Mufti brand jeans owner files draft papers with SEBI to raise funds via IPO

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Credo Brands Marketing Ltd, which sells Mufti brands of jeans, has filed draft papers with Securities and Exchange Board of India to raise funds via initial public offerings.

The issue is a pure offer for sale of up to 19.63 million shares by its existing shareholders and promoters. The OFS comprises of up to 4.14 million shares by Kamal Khushlani, up to 4.28 million shares by Poonam Khushlani, up to 2.03 million shares by Concept Communications Ltd, up to 5.03 million shares by Bela Properties Pvt Ltd, up to 1.97 million shares each by Jay Milan Mehta and Sagar Milan Mehta and upto 0.11 million shares by Andrew Khushlani.

Dam Capital Advisors, ICICI Securities and Keynote Financial Services Ltd are the lead managers to the issue.

The company is one of the leading domestic brands in the mid-premium and premium segments of the men's casual wear market in India, holding a significant market share.

As of May 31, 2023, the company has established a widespread presence across India with a total of 1,773 touchpoints. These touchpoints include 379 Exclusive Brand Outlets (EBOs), 89 Large Format Stores (LFSs), and 1,305 Multi-Brand Outlets (MBOs). The company's reach extends from major metropolitan areas to Tier-3 cities, ensuring a broad customer base across various locations.

As of March 2023, the company had established a network of 45 fabric and accessories suppliers, along with over 45 manufacturing partners. Among these suppliers and partners, the top five have been associated with the company for an average of eight years each.

For fiscal year 2023, the company reported a revenue of Rs 498.18 crore against Rs 341.17 crore a year ago. Net profit for the year stood at Rs 77.51 crore versus Rs 35.74 crore last year. EBITDA margin was at 32.89 percent from 27.87 percent. Net debt for the period stood at Rs 183.78 crore versus Rs 103.59 crore a year ago.