Credo Brands Marketing
Mainboard₹550 Cr issue
+0.71%
Listing gain over issue price
Issue size
₹550 Cr
1 lot at cut-off
₹14,840
Lot size
53shares
Open
19 Dec 2023
Close
21 Dec 2023
Allotment
22 Dec 2023
Listing
27 Dec 2023
Listing performance
Issue price
₹280
Listed at
₹282
Listing-day close
₹312.50
Latest price
₹63.57
Close on 23 Oct 2026
Listing gain
+0.71%
Return since issue
-77.30%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 19 Dec 2023 – 21 Dec 2023
- Listing date
- 27 Dec 2023
- Face value
- ₹2 per share
- Issue price
- ₹280 per share
- Lot size
- 53 shares
- Total issue size
- ₹550 Cr
- Market cap at offer price
- ₹1,800 Cr
- Promoter holding
- 66.66% → 53.66% pre-issue → post-issue
- ISIN
- INE220Q01020
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Dam Capital Advisors Ltd.
- Registered office
- B-8, MIDC Central Road, Marol, Next to MIDC Police Station, Andheri (East), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 58,90,488 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 53 shares per lot, in multiples, at ₹280
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 53 | ₹14,840 |
| Retail (max) | 13 | 689 | ₹1,92,920 |
| S-HNI (min) | 14 | 742 | ₹2,07,760 |
| S-HNI (max) | 67 | 3,551 | ₹9,94,280 |
| B-HNI (min) | 68 | 3,604 | ₹10,09,120 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
58,90,488
Anchor portion
₹165 Cr
at ₹280 per share
Valuation and performance
Valuation at offer price
₹280 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 0.54 | — |
| P/E (×) | 518.52 | — |
| Market cap | — | ₹1,800 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 29.98%
- ROCE
- 28.16%
- Debt / equity
- 0.65
- PAT margin
- 15.56%
- NAV per share
- ₹43.75
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Credo Brands Marketing
Credo Brands Marketing Limited ('Mufti') was launched 25 years ago by promoter Kamal Khushlani as an alternative dressing solution for contemporary Indian men seeking stylish casual wear. The company does not manufacture apparel but designs products in-house and outsources manufacturing to third-party partners. Mufti generates revenue through the retail sale of garments (shirts, t-shirts, jeans, chinos) and accessories across a diversified distribution network comprising 404 exclusive brand outlets (EBOs), 71 large format stores (LFSs), 1,332 multi-brand outlets (MBOs), and online channels as of September 30, 2023. For FY 2023, the company generated ₹4,981.82 million in revenue from operations with a profit after tax of ₹775.14 million.
Company Analysis
from RHPCredo Brands Marketing Limited, operating under the 'Mufti' brand, is engaged in the retail sale of men's casual western wear garments and accessories through exclusive brand outlets, large format stores, multi-brand outlets, and online channels across India.
Credo Brands Marketing Limited ('Mufti') was launched 25 years ago by promoter Kamal Khushlani as an alternative dressing solution for contemporary Indian men seeking stylish casual wear. The company does not manufacture apparel but designs products in-house and outsources manufacturing to third-party partners. Mufti generates revenue through the retail sale of garments (shirts, t-shirts, jeans, chinos) and accessories across a diversified distribution network comprising 404 exclusive brand outlets (EBOs), 71 large format stores (LFSs), 1,332 multi-brand outlets (MBOs), and online channels as of September 30, 2023. For FY 2023, the company generated ₹4,981.82 million in revenue from operations with a profit after tax of ₹775.14 million.
Apparel retailMen's casual western wearFashion and retail
Objects of the Issue
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges p.21
- Enhance visibility and brand image and provide liquidity to shareholders p.21
- The Offer comprises of Offer for Sale by Selling Shareholders; Company will not receive any proceeds ₹ [●] million p.69
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges and carry out Offer for Sale p.110
Issue Structure
- Total Issue
- Up to ₹[●] million
- Fresh Issue
- 0 (This is 100% Offer for Sale)
- Offer for Sale
- Up to 19,634,960 Equity Shares of face value of ₹2 each aggregating up to ₹[●] million
- Price Band
- ₹[●] per Equity Share (Floor Price) to ₹[●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares (Bid Lot)
- Face Value
- ₹2 per Equity Share
Business Model
The company earns revenue through retail sales of men's casual western wear garments and accessories. Products are sold through company-owned and company-operated (COCO) exclusive brand outlets, company-owned and franchise-operated (COFO) outlets, franchise-owned and franchise-operated (FOFO) outlets, large format stores, multi-brand outlets, and online channels. The company designs products in-house and outsources manufacturing to third-party manufacturing partners, with finished goods distributed through a centralized warehouse and distribution network across India.
