SD Retail Limited, a renowned brand in the sleepwear industry, is launching its initial public offering (IPO) from September 20, 2024, to September 24, 2024. The IPO aims to raise ₹64.98 crores through a fresh issue of 49.6 lakh shares. In this blog, we’ll delve into the details of the IPO, financial performance, and key features of the company.

Introduction to SD Retail Limited

Incorporated in May 2004, SD Retail Limited is known for designing, manufacturing, and retailing high-quality sleepwear under the brand "SWEET DREAMS." The brand caters to men, women, and children, providing stylish and comfortable loungewear that celebrates the transition from work to home life. SD Retail operates through various channels, including distributors, exclusive brand outlets (EBOs), multi-brand outlets (MBOs), and major e-commerce platforms like Myntra, AJIO, Nykaa, Flipkart, and Amazon.

SD Retail’s asset-light model allows it to scale efficiently, with operations both in India and internationally. As of May 31, 2024, the company employed 240 individuals across different departments.

SD Retail IPO Key Details

• IPO Date: September 20, 2024 – September 24, 2024
• Listing Date: Expected on September 27, 2024
• Price Band: ₹124 to ₹131 per share
• Lot Size: 1000 Shares
• Total Issue Size: 4,960,000 shares (₹64.98 Cr)
• Fresh Issue: 4,960,000 shares (₹64.98 Cr)
• Listing at: NSE SME

IPO Reservation

The IPO offers 49.6 lakh shares with specific allocations for different investor categories:

• Anchor Investors: 14,12,000 shares (28.47%)
• QIB: 9,42,000 shares (18.99%)
• NII: 7,07,000 shares (14.25%)
• Retail Investors: 16,49,000 shares (33.25%)
• Market Maker: 2,50,000 shares (5.04%)

Important IPO Dates (Tentative)

• IPO Open Date: Friday, September 20, 2024
• IPO Close Date: Tuesday, September 24, 2024
• Basis of Allotment: Wednesday, September 25, 2024
• Initiation of Refunds: Thursday, September 26, 2024
• Credit of Shares to Demat: Thursday, September 26, 2024
• Listing Date: Friday, September 27, 2024

SD Retail IPO Lot Size

The minimum investment required for retail investors is ₹131,000 for 1 lot of 1000 shares. HNI investors can apply for a minimum of 2 lots (2,000 shares) with an investment of ₹262,000.

Promoter Details

The promoters of SD Retail Limited are:

• Mr. Hitesh Pravinchandra Ruparelia
• Mr. Utpalbhai Pravinchandra Ruparelia
• M/s. Sweet Dreams Loungewear (India) LLP
• M/s. Grace Garments LLP

Company Financials

SD Retail Limited’s financial performance has seen impressive growth over the past few years. Below are the key financial metrics:

Key Performance Indicators (KPI) as of March 31, 2024

• Return on Equity (ROE): 6.29%
• Return on Capital Employed (ROCE): 15.61%
• Debt to Equity Ratio: 1.04
• Return on Net Worth (RoNW): 18.18%
• Price to Book Value (P/BV): 4.31
• Profit After Tax (PAT) Margin: 4.67%

Objectives of the SD Retail IPO

The proceeds from the IPO will be used for the following purposes:

1. Setting up new exclusive brand outlets (EBOs) to expand the company’s retail presence.
2. Funding working capital requirements for smooth business operations.
3. General corporate purposes to enhance business activities and long-term growth.

Conclusion

SD Retail Limited, with its well-established presence in the sleepwear industry, asset-light business model, and consistent financial growth, is set to raise ₹64.98 crores through its IPO. With plans to expand its retail presence and capitalize on growing demand, the IPO presents an exciting opportunity for investors. Keep an eye on the subscription window from September 20 to September 24, 2024, and mark your calendars for the listing date on September 27, 2024.