CPS Shapers IPO to hit Dalal Street on August 29

CPS Shapers has a pan-India presence with a distributor network in 28 states and eight union territories.

Shapewear manufacturer CPS Shapers will be opening its initial public offering for subscription on August 29. It is a fixed price issue, with an offer price of Rs 185 per share.

The public issue of six lakh shares, which is 28.57 percent of post-issue paid-up equity, comprises 31,200 equity shares for the market maker and the remaining 5,68,800 equity shares for others including retail investors and high-networth individuals.

The textile company is planning to raise Rs 11.10 crore via the public offer, which is entirely a fresh issue.

The net fresh issue proceeds will be utilised for the purchase of plant and machinery, commercial vehicles, and solar power system. The funds will also be used for the upgradation of existing IT software, repaying debts, working capital requirements, and general corporate purposes.

The offer will close on August 31.

CPS Shapers, promoted by Abhishek Kamal Kumar and Rajendra Kumar, manufactures shapewear for men and women, under its brand name Dermawear and YDIS.

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It has a pan-India presence with a distributor network in 28 states and eight union territories. It also has an export division and is supplying products to Canada, Germany, Australia, the United Kingdom and the United States, based on sales made for FY23.

CPS Shapers, which is available at a PE of 11.28x on FY23 basis, compares itself with listed peers like Page Industries, Lux Industries, Dollar Industries, KPR Mill, and Arvind, which traded at a PE of 12.58-78.85x range.

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The financial performance of the Maharashtra-based Dermawear shapewear remained strong in the past years, with profit in the financial year ended March 2023 rising 56.7 percent on-year to Rs 2.46 crore and revenue increasing by 38 percent to Rs 36.8 crore compared to the previous year. The EBITDA (earnings before interest, tax, depreciation and amortisation) at Rs 4.81 crore increased by 101.3 percent with a margin expansion of 411 bps at 13.07 percent during the same period.

CPS Shapers will debut on the NSE SME Emerge on September 8.

Shreni Shares is the merchant banker to the issue, while Bigshare Services is the registrar to the offer.