S D Retail
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 20 Sep 2024 – 24 Sep 2024
- Listing date
- 27 Sep 2024
- Face value
- ₹10 per share
- Issue price
- ₹131 per share
- Lot size
- 1,000 shares
- Listing at
- NSE
- Total issue size
- ₹64.98 Cr
- Market cap at offer price
- ₹245 Cr
- Promoter holding
- 88.82% → 65.29% pre-issue → post-issue
- ISIN
- INE0X6F01017
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- C-929, Stratum at Venus ground, Nr.Jhansi Ki Rani Statue, Nehrunagar, Ambawadi, 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 |
|---|---|---|---|
| Anchor investor · within QIB | 14,12,000 | — | — |
| Market maker | 2,50,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹131
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,31,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,62,000 |
| S-HNI (max) | 7 | 7,000 | ₹9,17,000 |
| B-HNI (min) | 8 | 8,000 | ₹10,48,000 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 5.52 | 4.06 |
| P/E (×) | 23.73 | 32.27 |
| Price to book (×) | 4.31 | — |
| Market cap | — | ₹245 Cr |
Key performance indicators
- Return on net worth
- 18.18%
- ROCE
- 15.61%
- Debt / equity
- 1.04
- PAT margin
- 4.67%
- NAV per share
- ₹30.37
- Price to book
- 4.31
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About S D Retail
S D Retail Limited, formerly S D Retail Private Limited, was incorporated in May 2004 and converted to a public company in June 2024. The company operates under the brand name 'SWEET DREAMS' and is engaged in the business of designing, manufacturing (via outsourcing), marketing, and retailing sleepwear with a portfolio spanning women's sleepwear (57.04% of FY2024 revenue), men's sleepwear (33.00%), and kids' sleepwear (9.96%). The company also offers adjacent categories including loungewear, workout wear, athleisure, and work leisure pants. Revenue grew from ₹12,873.65 Lakhs in FY2022 to ₹13,568.86 Lakhs in FY2023 and ₹16,328.48 Lakhs in FY2024. The company distributes through Exclusive Brand Outlets (EBOs), Large Format Stores (LFS), Multi-Brand Outlets (MBOs), online channels, and franchisee arrangements. As of March 31, 2024, the company had 23 EBOs (growing to 33 by the RHP date), with presence primarily in North and West regions of India.
Company Analysis
from RHPS D Retail Limited (SWEET DREAMS) designs, manufactures, and retails sleepwear and loungewear for men, women, and kids through exclusive brand outlets, multi-brand outlets, large format stores, and online channels across India.
S D Retail Limited, formerly S D Retail Private Limited, was incorporated in May 2004 and converted to a public company in June 2024. The company operates under the brand name 'SWEET DREAMS' and is engaged in the business of designing, manufacturing (via outsourcing), marketing, and retailing sleepwear with a portfolio spanning women's sleepwear (57.04% of FY2024 revenue), men's sleepwear (33.00%), and kids' sleepwear (9.96%). The company also offers adjacent categories including loungewear, workout wear, athleisure, and work leisure pants. Revenue grew from ₹12,873.65 Lakhs in FY2022 to ₹13,568.86 Lakhs in FY2023 and ₹16,328.48 Lakhs in FY2024. The company distributes through Exclusive Brand Outlets (EBOs), Large Format Stores (LFS), Multi-Brand Outlets (MBOs), online channels, and franchisee arrangements. As of March 31, 2024, the company had 23 EBOs (growing to 33 by the RHP date), with presence primarily in North and West regions of India.
Objects of the Issue
- Capital expenditure to be incurred by our Company for setting up new exclusive brand outlets (EBOs) ₹1,648.85 Lakhs p.23
- Funding Working Capital Requirement ₹3,500.00 Lakhs p.23
- General Corporate Expenses p.23
- Capital expenditure to be incurred by our Company for setting up new exclusive brand outlets (EBOs) ₹1648.85 lakhs p.102
- Funding Working Capital Requirement ₹3500.00 lakhs p.102
- General Corporate Purpose p.102
- General corporate purposes p.113
- Working capital requirement p.276
- General corporate purposes p.276
- Issue expenses p.276
Issue Structure
- Total Issue
- Up to ₹[●] Lakhs
- Fresh Issue
- 49,60,000 Equity Shares of ₹10/- each
- Offer for Sale
- Nil (Not Applicable - entire issue constitutes fresh issue)
- Price Band
- Price Band will be decided by the Company in consultation with BRLM and advertised at least 2 working days prior to Bid/Issue Opening Date
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10.00 each
Business Model
SWEET DREAMS operates as a design-focused, asset-light model: the company designs products in-house and outsources majority of manufacturing to third-party manufacturing partners (66% of purchases in FY2024 were outsourced). Revenue is generated through multiple channels: MBOs/Distributors (63.24% of FY2024 revenue), Online Channels (17.16%), EBOs (6.71%), LFS (10.68%), and other channels (1.34%). The company maintains a direct retail presence through EBOs across COCO (Company-Owned Company-Operated), COFO (Company-Owned Franchisee-Operated), and FOFO (Franchisee-Owned Franchisee-Operated) models. The company also operates an e-commerce presence on its own website and through multiple third-party e-commerce platforms.
