Women’s apparel maker TCNS Clothing Company Ltd. will launch its three-day initial public offering next week as the promoters look to pare part of their stake.
The company, which owns brands like ‘W’, ‘Aurelia’ and ‘Wishful’, is looking to raise Rs 1,125 crore by selling shares at Rs 714-716 apiece. Promoters Onkar Singh Pasricha and Arvinder Singh Pasricha, along with Wagner Ltd. and other shareholders, will offload a 25.6 percent stake through the maiden offer, valuing the company at Rs 4,400 crore.
Kotak Mahindra Capital Company and Citigroup Global Markets India are the book-running lead managers for the issue.
- The IPO opens on July 18 and closes on July 20.
- The issue is a pure offer for sale.
- Bids can be applied for a minimum of 20 shares and its multiples.
The ethnic wear retailer, which sells apparel through multiple-distribution channels, has 465 rented brand outlets, 1,469 large-format stores and 1,522 multi-brand outlets across India.
The rent for these outlets comprise nearly 11 percent of the company’s total expenses, Managing Director Anant Daga said. But, “rent is not the only metric to look at business. What we look at is how quickly the assets will pay off.”
The company is looking to leverage all its distribution channels while focusing more on omni-retail that integrates the online and offline routes, Daga said. “There is an opportunity to add more brands—either buy or build.”