Credo Brands IPO day 3: Should you buy? A look at GMP, subscription status and other details
₹550 crore initial public offering (IPO) of Mufti Menswear brand owner Credo Brands Marketing (CBML) opened for subscription on Tuesday, December 19, and will close today, December 21. The company has a price band of ₹266-280 per share for the issue. Subscription: On the final day of bidding itself, the issue was subscribed 9.34 times by 11:10 am.
It has received bids for 12.83 crore shares as against 1.37 crore shares on offer. The Non-Institutional Investors' (NII) portion was subscribed the most, 17.09 times followed by the retail investor quota, which was bid 11.15. However, the Qualified Institutional Buyers (QIBs) part was just subscribed 37 percent.
GMP: The company's shares in the grey market continued trading at 145, indicating a 52 percent premium versus the IPO price at listing. It has been the same since December 19. On December 18, its GMP stood at ₹136.
However, one must note that grey market premium is only an indicator of how the company's shares are performing in the unlisted market and can change quickly. Issue Size: The issue is a complete offer for sale (OFS) for 1.96 crore shares worth ₹549.78 crore by promoters and investors. There is no fresh issue component in the IPO.
Promoters selling include Kamal Khushlani, Poonam Khushlani, Sonakshi Khushlani, Andrew Khushlani, Concept Communication, Bela Properties, Jay Milan Mehta and Sagar Milan Mehta. Lot Size: Investors can bid for a minimum of 53 equity shares and in multiples of 150 thereafter. Hence, at the upper price band, retail investors will have to invest ₹14,840 for one lot Reservation: The company has reserved half of the issue or 50 percent for the qualified institutional bidders (QIBs), while retail investors will get 35 percent of the
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