TCNS IPO: Shareholders of TCNS Clothing are selling up to 1,57,14,038 equity shares.TCNS Clothing Co Ltd (TCCL), which owns women's wear brands W, Aurelia and Wishful, launched an initial public offer (IPO) on Wednesday.
the TCCL IPO, estimated at Rs 1,125.12 crore, will close on July 20.
TCNS Clothing designs, manufactures, markets and retails a wide portfolio of women's branded apparel.
TCNS Clothing sells its products across the country through multiple distribution channels.
As on March 31, 2018, TCNS has a distribution network of 465 exclusive brand outlets in the woman apparel category, 1,469 large format store outlets and 1,522 multi-brand outlets.Out of the total 1.09 crore on offer, only 0.05 times were subscribed by 1 pm, according to data from National Stock Exchange (NSE).
TCNS IPO can be subscribed in lots of 20.TCNS IPO objectiveTCCL will not receive any proceeds from the offer and all the proceeds will go to the selling shareholders.Three product lines of TCNS ClothingW is a premium fusion wear brand, which merges Indian and western sensibilities with an emphasis on distinctive design and styling.
The brand is targeted primarily at the modern Indian woman's work and casual wear requirements, according to the company's website.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 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.Details of TCNS Clothing IPOIssue Date18th July-20th July 2018Price Band714-716/ShareBid Lot20 in multiples thereofFace ValueRs 2/ShareListingBSE, NSEOffer For Sale15,714,038 Equity SharesFresh IssuePre Issue Eq Shares 61,318,124 Eq SharesPost Issue Eq Shares61,318,214 Eq sharesBook running lead managersKotak Mahindra CapitalCitigroup Global MarketsIndia Private LtdRegistrarKarvy ComputersharePrivate LtdTCNS Clothing IPO: Brokerages' tell the negativesHDFC Securities said that TCNS is unable to anticipate and respond to changes in fashion trends.
Besides, the company is unable to effectively manage or expand its retail network.Angel Broking said that TCNS Clothing's above industry gross margin (55-60 per cent) could be dented by value focused fashion retailers and the high premium enjoyed by its brands may not be sustainable.
Besides, the brokerage also cited promoters' stake coming down to 32 per cent after TCNS IPO from pre-IPO stake of 44 per cent as one of the concerns.
TCNS Clothing IPO: What brokerages think Among the many strengths of TCNS is its wide distribution network and the fact that it is strongly positioned to leverage growth in the women's apparel industry in the country, according to HDFC Securities.Angel Broking said that TCNS has an early-mover advantage in the women's apparel business which helped in establishing strong brands and generating industry above gross margins.
The brokerage has a 'Neutral' call on TCNS Clothing IPO.Hem Securities said that TCNS Clothing's business model relies on the strength of its design process, distribution and retail network and its long standing relationships with vendors.
Hem Securities recommended a "Long Term Subscribe" call on TCNS IPO or issue.