Business Segments
SWOT Analysis
- • Strong brand in sleepwear with growing market presence(p.23)
- • Growing revenue trajectory with 27% CAGR(p.36)
- • Experienced management with deep sector expertise(p.39)
- • Positive industry tailwind with expanding market opportunity(p.23)
- • Lender consent requirements provide structured financial governance(p.51)
- • No prior instances of internal control system failures(p.51)
- • Related party transactions conducted on arm's length basis(p.51)
- • Strong HDFC Bank financing relationship for working capital(p.51)
- • Existing commercial insurance coverage(p.53)
- • Multi-channel pan-India distribution network with established EBO presence(p.142)
- • In-house design expertise enabling rapid product innovation(p.142)
- • Asset-light scalable business model with strong unit economics(p.142)
- • Strong repeat customer base with high loyalty(p.143)
- • Unique gender-agnostic positioning in sleepwear market(p.143)
- • Organizational stability and experienced management team(p.143)
- • Revenue growth acceleration with 20.11% YoY growth in FY2024(p.141)
- • Strong gross profit margin at 53.36% demonstrating pricing power(p.141)
- • Established retail presence across modern and exclusive brand outlets(p.174)
- • Strong promoter backing with 20 years of industry experience(p.179)
- • Diversified distribution network with online sales capability(p.174)
- • Demonstrated revenue growth trajectory(p.205)
- • Profitability improvement with rising profit after tax(p.205)
- • Established sleepwear-focused brand with wide product portfolio(p.238)
- • Multi-channel distribution network covering major geographies(p.239)
- • Strong management team with significant industry experience(p.239)
- • Dual revenue model with Essentials and Fashion product lines(p.238)
- • Revenue growth momentum with 20.34% YoY growth in FY2024(p.242)
- • Growing EBO network improving brand recall and ROI(p.239)
- • Heavy dependence on women's sleepwear (57% of revenue)(p.31)
- • Significant reliance on outsourced manufacturing without exclusivity(p.36)
- • High inventory concentration and capital intensity(p.34)
- • Substantial outstanding indebtedness(p.46)
- • Pending NCLT insolvency petition against company(p.30)
- • Trademark infringement litigation risk(p.38)
- • Concentration among top 10 customers (40% of revenue)(p.46)
- • Concentration among top 10 suppliers (52% of purchases)(p.46)
- • Unsecured loans from promoters that can be recalled anytime(p.48)
- • Lack of adequate internal control systems and automation of collection processes(p.51)
- • Significant dependence on single lender HDFC Bank for working capital(p.51)
- • Negative cash flows from operations in prior years(p.52)
- • Conflict of interest risk from promoter shareholding(p.52)
- • Insurance coverage may not be adequate for all potential losses(p.53)
- • Restrictions on deployment of IPO proceeds without shareholder approval(p.54)
- • High customer concentration with top 5 customers representing 30% of revenue(p.153)
- • Working capital intensity with 209.40 days cycle in FY2024(p.141)
- • Dependence on MBO/distributor channel for 63.24% of revenue(p.148)
- • Negative operating cash flow of Rs 1,219.11 Lakhs in FY2024(p.141)
- • Declining PAT margin to 4.67% from 7.87% two years prior(p.141)
- • Relatively small scale compared to listed peers in the segment(p.118)
- • High dependence on two major promoter shareholders(p.208)
- • Significant short-term borrowings with working capital dependency(p.204)
- • Rising cash flow deficit from operations(p.206)
- • Trade receivables constitute large portion of current assets(p.204)
- • Rising finance costs indicating increased debt burden(p.219)
- • Personal guarantees by promoters on bank borrowings(p.182)
- • High customer concentration with top 10 customers representing 39.99% of revenue(p.247)
- • Significant debt burden with Debt-Equity ratio of 1.04(p.228)
- • Deteriorating debt service coverage with DSCR of 0.28 in FY2024(p.228)
- • Material litigation pending including trademark rectification case(p.253)
- • Multiple pending tax matters and contingent liabilities(p.235)
- • Outstanding dues to Micro and Small & Medium Enterprises of ₹939.79 lakhs(p.259)
- • Expansion of retail network through planned EBO openings(p.35)
- • Geographic expansion into South and East regions(p.43)
- • Product portfolio diversification into adjacent categories(p.49)
- • Growing e-commerce and online channels penetration(p.31)
- • Expansion of EBO network for retail distribution growth(p.105)
- • Working capital funding to support business expansion(p.107)
- • Listing benefits for brand visibility and corporate image enhancement(p.103)
- • Improved average revenue per EBO demonstrates scaling potential(p.105)
- • India sleepwear market projected to reach USD 1,303.88 Million by 2029 with 15.12% CAGR(p.136)
- • Significant growth in EBO channel with expansion from 23 to 33 stores post March 2024(p.146)
- • Expand EBO network across South and East regions currently underpenetrated(p.144)
