Quiet debut: TCNS Clothing shares fall 2% on listing after strong IPO

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Published: July 30, 2018 10:19:15 AM

TCNS Clothing listing: Shares of TCNS Clothing made a muted debut on the bourses, and fell to Rs 701 on NSE, down by more than 2% as compared to its issue price.

TCNS Clothing IPO was subscribed 5.41 times totally, with investors bidding for 5.69 crore shares against the 1.09 crore shares offered to them.

TCNS Clothing listing: After a relatively strong response for its public offer earlier this month, the shares of TCNS Clothing made a quite debut on the bourses, and soon fell to Rs 701 on NSE this morning, as compared to the issue price of Rs 701.  

Notably, TCNS Clothing IPO was subscribed 5.41 times totally, with investors bidding for 5.69 crore shares against the 1.09 crore shares offered to them. Qualified institutional buyers bid 13.46 times the shares offered to them, high net-worth individuals 5.07 times and retail investors bid 0.47 times.

TCNS Clothing had set a price band of Rs 714 to Rs 716 per share for its initial public offering (IPO). TCNS Clothing sells women’s wear under the brand name W, Aurelia and Wishful. The W brand, which is a fusion wear brand had shown a robust performance, and grew at a CAGR of 23.3% during fiscals 2016 to 2018, accounted for Rs 485 crore. While revenue from sales of products under brand Aurelia grew at a CAGR of 47.80% during fiscals 2016 to 2018 and accounted for Rs 283.7 crore and Wishful , which is an occasion wear brand, grew at a CAGR of 39.7% during fiscals 2016 to 2018 and accounted for Rs 73 crore of revenue.

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TCNS Clothing had appointed Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Pvt Ltd as the book running lead managers to the issue while Karvy Computershare is the registrar to the TCNS Clothing IPO.

“At this valuation, the issue seems fully priced. TCNS is positioning its brands to carve a niche for itself in terms of comfort, fit and concepts of products. The company is looking at capitalising on the opportunity in the Indian women’s apparel industry and capture market share by strengthening its brand portfolio. Given the mature valuations and growth prospects, one can subscribe to the issue from a long-term perspective,” Centrum Broking said in a note.

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