by Suman Gupta
Sleepwear-focused company S D Retail Limited’s Initial Public Offering to open on Friday, September 20, 2024, price band set at Rs. 124/- to Rs. 131/- per Equity Shares
- Price Band of Rs. 124/ – Rs. 131/- per equity share bearing face value of Rs. 10/- each (“Equity Shares”).
- Issue size: Rs. 64.98 Cr (upper price band).
- The IPO will open for subscription on Friday, September 20th, 2024 and close on Tuesday, September 24th, 2024
- Lot Size: 1000 Equity Shares
- QIB Quota: 23,54,000 Equity Shares (Including Anchor Reservation)
- HNI Quota: 7,07,000 Equity Shares
- Retail Quota: 16,49,000 Equity Shares
- Market Maker Portion: 2,50,000 Equity Shares
Ahmedabad-based Sleepwear-focused company S D Retail Limited (“The Company”) is in the business of designing, manufacturing, outsourcing, marketing, and retailing sleepwear under the brand name “SWEET DREAMS”. The company has fixed the price band of Rs. 124/- to Rs. 131/- per Equity Share of face value Rs. 10/- each for its Initial Public Offering (“IPO” or “Offer”). Retail Investors, HNIs, and QIBs can bid for IPO from Friday, September 20th, 2024, to Tuesday, September 24th, 2024.
The proceeds from its fresh issuance worth Rs 16.48 crore will be utilized for Capital expenditure to be incurred by the Company for setting up new exclusive brand outlets (“EBOs”), Rs 35 crore for Funding Working Capital Requirements, and the rest for general corporate purposes.
The Company offers a diverse range of stylish and comfortable sleepwear for the entire family, celebrating the transition from work to home life and addressing every aspect of leisure time. By combining comfort, style, and functionality, SWEET DREAMS has carved out a unique position in a habitual apparel category, with customers wearing its clothes daily.
The brand primarily targets modern Indian women’s sleepwear needs, as this demographic is highly engaged with the category across various retail channels. Additionally, S D Retail Limited provides sleepwear for men and children, whose casual attire is often purchased by women in the household. The company boasts one of the broadest selections of sleepwear among Indian apparel retailers, offering a variety of fabrics, colours, and styles, including pyjamas, night sets, nighties, and T-shirts.
The company sells its products through distributors, exclusive brand outlets (EBOs), and multi-brand outlets (MBOs) across various states and union territories in India. Its products are also available on e-commerce platforms like Myntra, AJIO, Nykaa, Flipkart, Amazon, and the company’s own website, enabling sales both domestically and internationally. The company has an established track record of around 20 years, and the Promoter and Managing Director, supported by an experienced team, have been instrumental in their growth.
The company tends to strengthen its leadership position in the sleepwear market and focus on additional product launches, expand its retail network with a focus on EBOs, leverage technology to shift towards D2C sales and strengthen its online presence by capitalizing on the e-commerce trend.
S D Retail clocked a profit of Rs 7.59 crore in the financial year FY24 as compared to a net profit of Rs 4.3 crore in FY23. Revenue from operations had increased by 20.34% from Rs 135.08 crore in FY23 to Rs 162.55 crore in FY24, primarily due to an increase in sales of products & Export Incentive during the year, EBO’s business, LFS business, Online business, doing well as compared to FY23.
Beeline Capital Advisors Private Limited is the sole book running lead manager, and KFIN Technologies Limited is the registrar of the issue.
IPO Company Overview:
Name: SD Retail Limited
Industry: manufactures, outsources, markets, and retails sleepwear under the brand name “SWEET DREAMS”
Legacy (Age): 20 years (Founded in 2004)
Market Cap After IPO (approx.)(cr.): 245
Net Worth After IPO (approx.)(cr.): 104
Promoter Holding After IPO (approx.): 65%
P/E Ratio After IPO (approx.): 33
P/B Ratio After IPO (approx.): 2
Key IPO Details:
Opening Date: September 20, 2024
Closing Date: September 24, 2024
Price Band: ₹124 to ₹131 per share
Lot Size: 1000
Issue Size: 65
Reason for the IPO: The company is raising funds to support its business expansion, improve working capital, and for general corporate purposes.
