Women's apparel maker, TCNS Clothing Company Pvt Ltd, will open its initial public offering (IPO) for subscription on July 18, with the price band of Rs 714-Rs 716 per equity share.
The offer will close on July 20. The shares will be listed on BSE as well as NSE on July 30.
TCNS promoters, Onkar Singh Pasricha and Arvinder Singh Pasricha, is expected to raise around Rs 1,100 crore from the IPO.
Kotak Investment Banking and Citi are the book running lead managers for the offer.
The IPO comprises of 1.57 crore of shares (15,714,038 shares) through an offer-for-sale (OFS) route, comprising up to 25.63 percent of equity in the company.
Analysing the IPO, Ambit Capital said, "Points at risks associated with single category brands in womenswear failing to scale up due to limited target audience and fashion risk despite TCNS being one of the most profitable of the small, emerging breed of Indian ethnic wear brands."
"The company has advantage of low competition and has posted impressive CAGR of 54 percent between FY13-17 and trebling its own-store network since FY13," Ambit Capital added.
Ambit Capital also questions sustainability of TCNS’ high gross margin of 63% despite own stores drawing only 30% of revenue. A price differential of up to 60% invites competition from value fashion players and new entrants, who can play truant.
Here’s an indicative timeline of the TCNS IPO:
Anchor date: July 17, 2018
Bid/offer opening date: July 18, 2018.
Bid/offer closing date: July 20, 2018.
Finalisation of basis of allotment (on or around): July 25, 2018.
Initiation of refunds (on or around): July 26, 2018.
Credit of equity shares i.e. settlement date (on or around): July 27, 2018.
Listing and trading of equity shares commences on BSE and NSE (on or around): July 30, 2018.
First Published: IST