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CPS Shapers IPO entails to raise ₹11.10 crore comprising entirely of a fresh issue of 6 lakh shares at ₹185 per share. C P S Shapers IPO shall list on SME segment of the NSE.CPS Shapers manufactures a wide range of shapewear products for men and women, including body shapers, girdles, and compression garments.

About CPS Shapers Limited:

• CPS Shapers Limited is a shapewear manufacturer based in Maharashtra, India.
• It is primarily engaged in the business of manufacturing Shapewear for Men and Women.
• C P S Shapers Ltd manufactures and sells Shapewear for men and women through its brands “Dermawear” aC P S Shapers Ltd has a very wide product portfolio, which includes saree shapewear, mini shaper, sports bra, Mini corsets, tummy reducers, Active Pants, Denim, Mask, and other shapewear. The company boasts of a pan-India presence and its distributor network is spread across 28 states and 8 Union territories in India. It also has a robust export market and reaches out to 5 countries; including Canada, Germany, Australia, UK, and the US. W
• Company has one manufacturing facility situated at Meerut, two warehouses situated at Vasai, Maharashtra and Tiruppur, Tamil Nadu, respectively and one branch office situated at Tiruppur, Tamil Nadu and one virtual office situated at Bengaluru.
• The company has over 50 products in its catalogue, more than 6,000 retail presence counters, over 10 online sales channels, established presence in omnichannel selling as well as a strong presence in 6 countries.
• The company was founded by Rajendra Kumar and, Abhishek Kamal Kumar; with the intent to create a forward-looking brand that combines innovative designs with functionality and comfort.
• Dermawear started by introducing a range of stockings and shapewear, revolutionizing the way people perceive body shaping and support garments.

Product wise Disrtibution:

CPS Shapers IPO: Financials

CPS Shapers IPO: Salient Points

• C P S Shapers Ltd offers an array of meticulously crafted shapewear and athleisure clothing and caters to diverse body types and fashion preferences.
• The company currently sells the products via offline and online channels.
• Company’s brand viz. “Dermawear” and “YDIS” is well known in its respective product categories.
• Its product mix has evolved over the past several years and it has entered into new product categories. Its product portfolio currently includes Saree Shapewear, Mini Shaper, Sports Bra, All Mini Corset, Tummy Reducer, All Zenrik, Slimmer, Active Pants, Denim, Mask and other Shapewears.
• In Fy 23, Company has e also started supplying products to 5 countries namely Canada, Germany, Australia, United Kingdom, United States of America based on sales made for the financial year ended March 31, 2023 in a small way though for Fiscal 2023, 2022 adomestic market accounted for 97.64 % of its sale.
• Company intends to utilize the Net Proceeds for the following objects ( Rs. Lacs)

• Of the revenue from operations for the financial year ended March 31, 2023, 2022 and 2021, the top 10 customers contributed approximately 72.03%, 73.86% and 75.97%, respectively.
• It follows both online and offline sales model for supply of our products and our products are registered on various online platforms such as Amazon, Ajio, Flipkart, Myntra, Nykaa Fashion, Nykaa Retail, Snapdeal and through our own website, www.dermawear.co.in. For the Fiscals 2023, 2022 and 2021 the revenue from online sales was ₹ 1,272.19 Lakhs, ₹ 901.18 Lakhs and ₹ 612.22 Lakhs which contributed 34.56%, 33.77% and 42.54%, respectively of its revenue from operations and revenue from offline sales was ₹ 2,409.26 Lakhs, ₹ 1,767.17 Lakhs and ₹ 826.90 Lakhs, respectively which contributed 65.44%, 66.23% and 57.46% respectively of revenue from operations.
• Peers mentioned by company are quite big and reputeted vis-a-vis its size. A comparison with companies indicated in RHP.

• Working capital requirement of the company are high and it has taken unsecured loan from HDFC Bank, Axis Bank, ICICI Bank, Bajaj Finance Limited, IndusInd Bank, Fedbank Financial Services etc.
• The CPS Shapers IPO is being offered at PE ratio of 15.6x (fy23 earnings).
• Shreni Shares Private Limited is the lead manager with quite a decent record of good listing and performance subsequently. Past issues handled by them include AccelerateBS India Limited, Global Pet Industries Limited, Veefin Solutions Limited, Sancode Technologies Limited, Bright Outdoor Media Limited, Srivasavi Adhesive Tapes LimitedS, Arihant Academy Limited, PNGS Gargi Fashion Jewellery Limited, DAPS Advertising Limited, Olatech Solutions Limited etc.
• The company had a negative networth in the last FY.
• I intend to apply in CPS Shapers IPO subject to availability of funds.
• CPS Shapers IPO GMP as reported on social media has been around Rs. 80.
• Being small in size CPS Shapers IPO could see good subscription even as there are some excellent competing issues like Basilic Fly Studio IPO, lined up just after this IPO.
• SME IPO are quite illiquid and volatile and exit options sometimes is delayed.
• Please treat above coverage for learning purpose only.

Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.