Company is in the business of designing, manufacturing, outsourcing, marketing, and retailing sleepwear under the brand name “SWEET DREAMS”.SD Retail IPO intends to raise Rs 64.98 crores. The issue is entirely a fresh issue.
IPO opens
September 20, 2024
IPO Closes
September 24, 2024
IPO Size (Rs.)
₹₹64.98 Cr
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹124 to ₹131 per share
Minimum Lot
1000 Shares
Listing At
NSE SME
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
BRLM
Beeline Capital Advisors
Registrar
Kfin Technologies
Market Maker
Spread X Securities
About SD Retail IPO:
Company is in the business of designing, manufacturing, outsourcing, marketing, and retailing sleepwear under the brand name “SWEET DREAMS”. SWEET DREAMS is a sleepwear-focused company offering a wide portfolio of stylish and comfortable sleepwear for the entire family, celebrating the transition from work to home life and catering to every aspect of downtime.
They design products to cater to men and women across all age groups including kids (from age 2 Year to 16 Year) and fits that are suitable to various body types and physiques.
In addition, they are in adjacent categories such as loungewear, workout wear, athleisure, and work leisure pants.
Own factory is in Panam, near Ahmedabad. Considerable outsourcing as well.
The company’s promoters are Mr. Hitesh Pravinchandra Ruparelia and Mr. Utpalbhai Pravinchandra Ruparelia, M/s. Sweet Dreams Loungewear (India) LLP (Formerly known as Sweet Dreams Loungewear (India) Private Limited) and M/s. Grace Garments LLP
Financials : SD Retail IPO
Particulars (Rs. Lacs)
2024
2023
2022
Share Capital
125.11
62.56
62.56
Net Worth
4,179.98
3,420.22
2,990.04
Total Revenue
16,328.48
13,568.86
12,873.65
Profit after Tax
759.76
430.17
1,011.06
Net Asset Value
30.37
24.85
21.73
Total Borrowings
4,354.72
2,051.31
1,844.13
Post issue Share Capital
1872
FV
10.0
IPO price
131.0
EPS Fy23
2.3
PE Fy23
57.0
EPS Fy24
4.1
PE Fy24
32.3
Market cap in Lacs
24,523
Market cap / Sales
196.01
Anchor: SD Retail IPO
Salient Points: SD Retail IPO
The India sleepwear market is anticipated to reach market size of USD 1303.88 Million by 2029, with progressive CAGR of 15.12% by 2024-29. The sleepwear industry in India has witnessed significant growth over the past decade.
Net proceeds use:
S. No
Particulars
Amt. (₹ in Lakhs)
1.
Capital expenditure to be incurred by Company for setting up new exclusive brand outlets (“EBOs”)
1648.85
2.
Funding Working Capital Requirement
3500.00
3.
General Corporate Expenses
[●]
Out of Rs.64.98Cr raised, Rs.16.5Cr for Capex for 65 Exclusive Brand Outlets (EBO), Rs.35Cr for Working capital and rest for general and listing expenses.
A total of 35 EBOs are be launched in Fy25 and rest in Fy26. Another 25 new EBOs will be funded in 2026.
Business is primarily concentrated on the sale of women’s sleepwear
Fiscal 2024
Fiscal 2023
Fiscal 2022
Particular
Revenue
In %
Revenue
In %
Revenue
In %
Women
9266.73
57.04
6935.54
51.42
6547.11
50.96
Men
5361.09
33
5358.12
39.72
4681.12
36.44
Kids
1617.45
9.96
1195.7
8.86
1618.23
12.6
Company at one time used to manufacturer most of the products.. It has consciously ,moved towards a mix of own manufacturing and outsourced contract manufacturing (66%).
Currently there are 69 contract manufacturers working with the company. Own factory is in Panam, near Ahmedabad. The promoters seem highly committed and this business could be a winner Expansion of its own Exclusive Brand Outlets (EBO) should also aid growth.
Advertisement and sales promotion expenses stand at 4.79%
P/E ratio stands at ~32.2x, NPM 4.7%
P/E & Net profit margin of of Listed Peers:
GO Fashions 82.3x, 10.3%
Bella Casa, 57.0, 4.47 %
S P Apparels 25.5x, 8.54%
I intend to apply in SD Retail IPO. Company has laid lot of emphasis on building a brand and this should bear fruit. Expaniosn ofits own
GMP as reported on social media has been Rs. 40 (30%).
This post is exploratory and educational purposes only.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared 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.