Business Segments
Sales through exclusive brand outlets (company-owned and company-operated, company-owned and franchise-operated, and franchise-owned and franchise-operated stores)
Sales through company website and e-commerce marketplaces
Company-operated retail stores selling Mufti brand apparel
Retail outlets operated by partners selling Mufti among other brands
Large retail format stores
Sales through company website and e-commerce marketplaces
Sale of trims and odd lot sales
Designs and retails casual-focused men's apparel including casual shirts, T-shirts, denims, shorts, cargos, activewear and casual trousers for everyday wear
Company-owned and franchised retail stores under the Mufti brand selling directly to consumers; operates 379 EBOs across 213 Indian cities as of May 2023
T-shirts, flatknits, sweatshirts and shirts
Jeans, chinos, cotton pants, joggers, cargos and shorts
Jackets, sweaters and blazers
Revenue generated through EBOs, MBOs, LFSs, online, and others
Retailing of men's casual wear under the brand name MUFTI through own stores, distributors, franchisees, large format stores, and e-commerce channels
SWOT Analysis
Strengths
- • 25-year-old established brand with strong market positioning(p.21)
- • Diversified distribution network across multiple channel types and geographies(p.21)
- • Strong financial growth trajectory with revenue increasing from ₹2,448.26 Mn (FY 2021) to ₹4,981.82 Mn (FY 2023)(p.32)
- • Comprehensive in-house design capabilities with professional quality assurance team(p.21)
- • Significant network expansion with 1,807 total touchpoints as of September 30, 2023(p.37)
- • Strong financial position with consistently increasing profitability(p.77)
- • Diversified multi-channel distribution network across EBOs, MBOs, LFSs, and online platforms(p.75)
- • Established brand recognition with decade-long operational history(p.80)
- • Efficient inventory management system enabling optimized stock levels(p.51)
- • Strong credit rating maintained consistently(p.57)
- • Highest EBITDA margin among peers in FY 2023(p.158)
- • Strong brand equity with 25 years of market presence(p.165)
- • Diverse product portfolio across multiple occasions(p.165)
- • Pan-India multi-channel distribution network reaching Tier-3 cities(p.162)
- • Asset-light scalable model with improving ROCE(p.167)
- • Strong in-house design capabilities with experienced team(p.168)
- • Longstanding relationships with suppliers and manufacturing partners(p.165)
- • Experienced founder-led management with 25+ years in apparel(p.197)
- • Established MUFTI brand with retail footprint(p.226)
- • Strong promoter ownership and continuity(p.212)
- • Experienced promoter leadership(p.213)
- • Growing revenue trajectory(p.254)
- • Improving profitability(p.222)
Weaknesses
- • High inventory holding and management complexity with 198 inventory turnover days(p.32)
- • Significant dependence on third-party manufacturing partners without exclusivity arrangements(p.23)
- • High concentration in top manufacturing partners with top 5 representing 62.22% of procurement value(p.39)
- • Geographic concentration of mother warehouse and majority of manufacturing partners in Karnataka and Tamil Nadu(p.47)
- • Single brand dependency with all products sold exclusively under 'Mufti' brand(p.23)
- • Trademark registration gaps with brand logo combination not registered as trademark(p.44)
- • Historical litigation involving promoters with tax proceedings against directors amounting to ₹10.80 million(p.23)
- • Delayed payments of statutory dues including income tax and GST with associated interest and penalties(p.24)
- • High dependence on promoter leadership creates key person risk(p.61)
- • Minority shareholder influence limited due to concentrated promoter control(p.61)
- • Delayed payments of statutory dues including income tax, GST, and employee provident funds(p.53)
- • Insurance coverage exceeds insurable asset value, creating inefficient capital allocation(p.50)
- • Limited control over e-commerce platform pricing and margin compression(p.51)
- • Historical regulatory non-compliance including delayed AGM and delayed statutory filings(p.57)
- • Audit emphasis of matter regarding financial statements prepared for IPO purposes(p.52)
- • High net working capital days relative to some competitors(p.164)
- • Online channel contributes only 5% of revenue(p.177)
- • Declining EBO revenue contribution and presence in key markets(p.163)
- • Dependence on franchisee partners for majority of store network(p.167)
- • High lease liabilities and rent obligations(p.221)
- • Significant outstanding trade receivables(p.246)
- • High inventory carrying levels(p.246)
- • Seasonal business vulnerability(p.237)
- • Dependence on key promotional shareholders(p.212)
Opportunities
- • High-growth apparel market with projected CAGR of ~18% from FY 2023 to FY 2027(p.21)
- • Expansion into emerging tier 2 and tier 3 markets with existing presence from major metros(p.37)
- • Growing e-commerce channel contribution providing diversification from offline retail(p.41)
- • Listing on stock exchanges to enhance brand visibility and access to capital markets(p.21)
- • Expansion into complementary product categories including footwear, belts, caps, socks, and undergarments(p.51)
- • Growth in e-commerce channel with increasing digital adoption(p.51)
- • Rising smartphone penetration and digital payment adoption enabling online retail expansion(p.50)
