Approximately 15,714,038 equity shares will be offered at a price band of Rs 714 to Rs 716 per equity share in the market
TCNS Clothing, the maker of women's ethnic wear sold under brands like W, Aurelia and Wishful, is looking to raise over Rs 1,125 crore through an initial public offer (IPO). The offer largely comprises partial divestment of shareholding in the company by promoter group, other shareholders and private equity investor Wagner Ltd (a unit of TA Associates).
Speaking with DNA Money, Anant Kumar Daga, managing director of TCNS Clothing Co Ltd, said, the public offer is mainly to make a better position for the company and the apparel brands in the market while also attracting and retaining quality talent. "We are a debt-free company with enough cash and internal accruals to fund capital expenditure required to expand retail footprint in the future. Going public will also give us access to capital for future expansion as and when required," said Daga.
Approximately 15,714,038 equity shares will be offered at a price band of Rs 714 to Rs 716 per equity share in the market. In total, the offer shall constitute up to 25.63% of the post-offer paid-up equity share capital of the company. The IPO will open on July 18 and close on July 20, 2018. The equity shares will be listed on BSE and NSE. After the share sale exercise is over, promoter shareholding will be down to 32.4% from 43.7% and stake held by TA Associates (Wagner) will decline to 29.4% from 40.7%.
According to Venkatesh Tarakkad, group chief financial officer, TCNS Clothing Co Ltd, the 465-odd EBOs are operated through a mix of owned and franchised stores in the 60:40 ratio.
"Typically, our store opening run rate is around 80 stores between the three brands. While W and Aurelia have been the market for long, Wishful is a fairly new offering. The capex for a 1,000 square feet store is around Rs 30 lakh excluding three to four months of inventory. Our stores typically breakeven in 18 to 20 months from getting operational," he said adding that its products are also sold through over 1,450 LFS outlets and over 1,522 MBO outlets across India.
The company, which only operates in ethnic and fusion apparels for women, is sitting on over Rs 70 crore in cash and registered a turnover of Rs 850 crore as on March 311, 2018 growing about 20% on year.
Its brands W, Aurelia and Wishful are sold across India and the sub-continent (Sri Lanka, Nepal, Mauritius) through a combination of exclusive brand outlets (EBOs), large format stores (LFS) multi-brand outlets (MBOs) and various online channels including e-marketplaces operated by Amazon and Flipkart.
weaving funds
- Rs 850 crore turnover the firm registered, growing about 20% on year
- Rs 70 crore+ cash the company is sitting on; it only operates in ethnic and fusion apparels for women
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