TCNS Clothing Co. Limited Ipo

About Company

Incorporated in 1997, Delhi based TCNS Clothing Co. Limited is India's leading women's branded apparel company in terms of the total number of exclusive brand outlets as of November 2017, according to Technopak. The company design, manufacture, market, and retail a wide portfolio of women's branded apparel across multiple brands. It sells its products across India and through multiple distribution channels. As of September 30, 2017, the company sold its products through 418 exclusive brand outlets, 1,305 large format store outlets and 1,361 multi-brand outlets, located in 29 states and two union territories in India. It also sold its products through six exclusive brand outlets in Nepal, Mauritius, and Sri Lanka. In addition, it sells its products through its own website and online retailers.

TCNS's product portfolio includes top-wear, bottom-wear, drapes, Combination-sets and accessories that cater to a wide variety of the wardrobe requirements of the Indian woman, including every-day wear, casual wear, work wear and occasion wear.

Over the years, the company expanded its brand portfolio to three brands, each positioned to cater to well-defined needs of their respective target consumers-

1.   'W'   is a premium fusion wear brand, which merges Indian and western sensibilities with an emphasis on distinctive design and styling. This brand is targeted primarily at the modern Indian woman's work and casual wear requirements. W has been recognized as the 'IMAGES Most Admired Fashion Brand of the Year: Women's Indianwear' by India Fashion Forum consecutively for past three years between 2015 to 2017. As of September 30, 2017, W had 258 exclusive brand outlets and 676 large format store outlets located across 148 cities in India and five outlets outside India. Revenue from sales of products under brand W grew at a CAGR of 48.67% during Fiscals 2013 to 2017 and accounted for ₹ 4,399.62 million, or 61.23% of the revenue from operations (net), for Fiscal 2017, and ₹ 2,461.36 million, or 57.49% of the revenue from operations (net) for the six months ended September 30, 2017.

2.      Aurelia is a contemporary ethnic wear brand targeted at women looking for great design, fit and quality for their casual and work wear requirements. As of September 30, 2017, Aurelia had 159 exclusive brand outlets and 629 large format store outlets located across 149 cities in India and one outlet outside India. Revenue from sales of products under brand Aurelia grew at a CAGR of 70.82% during Fiscals 2013 to 2017 and accounted for ₹ 2,180.85 million, or 30.35% of the revenue from operations (net), for Fiscal 2017, and ₹ 1,439.04 million, or 33.61% of the revenue from operations (net), for the six months ended September 30,2017.

3.      Wishful is a premium occasion wear brand, with elegant designs catering to women's apparel requirements for evening wear and occasions such as weddings, events, and festivals. TCNS has been leveraging its W store network for selling Wishful products, however, it recently launched its first exclusive brand outlet for Wishful, in September 2017. Revenue from sales of products under brand Wishful grew at a CAGR of 66.66% during Fiscals 2013 to 2017 and accounted for ₹ 604.60 million, or 8.41% of the revenue from operations (net), for Fiscal 2017, and ₹ 381.13 million, or 8.90% of the revenue from operations (net), for the six months ended September 30, 2017.

The company has 2,789 employees on its payroll.

Strengths-

1.       Strongly positioned to leverage growth in the women's apparel industry in India.

2.       Leading women's apparel company in India with a portfolio of established brands.

3.       Widespread distribution network and presence across a variety of retail channels.

Company Promoters

1.      Onkar Singh Pasricha

2.      Arvinder Singh Pasricha 

Company financial

(Rs in millions)

Registrar to the issue

1.       Karvy Computershare Private Limited

Lead Managers

1.       Kotak Mahindra Capital Company Limited

2.       Citigroup Global Markets India Private Limited

Objects of the Issue:

The objects of the Offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges and for

the sale of up to 15,714,038 Equity Shares by the Selling Shareholders. Further, the Company expects that listingof the Equity Shares will enhance the visibility and brand image and provide liquidity to the shareholders. The listing will also provide a public market for the Equity Shares in India. The Company will not receive any proceeds from the Offer and all the proceeds will go to the Selling Shareholders, in proportion to the Equity Shares offered and sold by the respective Selling Shareholders in the Offer for Sale.

Risk factors

1.      This being the first public issue of our Company, there has been no formal market for the Equity Shares.

2.    Investments in equity and equity-related securities involve a degree of risk and investors should not invest any funds in the Offer unless they can afford to take the risk of losing their investment.