Credo Brands IPO picks up pace on Day 2 with 5.19x subscription so far; GMP jumps
The category reserved for retail investors was subscribed 6.9 times, while that for NIIs was booked 7.78 times. The QIB portion lagged with just 27% of subscriptions.
According to market analysts, the company's shares are trading at a premium of Rs 145 in the unlisted market.
Credo Brands Marketing is one of the largest homegrown brands in the mid-premium and premium men's casual wear market in India in terms of market share in fiscal 2022.
Led by Kamal Khushlani, Credo Brands operates the brand «Mufti», which is now celebrating its 25th anniversary. It provides a wide array of wardrobe solutions, encompassing a range of products such as shirts, t-shirts, jeans, chinos, and more.
The issue is completely an offer for sale of 1.96 crore shares.
Since the IPO is an OFS, the proceeds will entirely go to the selling shareholders and not the company.
Credo Brands IPO review
Analysts are positive on the IPO over consistent profit growth in the past few years and fair valuations.
«Since financials of the company are strong and valuations are reasonable in comparison to its listed peers, we believe that the company is fairly priced and recommend a ‘subscribe’ rating to the IPO,» said Anand Rathi.
Credo Brands price band
Credo Brands Marketing has fixed a price band of Rs 266-280 for its IPO. Investors can bid for a minimum of 53 shares in one lot.
Credo Brands financials
In FY23, revenue from operations jumped 46% year-on-year to Rs 498 crore, and profit increased to Rs 77.5 crore in the same period.
Credo Brands book running lead managers
DAM Capital Advisors, ICICI Securities and Keynote Financial Services are the book-running lead managers to the issue.
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