Mufti parent Credo Brand's IPO subscribed nearly 7 times on Day 2

The initial public offering (IPO) of Credo Brands Marketing Limited, best known for the Mufti clothing brand, was subscribed nearly 7 times on December 20, the second day of bidding,  with bids coming in for 9.5 crore shares against an offer size of 1.37 crore.

Retail investors bought 8.7 times their allotted quota of shares and high net-worth individuals picked 11.5 times the shares set aside for them. Qualified institutional buyers picked 35 percent of their reserved portion.

The Mufti menswear parent plans to raise Rs 549.78 crore through the IPO, which is purely an offer for sale (OFS). The price band for the issue had been fixed at Rs 266-280 a share, with a lot size of a minimum 53 shares followed by multiples of 53.

Also read: Mufti Menswear IPO: 10 things to know before subscribing to the Rs 549 crore issue

The OFS of 1.96 crore shares comes through promoters Kamal Khushlani and Poonam Khushlani. Non-promoters, including Concept Communication, Bela Properties, Jay Milan Mehta and Sagar Milan, too plan to offload shares.

Of the total issue size, Credo Brands, which offers casual clothing for men with its flagship brand Mufti, has already mobilised Rs 164.93 crore through the anchor book that was launched on December 18 at the upper price band.

In FY23, Mufti's net profit grew 117 percent on-year to Rs 77.5 crore and revenue rose 46 percent to Rs 498.2 crore. For the April-June quarter of the current financial year, its net profit was Rs 8.57 crore on revenue of Rs 118.5 crore.