- • Potential for multi-location store expansion through company-operated EBOs and franchise model(p.56)
- • Organized market share growth in men's apparel from 45% to 60% by FY 2027(p.162)
- • Casual wear categories growing at CAGR >20%(p.162)
- • Casual menswear outpacing formal wear at 22% vs 18% CAGR through FY 2027(p.162)
- • Online retail share expected to reach 24% by FY 2027(p.171)
- • Expansion into non-apparel accessories growing at 20.4% CAGR(p.171)
- • Tier-2 and Tier-3 market penetration with growing EBO network(p.170)
- • Brand extension into men's lifestyle with shoes, caps and socks(p.171)
- • Expansion of retail footprint and store count(p.257)
- • Multi-channel distribution strategy(p.234)
- • Capital structure optimization post-IPO(p.214)
- • Customer loyalty program monetization(p.234)
Threats
- • Intense competition from established players in apparel retail market(p.31)
- • Vulnerability to changing consumer preferences and fashion trends(p.31)
- • Seasonality in product demand particularly for winter wear items(p.42)
- • Economic sensitivity with retail apparel purchases declining during recession periods(p.32)
- • Pricing pressure from competitors and online platforms affecting margins(p.31)
- • Risk of intellectual property infringement and counterfeit products in unorganized segment(p.45)
- • Real estate lease risks with all EBOs operating on leasehold basis subject to rental market fluctuations(p.45)
- • Dependence on third-party raw material suppliers without long-term contracts(p.42)
- • Vulnerability to raw material price fluctuations impacting product costs(p.42)
- • Geographic concentration risk with mother warehouse and manufacturing partners concentrated in southern India(p.47)
- • Rising labor costs and potential increases in minimum wages affecting profitability(p.49)
- • Inflation potentially reducing margins if prices cannot be increased proportionately(p.66)
- • Dependence on contract laborers with potential wage payment liability exposure(p.49)
- • Payment processing risks including interchange fees that may increase operating costs(p.49)
- • Global economic instability and Indian macro-economic vulnerabilities affecting domestic demand(p.63)
- • Regulatory changes and compliance risks including GST implementation and Labour Codes(p.64)
- • Intense competition and pressure on margins in apparel retail sector(p.51)
- • Cyber security and data protection risks potentially damaging brand reputation(p.52)
- • Natural disasters, pandemics, and war creating business disruption risk(p.63)
- • Dependence on third-party manufacturing partners and supply chain vulnerabilities(p.51)
- • Competitive intensity in mid-premium casual wear segment(p.165)
- • Macroeconomic pressures on franchisee financial viability(p.180)
- • Fashion trend volatility and changing consumer preferences(p.162)
- • Retail real estate and lease cost pressures(p.167)
- • Uncertainty in economic conditions affecting consumer spending(p.214)
- • Dependence on credit facilities with restrictive covenants(p.214)
- • Fashion retail industry cyclicality and competition(p.257)
- • Exposure to foreign currency fluctuations(p.234)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Kamal Khushlani | Promoter | 33.53% | — |
| Poonam Khushlani | Promoter | 27.37% | — |
| Kamal Khushlani | Promoter | 22,260,420 equity shares (33.53%) | 33.53% |
| Poonam Khushlani | Promoter | 18,164,380 equity shares (27.37%) | 27.37% |
| G. G. Automotive Gears Limited | Promoter Group | null | null |
| Kennedy Ram Gajra | Promoter Group | null | null |
| Kamal Khushlani | Promoter | 33.53% | 27.30% |
| Poonam Khushlani | Promoter | 27.37% | 20.92% |
| Sonakshi Khushlani | Promoter Group | 2.88% | 2.72% |
| Andrew Khushlani | Promoter Group | 2.88% | 2.72% |
| Concept Communication Limited | Promoter Group | 3.06% | — |
| Bela Properties Private Limited | Promoter Group | 7.58% | — |
| Bennett Coleman and Co. Limited | Shareholder (1% or more) | 12.24% | — |
| Kamal Khushlani | Promoter | 33.53% | 27.30% |
| Poonam Khushlani | Promoter | 27.37% | 20.92% |
| Kamal Khushlani | Promoter | 34.62% | — |
| Poonam Khushlani | Promoter | 28.25% | — |
| Kamal Khushlani | Promoter | — | — |
| Poonam Khushlani | Promoter | — | — |
| Kamal Khushlani | Selling Shareholder | — | — |
| Poonam Khushlani | Selling Shareholder | — | — |
| Sonakshi Khushlani | Selling Shareholder | — | — |
| Andrew Khushlani | Selling Shareholder | — | — |
| Concept Communication Limited | Selling Shareholder | — | — |
| Bela Properties Private Limited | Selling Shareholder | — | — |
| Jay Milan Mehta | Selling Shareholder | — | — |
| Sagar Milan Mehta | Selling Shareholder | — | — |
Leadership
Kamal Khushlani · Chairman and Managing Director
Poonam Khushlani · Whole-time Director
Rasik Mittal · Chief Financial Officer
Sanjay Kumar Mutha · Company Secretary and Compliance Officer
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.
Credo Brands Marketing IPO FAQs
What is the lot size of Credo Brands Marketing IPO?
The minimum lot size of Credo Brands Marketing IPO is 53 shares. One lot costs ₹14,840 at the cut-off price.
When does Credo Brands Marketing IPO open and close?
Credo Brands Marketing IPO opened for subscription on 19 Dec 2023 and closed on 21 Dec 2023.
What is the listing date of Credo Brands Marketing IPO?
Credo Brands Marketing IPO listed on 27 Dec 2023.