience of 30+ man-years in fashion industry(p.74)
- • Strong financial performance with 229% EBITDA CAGR (FY20-FY22)(p.72)
- • Experienced management with 12 years of industry expertise(p.92)
- • Established brand presence across multiple cities(p.140)
- • Strong technology infrastructure for supply chain management(p.140)
- • Strong sourcing capability with efficient logistics network(p.140)
- • Healthy profit margins and significant revenue growth(p.140)
- • No investor complaints in three years preceding prospectus filing(p.159)
- • Established investor grievance redressal infrastructure with Compliance Officer designated(p.159)
- • Stakeholders Relationship Committee constituted for investor protection(p.159)
- • Rapid grievance resolution target of 15 working days(p.159)
- • 100% underwritten issue reducing subscription risk(p.162)
- • Committed defaults in loan repayment(p.20)
- • Dependence on single warehouse location(p.20)
- • Unformalized lease agreements for two retail stores(p.22)
- • Reliance on promoter personal guarantees(p.22)
- • High outstanding trade receivables(p.21)
- • Incomplete RoC statutory filings(p.23)
- • Outstanding criminal litigation against promoters(p.21)
- • High concentration with top promoters holding 95.54% pre-issue shareholding(p.46)
- • Small scale operations with only 8 stores across 3 cities(p.72)
- • Limited track record with company incorporation in 2017 and operations from 2011(p.72)
- • Nominal long-term debt to equity but reducing, indicating limited financial leverage(p.73)
- • All store properties are on rent with no owned real estate(p.83)
- • High dependency on key personnel and promoters for business management(p.140)
- • Dependence on third-party logistics and transportation(p.141)
- • Vulnerability to market trend identification mismatches(p.141)
- • Criminal proceedings involving promoters related to counterfeit goods(p.150)
- • Outstanding material creditor dues and significant trade payables(p.151)
- • Mandatory 2-year minimum listing on SME platform before main board migration(p.163)
- • Small post-issue paid-up capital (≤₹10 crores) limits migration eligibility(p.163)
- • Compulsory market-making obligations increase listing costs(p.164)
- • Dematerialized form only requirement may exclude certain investors(p.161)
- • Expansion into tier-2 and tier-3 cities(p.14)
- • Geographic expansion across India(p.20)
- • Strong Indian economic recovery(p.14)
- • International market expansion(p.23)
- • Value retail positioning in untapped markets(p.14)
- • Indian retail market projected to grow at 9% CAGR to $1.8 trillion by 2030(p.66)
- • Organized retail penetration expected to grow from 12% to 18% by 2025(p.67)
- • Regional cluster-based expansion strategy enabling cost-efficient logistics and marketing(p.75)
- • Apparel category demand growing at 40-45% with increasing preference for stitched western outfits(p.68)
- • Rising FDI into Indian retail sector with $6.2 billion invested in 2020(p.70)
- • Expansion into tier-2 and tier-3 cities with limited brand penetration(p.140)
- • Growing middle-income consumer segment in affordable fashion(p.140)
- • Niche positioning in men's and kids fashion retail(p.140)
- • Brand expansion through marketing and promotional activities(p.140)
- • Pathway for main board listing and expanded market access after 2 years(p.163)
- • Access to public capital markets for growth and expansion(p.165)
- • Retail investor participation through multiple application channels(p.175)
- • Market maker provisions ensure liquidity support for three years(p.164)
- • COVID-19 pandemic impact on garment industry(p.19)
- • Seasonal business concentration in second half(p.21)
- • Intense competition from organized and unorganized players(p.23)
- • Dependence on third-party manufacturers(p.21)
- • Dependence on third-party transportation(p.22)
- • Restrictive loan covenants limiting expansion(p.23)
- • Fashion trends and consumer preference changes(p.20)
- • Regulatory and tax law uncertainty(p.29)
- • Intense competition from organized and unorganized retail in tier-2/3 cities(p.80)
- • E-commerce expanding at 25-30% p.a., expected to reach $120-140 billion by FY26(p.67)
- • COVID-19 pandemic causing store closure and customer/employee infection risks(p.80)
- • Fashion industry dependency on seasonal trends and consumer preference volatility(p.78)
- • Supply chain disruptions and commodity price volatility impacting procurement costs(p.59)
- • Intense competition from organized and unorganized retailers(p.146)
- • Price competition as primary decision factor in purchasing(p.141)
- • Low barriers to entry enabling new competitors(p.141)
- • Dependence on logistics disruption risks and transportation costs(p.141)
- • COVID-19 pandemic impact on retail operations(p.141)
- • Minimum 50 allottees requirement creates execution risk if threshold not met(p.162)
- • SME platform liquidity and valuation risk with small trading lot minimum(p.162)
- • Listing approval dependency on stock exchange final approval after allotment(p.162)
- • Foreign investor restrictions and FPI holding caps limit investor base(p.173)
- • Regulatory compliance burden with multiple SEBI circular compliance requirements(p.161)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Rajendra Singh Rajpurohit | Promoter | 7.14% | — |
| Mahendra Singh Rajpurohit | Promoter | 77.63% | — |
| Rajendra Singh Rajpurohit | Promoter | 7.14% | 3.95% |
| Mahendra Singh Rajpurohit | Promoter | 77.61% | 55.13% |
| Abita Kanwar | Promoter Group | 0.89% | — |
| Punam Rajpurohit | Promoter Group | 0.89% | — |
| Navratan Rajpurohit | Promoter Group | 0.89% | — |
| Rajendra Singh Rajpurohit | Promoter | 7.14% | — |
| Mahendra Singh Rajpurohit | Promoter | 77.61% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.