Credo Brands Marketing Ltd, which owns denim brand Mufti, has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO).

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The IPO is a complete offer for sale (OFS) of up to 1.96 crore shares by promoters and other existing shareholders, according to the draft red herring prospectus (DRHP) filed on Thursday.

Those offering shares in the OFS are promoters Kamal Khushlani and Poonam Khushlani, promoter group members Sonakshi Khushlani, and other shareholders, Andrew Khushlani, Jay Milan Mehta, Sagar Milan Mehta, Concept Communication, and Bela Properties.

At present, promoters and promoter group members together hold over 67 per cent stake in Credo Brands Marketing. Bennett Coleman & Co, which made an investment of over Rs 9 crore for 9.72 per cent ownership, holds a 12.36 per cent stake in the company.

Credo Brands Marketing is among the leading homegrown brands in the mid-premium and premium casual men's wear market in the country. As of May 2023, Credo Brands Marketing has a presence across India through 1,773 touchpoints, including 379 exclusive brand outlets (EBOs) 89 large format stores and 1,305 multi-brand outlets (MBOs).

The company's revenue from operations increased 46 per cent to Rs 498.2 crore in 2022-23 (FY23) from Rs 341.2 crore a year earlier. Net profit more than doubled to Rs 77.51 crore in FY23 from Rs 35.74 crore in the preceding financial year.DAM Capital Advisors, ICICI Securities, and Keynote Financial Services are the book-running lead managers to the public issue. The equity shares are proposed to be listed on the BSE and the NSE.