- • Growing women's sleepwear segment expected to reach USD 892.08 Million by 2029(p.138)
- • Capitalize on e-commerce growth with website sales growing from Rs 4.62 Lakhs to Rs 198.99 Lakhs(p.149)
- • Adjacent category expansion into athleisure and loungewear with SDMOVE collection(p.145)
- • Export market potential with current exports only representing 0.88% of revenue(p.119)
- • Phase 2 business model shift toward D2C channels for margin expansion(p.143)
- • Expansion through new exclusive brand outlet locations(p.174)
- • E-commerce market penetration and digital channel growth(p.174)
- • Government support through Production-Linked Incentive Scheme(p.167)
- • Technology upgradation support under TUFS(p.166)
- • Favorable trade policy framework for apparel exports(p.170)
- • Expansion into adjacent categories and occasion wear(p.239)
- • Growing e-commerce channel with 17.16% of FY2024 revenue(p.239)
- • Increasing online sales showing strong growth momentum(p.242)
- • Sleepwear's unique positioning as habit-forming, frequent-wear category(p.239)
- • Potential to expand geographical reach and distribution network(p.240)
- • Intense competition from organized and unorganized players(p.33)
- • Fluctuations in raw material prices without long-term contracts(p.49)
- • Rapid changes in consumer preferences and fashion trends(p.32)
- • Economic sensitivity and impact of recessions on demand(p.32)
- • Pricing pressure from competitors(p.33)
- • Geographic concentration risk in manufacturing(p.44)
- • Power supply disruptions and energy cost volatility(p.48)
- • COVID-19 pandemic and future pandemic risks(p.48)
- • Dependence on third-party logistics without backup(p.49)
- • Lender default could restrict operational funding and growth(p.51)
- • Changes in tax policies could materially impact results(p.52)
- • Indian economic slowdown and macro factors outside company control(p.53)
- • Fluctuating operating results and difficult profit margin prediction(p.53)
- • Risk of workforce unionization and labor disputes(p.53)
- • Unverified industry and market data reliability(p.53)
- • Competition Act enforcement could materially adversely affect business(p.58)
- • GST regime and GAAR provisions create tax uncertainty(p.58)
- • Natural disasters and political instability could adversely affect operations(p.57)
- • Sleepwear demand heavily dependent on seasonality particularly for winter merchandise(p.112)
- • Intense competition from established innerwear brands entering sleepwear category(p.143)
- • Competitive pressure from large established apparel players with stronger financial resources(p.136)
- • Dependence on contract manufacturers creating supply chain risk(p.150)
- • Rising raw material costs and fabric price volatility impacting margins(p.156)
- • Exposure to currency and input price fluctuations on imported materials(p.156)
- • Regulatory compliance requirements and potential tax liabilities for MSME regulations(p.110)
- • Textile industry regulatory changes and compliance complexity(p.168)
- • GST and indirect tax compliance obligations(p.166)
- • Environmental and pollution control regulations(p.169)
- • Foreign exchange and import-export regulatory uncertainty(p.170)
- • Rising raw material input costs and commodity price volatility(p.219)
- • Labor law compliance and employment regulation changes(p.171)
- • High seasonality affecting sales with summer and winter fluctuations(p.247)
- • Disruptions in manufacturing and contract manufacturing processes(p.240)
- • Raw material price volatility impacting margins(p.244)
- • Exposure to regulatory compliance risks across multiple jurisdictions(p.240)
- • General economic downturn risks including potential recession(p.240)
- • Intense competitive conditions in the apparel industry(p.247)
- • COVID-19 pandemic continuing to create operational uncertainties(p.240)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Hitesh Pravinchandra Ruparelia | Individual Promoter | 34.52% | 25.38% |
| Mr. Utpalbhai Pravinchandra Ruparelia | Individual Promoter | 23.02% | 16.92% |
| M/s. Sweet Dreams Loungewear (India) LLP | Corporate Promoter | 10.39% | 7.64% |
| M/s. Grace Garments LLP | Corporate Promoter | 15.46% | 11.36% |
| Hitesh Pravinchandra Ruparelia | Promoter & Chairman cum Managing Director | 34.52% | 25.38% |
| Utpalbhai Pravinchandra Ruparelia | Promoter & Whole Time Director | 23.02% | 16.92% |
| Sweet Dreams Loungewear (India) LLP | Promoter | 10.39% | 7.64% |
| Grace Garments LLP | Promoter | 15.46% | 11.36% |
| Hitesh Pravinchandra Ruparelia | Promoter | — | — |
| Utpal Pravinchandra Ruparelia | Promoter | — | — |
| Mr. Hitesh Pravinchandra Ruparelia | Promoter | 34.52% | — |
| Mr. Utpalbhai Pravinchandra Ruparelia | Promoter | 23.02% | — |
| Sweet Dreams Loungewear (India) LLP | Promoter Group | 10.39% | — |
| Grace Garments LLP | Promoter Group | 15.53% | — |
| Hitesh Pravinchandra Ruparelia | Promoter | — | — |
| Utpal Pravinchandra Ruparelia | Promoter | — | — |
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.