Credo Brands Marketing Limited

About  Credo Brands Marketing Limited

Incorporated in 1999, Credo Brands Marketing Limited retails men’s garments and accessories. The company markets its clothes under the brand name “Mufti”. Its product portfolio includes shirts, t-shirts, trousers, sweatshirts, jeans, cargo, chinos, jackets, blazers and sweaters in categories such as casuals, party wear and athleisure. 

It has a multi-channel distribution network of exclusive brand outlets (EBOs), large format stores (LFSs), multi-brand outlets (MBOs), and online channels such as its website and other e-commerce marketplaces. As of 30 September 2023, it had a total of 1,807 touchpoints comprising 404 EBOs, 71 LFSs and 1,332 MBOs in 591 cities in India. 

It operates an asset-light business model by focusing on the design and outsourcing of its manufacturing operations to 48 manufacturing partners as of 30 September 2023. It uses multiple platforms like digital and social media, billboards, multiplex cinemas, and live events to create brand awareness and marketing.

Between FY21 and FY23, the company saw a CAGR rise of 26% in its revenue from operations and 183% in its profit. Moreover, the Indian men’s apparel market is expected to grow at a CAGR of 18% between FY23 and FY27, which could benefit the company. 

And now, Credo Brands Marketing Limited is coming out with its initial public offer (IPO). The entire IPO will be an offer for sale and the selling shareholders will receive the money raised. Its shares will be listed on the NSE and the BSE.

Here are key details about the Credo Brands Marketing Limited IPO:

Financial snapshot

Here’s a quick look at Credo Brands Marketing Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

1. Strong brand equity for Mufti with 25 years of presence in India.
2. Long standing relationships with its 48 fabric and accessories suppliers, including Arvind, NSL Textiles, RSWM and Birla Century as of 30 September 2023. 
3. Scalable asset light model as it outsources its manufacturing and operates stores on properties that are not owned by the company.
4. Strong brand recall with two million customers on its customer loyalty programme, “Muftisphere”. 
5. A multi-channel pan-India distribution network with flagship stores in Mumbai, Ahmedabad, Hyderabad, Surat, Bengaluru, Rajkot, and Jodhpur. 
6. Strong in-house design competencies with a design team of 17 members having produced 682 designs during the six months period ended 30 September 2023.
7. A financially stable business model with an EBITDA margin of 19%, 27% and 32% in FY21, FY22 and FY23 respectively.

Risks and threats

1. Business is entirely concentrated in the men’s casual western wear sector.
2. The company operates in a highly competitive market and faces competition from Jack & Jones, Levi’s, Pepe Jeans U.S. Polo Assn. and Spykar. Also, the business is subject to seasonality.
3. Dependent on third-party manufacturers for finished goods without any exclusivity arrangements.  
4. Over the last three years, it has derived more than 90% of its revenue from offline retail distribution channels.
5. Has incurred indebtedness of ₹11 crore as of 30 June 2023.

Credo Brands Marketing Limited IPO details

|Credo Brands Marketing Limited IPO date

According to the offer document filed by the company with the SEBI, the Credo Brands Marketing IPO’s opening date – in other words, the Credo Brands Marketing IPO launch date – will be 19th December 2023. The Credo Brands Marketing IPO closing date is 21st December 2023. After this, investors will be updated about the allotment status on 22nd December 2023.

Investors, who have been allotted shares, can expect them to be credited to their demat account on 26th December 2023. The Credo Brands Marketing IPO listing date is 27th December 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. 

|Credo Brands Marketing Limited IPO Price Band

The entire IPO is an offer for sale. The Credo Brands Marketing IPO price band has been set between ₹266 and ₹280 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Credo Brands Marketing IPO listing price will be determined on 27th December 2023. The listing price is the price at which a company’s shares debut on the stock exchanges.

|Credo Brands Marketing Limited IPO Lot size

The Credo Brands Marketing IPO details have been declared. The Credo Brands Marketing IPO lot size is set at 53 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Credo Brands Marketing IPO issue size is approx ₹549 crore. 

How to pre-apply for the Credo Brands Marketing Limited IPO?

You can pre-apply for the Credo Brands Marketing Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Credo Brands Marketing Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Credo Brands Marketing Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the Credo Brands Marketing Limited IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Credo Brands Marketing Limited IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Credo Brands Marketing Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Credo Brands Marketing LimitedIPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Credo Brands Marketing Limited IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Credo Brands Marketing Limited IPO allotment status will be mentioned

Check Allotment Status

Open a demat account with Upstox to apply for the Credo Brands Marketing Limited IPO

To apply for the Credo Brands Marketing Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Open Demat Account

Upstox – trading app to apply for the Credo Brands Marketing Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.

You can apply for the Credo Brands Marketing Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.