By Sunil Shankar Matkar
Mufti brand jeans owner Credo Brands Marketing and Ahmedabad-based retail jeweller RBZ Jewellers have received approval from the capital markets regulator Sebi to go ahead with their IPO plans. Credo Brands is planning to raise funds only via an offer-for-sale (OFS) of 1.96 crore equity shares and there is no fresh issue component in the issue.
In total, there are eight selling shareholders in the OFS including promoters Kamal Khushlani, Poonam Khushlani, and Sonakshi Khushlani.
The Sebi has issued observation letter on the draft papers filed by the company, on October 6. In Sebi’s parlance, obtaining observation means the company can start the IPO launch process.
Mumbai-based Credo, which has filed IPO papers with the regulator on July 13 this year, claimed to be among the largest homegrown brands in the mid-premium and premium men’s casual wear market in India in terms of market share in FY22.
The Mufti brand owner had recorded robust earnings performance in the past years with net profit in FY23 growing by 117 percent to Rs 77.51 crore and revenue increasing by 46 percent to Rs 498.2 crore compared to previous year.
DAM Capital Advisors, ICICI Securities, and Keynote Financial Services are the book running lead managers to the issue, while Link Intime India is the registrar to the offer.
Meanwhile, RBZ Jewellers, which had filed draft papers with the Sebi in June this year, intends to raise funds only via fresh issue component comprising 1 crore shares, and there is no offer-for-sale portion in the offer. This means the entire issue proceeds, excluding IPO expenses, will go to the company.
The gold jewellery manufacturer will spend Rs 80.75 crore for working capital requirements through its fresh issue funds, and the remaining money for general corporate purposes.
The Gujarat-based B2B and retail jewellery company, which designs and manufactures a wide range of antique gold jewellery comprising jadau, Meena and Kundan work, may be raising around Rs 100 crore via IPO, as per market sources.
Its customer base in wholesale business is spread across 19 States and 72 cities within India. It also operates its retail showrooms under the brand name Harit Zaveri.
RBZ financials
RBZ has reported net profit of Rs 22.33 crore for the year ended March FY23, increasing sharply from Rs 14.4 crore in previous year, while revenue from operations during the same period jumped from Rs 252.1 crore, to Rs 287.9 crore.
The Sebi has issued observation letter on the IPO on September 28, as per the processing status of draft offer documents released by the regulator.
Arihant Capital Markets is the sole merchant banker to the issue, while Bigshare Services is the registrar.