Credo Brands shares disappoint on D-St debut, list at 1% premium

Shares of Credo Brands Marketing Ltd made a muted debut at Dalal Street on Wednesday as the parent company of Mufti Menswear debuted at Rs 282.35, a premium of 0.84 per cent, at the National Stock Exchange (NSE), against the issue price of Rs 280 apiece. The scrip was listed at a premium of 0.71 per cent at Rs 282 on the BSE.

The listing has been on a contrast note to the signals from the grey market as Credo Brands, ahead of its listing, was commanding a premium of Rs 80-90 per share in the grey market, suggesting a listing pop of 28-33 per cent to the investors. However, the premium in the unofficial market was around Rs 130-140 before the bidding process kicked off.

Credo Brands sold its IPO in the price band of Rs 266-280 per share with a lot size of 53 shares, which was open for bidding between December 19 to December 21. The company aimed to raise a little about 550 crore from its primary offering, which was entirely an offer for sale (OFS) of up to 1,96,34,960 equity shares.

The issue was overall subscribed 51.85 times as the portion for qualified institutional bidders (QIBs) was booked a whopping 104.95 times, while the non-institutional investors' category was subscribed 55.52 times. The quota reserved for retail investors was subscribed 19.94 times during the bidding process.

Incorporated in 1999, Credo Brands Marketing, known for its flagship brand 'Mufti,' started its product line in 1998 with shirts, T-shirts, and trousers. Presently, it offers a diverse range of products, including sweatshirts, jeans, cargos, chinos, jackets, blazers, and sweaters.

DAM Capital Advisors (formerly IDFC Securities), ICICI Securities, and Keynote Financial Services served as the book running lead managers for the Mufti Menswear IPO, while Link Intime India acted as the registrar. 

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