Credo Brand Marketing (Mufti) IPO : Men's Fashion Evolution

Credo Brand Marketing, the brain behind Mufti menswear, initiates its IPO from December 19 to 21, 2023, offering shares at Rs. 266 to Rs. 280 each, aiming to raise Rs. 549.78 crore. With 25 years of evolution, Mufti spans a broad range of men's casual wear distributed across 1,807 touchpoints in 591 cities. Financially, the company showcases steady growth, but cautious evaluation of high P/E ratios against peers' averages deems it overvalued. Strengths in brand recognition, diversified offerings, extensive pan-India presence, and experienced leadership are countered by concentrated risks and market limitations. Investors are advised to conduct thorough research before investing

Dec 20, 2023 - 18:08

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Credo Brands Marketing Limited, the entity behind the men's fashion brand "Mufti," is launching its IPO from December 19 to December 21, 2023, at an issue price ranging from Rs. 266 to Rs. 280 per share. The total issue size is 19,634,960 shares, amounting to Rs. 549.78 crores.

Company Background:

Established in 1999, Mufti has grown significantly over 25 years, offering a diverse range of men's casual clothing from shirts and T-shirts to jeans, jackets, and more. With a distribution network across 1,807 touchpoints in 591 cities, Mufti caters to various fashion categories, including casual wear, party wear, and athleisure.

IPO Timetable:

IPO Opening Date: December 19, 2023
IPO Closing Date: December 21, 2023
Allotment Date: December 22, 2023
Listing Date: December 27, 2023

Strengths:

Brand Recognition: Mufti holds a strong 25-year presence in India.
Extensive Reach: A wide distribution network spanning various retail channels.
Scalable Model: Agile operations with in-house design and outsourced manufacturing.
Financial Stability: Demonstrated revenue growth and positive indicators.

Weaknesses:

Market Risks: Exposed to various market risks but not significantly affected.
Credit Concentration: High reliance on credit risk in trade receivables.
Limited Impact: No material price risk affecting the company's future.

The Mufti IPO presents an opportunity for investors but warrants thorough consideration of the risks and valuations. With its established brand, wide reach, and demonstrated financial stability, Mufti offers potential, yet investor caution and due diligence are advised before investing.

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