Credo Brands IPO hits D-Street; should you subscribe to it? Check Anil Singhvi's view

Credo Brands IPO: The initial public offering (IPO) of Mufti jeans maker Credo Brands opened for subscription on Tuesday, December 19. The company plans to raise Rs 550 crore through its IPO. The company's issue is entirely an offer for sale (OFS) of up to 1.96 crore shares by promoters and other existing shareholders.

Here are some of the key details about Credo Brands IPO:

Credo Brands Ltd IPO: Important dates

The subscription window for the IPO will be available from 10 am to 5 pm for three trading days ending on December 21.

Tentatively, shares of Credo Brands will be listed on the NSE and BSE on Wednesday, December 27.

Credo Brands Ltd IPO: Price band

The price band of the issue is fixed at Rs 266 to Rs 280 per share.

At the lower and upper ends of the price band, the IPO is expected to fetch Rs 522 crore and Rs 550 crore, respectively.

Credo Brands Ltd IPO: Lot size

Investors can bid for a minimum of 53 equity shares and in multiples of 53 shares thereafter.

Credo Brands Ltd IPO: Allotment

Tentatively, the basis of the allotment of shares will be finalised on Friday, December 22. Subscribers will be able to check the allotment status on the website of Registrar Link Intime India Private Ltd. Here's the direct link. 

Credo Brands Ltd IPO: Fund utilisation 

Since the offer is an OFS, the company will not receive any proceeds.

About Credo Brands Ltd 

Credo Brands Marketing is among the leading homegrown brands in the mid-premium and premium casual men's wear markets in the country.

As of September 2023, Credo Brands Marketing has a presence across India through 1,807 touchpoints, including 404 exclusive brand outlets (EBOs), 71 large format stores, and 1,332 multi-brand outlets (MBOs).

Anil Singhvi's View on Credo Brands Ltd 

Zee Business Managing Editor Anil Singhvi says that investors should apply for the IPO for good listing gains and that the stock is a good bet from a long-term perspective. The expert has listed the following pros and cons of the company and the offer:

Pros

-Experienced promoters

-Strong brand and reach

-Asset light model

-Impressive growth track record

-Positive cash flows

-Dividend-paying 

Cons

-Huge competition, no entry barriers

-High inventory and working capital days

-Full OFS, no money for the company

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