CPS Shapers IPO to hit Dalal Street on August 29

On August 29, CPS Shapers, a maker of shapewear, will begin accepting subscriptions for its initial public offering. The offer price per share in this fixed price issuance is Rs 185.

Six lakh shares were issued to the public, representing 28.57 percent of post-issue paid-up equity. Of this total, 31,200 equity shares were allocated to the market maker, while the rest 5,68,800 were offered to other investors, such as retail investors and high-net-worth people.

Through this new issue, the textile firm hopes to raise Rs 11.10 crore in capital.

The net proceeds from the new issue will be used to invest in capital assets like machinery, trucks, and solar panels. The money will be used to upgrade the current IT software, pay down debt, meet working capital needs, and for other general company purposes.

The last day to submit an offer is August 31.

Abhishek Kamal Kumar and Rajendra Kumar founded CPS Shapers, which produces shapewear for both sexes under the names Dermawear and YDIS.

Distributors for the company can be found in all 29 Indian states and 8 union territories. According to FY23 financials, the company also exports its wares to markets like Canada, Germany, Australia, the UK, and the US.Listed competitors of CPS Shapers include Page Industries, Lux Industries, Dollar Industries, KPR Mill, and Arvind, which all traded at a PE of 12.58-78.85x as of the last reporting period. CPS Shapers is currently accessible for a PE of 11.28x on FY23 basis.

In the fiscal year that ended in March 2023, Dermawear, a shapewear manufacturer situated in Maharashtra, had its profit increase by 56.7% year-on-year to Rs 2.46 crore, while its revenue grew by 38.6% to Rs 36.8 crore. During the same time frame, the company's EBITDA (earnings before interest, tax, depreciation, and amortisation) grew by 101.3 percent to Rs 4.81 crore, with a margin expansion of 411 basis points to 13.07 percent.

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On September 8th, CPS Shapers will make their NSE SME Emerge debut.

The offer's registrar is Bigshare Services, while the issue's merchant banker is Shreni Shares.