About the Company:
TCNS Clothing is India’s leading women’s branded apparel company in terms of total number of exclusive brand outlets. They design, manufacture, market and retail a wide portfolio of women’s branded apparel across multiple brands.
Company sells their products across India and through multiple distribution channels. Company sells products through 465 exclusive brand outlets, 1,469 large format store outlets and 1,522 multi-brand outlets, located in 31 states and union territories in India.
Company also sells their products through six exclusive brand outlets in Nepal, Mauritius and Sri Lanka. In addition,they also sell their products through their own website and online retailers.
Company’s product portfolio includes top-wear, bottom-wear, drapes, combination-sets and accessories that caters to a wide variety of the wardrobe requirements of the Indian woman, including every-day wear, casual wear, work wear and occasion wear.
Company focusses on creating innovative designs and optimizing fit and sizing, while emphasizing higher quality. For example, across two seasons in a twelve month period ending March 31, 2018, Company launched approximately 1,600 products in various sizes across product categories.
Company retails their products through large format stores, such as Pantaloons, Shoppers Stop and Lifestyle, online retailers like Myntra, Jabong and Amazon, among others, covering 1,469 outlets across 203 cities in 29 states in India as well as approximately 1,522 multi-brand outlets including through 21 distributors
Over the years, Company has expanded their brand portfolio to three brands, each positioned to cater to well-defined needs of their respective target consumers:
W (Premium fusion wear Brand)
W is a premium fusion wear brand, which merges Indian and western sensibilities with an emphasis on distinctive design and styling. This brand is targeted primarily at the modern Indian woman’s work and casual wear requirements.
As of March 31, 2018, W had 281 exclusive brand outlets and 717 large format store outlets located across 157 cities in India and five outlets outside India.
Aurelia (Contemporary Ethnic wear Brand)
Aurelia is a contemporary ethnic wear brand targeted at women looking for great design, fit and quality for their casual and work wear requirements. As of March 31, 2018, Aurelia had 183 exclusive brand outlets and 752 large format store outlets located across 184 cities in India and one outlet outside India.
Wishful (Premium occasion wear Brand)
Wishful is a premium occasion wear brand, with elegant designs catering to women’s apparel requirements for evening wear and occasions such as weddings, events and festivals. We have been leveraging our W store network for selling Wishful products, however, we recently launched our first exclusive brand outlet for Wishful, in September 2017.
Details of Each Brand:
Management Team:
- Mr. Onkar Singh Pasricha (Designation: Chairman and executive Director)
- Mr. Anant Kumar Daga (Designation: Managing Director)
- Mr. Naresh Patwari (Designation: Non-executive Director)
Special Thanks: We would like to thank Board of Directors of TCNS Clothing Company Ltd Ltd for inviting Markets Guruji Team to the IPO Press Conference.
Objectives of the Issue:
OFS: (Offer for Sale) (Around Rs.1125 cr )
- Company will not receive any proceeds from the Offer for Sale by the Selling Shareholders.
Positives for the Company:
Leading Women’s Apparel company in India with a Portfolio of Established brands.
Company is India’s leading women’s branded apparel company in terms of total number of exclusive brand outlets as of May 2018, according to Technopak. They are a pan-India and multi-distribution channel company catering to the apparel requirements of modern Indian women.
Revenue from sales of products under W, Aurelia and Wishful grew at a CAGR of 23.43%, 47.80% and 39.73%, respectively, during Fiscals 2016 to 2018.
Widespread Distribution Network and Presence across a variety of Retail Channels.
Over the years, Company has invested in establishing processes, teams and technology to manage our pan-India and multi-distribution channel retail presence.
Company sells their products through 3,456 points of sale comprising exclusive brand outlets, large format stores and multi-brand outlets located across cities in 31 states and union territories in India.
Company also sells their products through six exclusive brand outlets in Nepal, Mauritius and Sri Lanka, as well as through online retailers and our own websites.
Expand their Physical retail and online Presence:
Company seeks to expand their geographical footprint in order to access a more diversified customer base across geographies. Leveraging on their experience from their stores in Nepal, Sri Lanka and Mauritius, Company intends to open stores in other Asian countries such as Saudi Arabia, Kuwait, the UAE, Bahrain and Oman, which have a significant Indian diaspora.
Increase the range of their Products under Existing Brands.
In order to enhance and diversify their product offerings and cater to a larger proportion of Indian women’s wardrobe requirements, Company intends to continue to develop and launch additional.
For example, Company has recently launched a jewellery range at their outlets. Company also plan to selectively target the women’s accessories market with products such as footwear and fragrances.
Financials of the Company:
| (in Crores) | FY 14 | FY 15 | FY 16 | FY 17 | FY 18 |
|---|---|---|---|---|---|
| Revenue | 170.26 | 301.92 | 488.13 | 712.97 | 849.15 |
| Net Profit | 8.7 | 26.2 | (-41.4) | 15.79 | 98.09 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| TCNS Clothing Co. Limited | 2 | 15.36 | 46.61 | 22.74% | 76.54 |
| Aditya Birla Fashion and Retail | 10 | 1.52 | 97.70 | 10.78% | 14.17 |
| Future Lifestyle Fashions | 2 | 6.61 | 67.59 | 8.24% | 80.33 |
| Kewal Kiran Clothing Limited | 10 | 59.38 | 25.26 | 18.33% | 323.89 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 18th July 2018 |
| Issue Closes on:. | 20th July 2018 |
| Issue Price | Rs.714 – 716 |
| Face Value | Rs.2 |
| Minimum Lot | 20 shares |
| Minimum Investment | Rs.14,320 |
| Issue Constitutes | 25.62% |
| Issue Size | Rs.1125 cr |
| Market Cap | Rs.4390 cr |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 1,57,14,038 |
| Equity Shares Prior to the Issue | 6,13,18,124 |
| Equity Shares after the Issue | 6,13,18,124 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 25th July 2018 |
| Initiation of Refunds | on or Before 26th July 2018 |
| Credit of Equity Shares: | on or Before 27th July 2018 |
| Listing Date: | on or Before 30th July 2018 |
Subscription Details:
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 3,142,808 | 0.29 | 7.00 | 13.47 |
| NII | 2,357,106 | 0.01 | 0.09 | 5.08 |
| Retail | 5,499,914 | 0.03 | 0.07 | 0.57 |
| Employee | ——— | — | —- | —- |
| TOTAL | 10,999,828 | 0.10 | 2.06 | 5.22 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 15.36 | 46.61 | 22.74% | 76.54 |
Knowledge Corner: (Click on the Link)
| Check IPO Allotment Status: |
|---|
Karvy Website (Click on the below Link)http://kosmic.karvy.com:81/ipotrack/ |
| Company Contact Info: |
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| TCNS CLOTHING CO. LIMITED Unit No. 112, F/F Rectangle 1 D-4, Saket, District Centre New Delhi 110 017, India Tel: +91 11 4057 8384 Fax: +91 11 4079 3114 Website: www.wforwoman.com |
| IPO Registrar Info: |
|---|
| Karvy Computershare Private Limited Karvy Selenium Tower B Plot 31-32, Gachibowli Financial District Nanakramguda, Hyderabad 500 032 Telangana, India Tel: +91 40 6716 2222 Investor Grievance E-mail: tcns.ipo@karvy.com Website: www.karisma.karvy.com |
