Kizi Apparels Ltd IPO: Review, Valuation, Opening Date & GMP

Kizi Apparels Limited IPO - Complete Overview

Kizi Apparels Limited IPO an SME IPO is a fixed price issue of Rs.5.58 crores by Kizi Apparels Limited which was established in March 2023 and engages in the manufacturing and distribution of ready-to-wear apparel via its showrooms, distributors, shopping centers, and internet platform.

India being the world's second-biggest maker of multimode fiber (MMF), cotton, and silk supplies around 70% of the world's jute crop, making it the global leader in this area. It is projected that the industry will generate US$ 250 billion by FY25, growing at a CAGR of 12% between FY22 and FY25.

The company has opened an online storefront selling high-end Western and ethnic women's clothing brands, ANUTARRA and KIZI, respectively. With its internet platform, the organization serves customers throughout India. The company's product line includes Kurti Sets, Churidar, Co-Ord Sets, Semi-formal Balzers, Shirts, Blouses, Tops/Tunics, Dresses, Palazzo, Skirts, And Dupattas.

Except for the corporate directors, as of June 30, 2024, the organization employed a total of 18 people permanently in a variety of divisions.

The company plans to launch its SME IPO on July 30, 2024.

 

Kizi Apparels Limited IPO Overview

Kizi Apparels IPO (Kizi IPO) of Rs.5.58 crore comprises a wholly Fresh Issue of 26.58 lac Shares (amounting to Rs.5.58 crores). This SME IPO will be available to investors on July 30, 2024, and conclude on August 1, 2024. The anticipated listing date for the IPO is Tuesday, August 6, 2024, and will be held on the BSE and SME. The price range of each Share is Rs.21.

If you want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

The company's revenue increased by 30.84%, while profit after tax (PAT) increased by 31.36% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year ending March 31, 2024.

• The total revenue of the company is Rs.2,027.37 lac.

• The net worth of the company is Rs.587.49 lac.

• The total assets of the company are Rs.1,340.30 lac.
  
  

(Amount in Lac)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	1,340.30	1,135.10	725.14
Total Revenue	2,027.37	1,549.50	539.17
PAT	72.21	54.97	20.64
Net Worth	587.49	394.86	336.95
Reserves & Surplus	71.37	-	-
Borrowing	514.61	310.96	242.73

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in Lac)

Net Cash Flow In Multiple Activities	30 Jun 2023	31 Mar 2023
Net Cash Flow Operating Activities	-653.37	-1.0
Net Cash Flow Investing Activities	-155.75	-
Net Cash Flow Financing Activities	826.66	1.0

The Objective Of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Repayment of unsecured Loans.

• Meeting Public Issue Expenses.

• Financing the company's long-term need for working capital.

• Corporate Purposes.

 

Peers of Kizi Apparels Limited

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Thomas Scott (India) Limited	10	5.22	25.54
Bizotic Commercial Ltd	10	4.92	12.11

 

Evaluation

The price of this IPO is Rs.21 for each Share.

Evaluation Of P/E Ratio

Considering the FY ended 31 March 2024, with EPS of Rs.1.40 from the last year, the resulting P/E ratio is 15.01x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is not available in the DRHP or RHP.

Hence no comparison can be made regarding the valuation of the company’s IPO pricing with its industry average.

IPO's Strengths

• Quality: The company’s dedication to providing unparalleled quality is non-negotiable. The company is committed to creating clothing that embodies its brand and stands the test of time.

• Innovation: The company considers innovation as a motivating factor that helps it develop and adjust in a sector that is changing quickly. Its commitment to keeping on the cutting edge guarantees that it provides novel viewpoints on fashion.

• Integrity: Relationships with partners, clients, and stakeholders are based on honesty and openness. In all of its interactions, the company upholds the highest ethical standards.

• Empowerment: The company intends women to feel more in control of their wardrobe choices. It designs clothing that inspires women to value their individuality and to express themselves with confidence.

• It supports the development of win-win alliances that benefit all parties in the long run.

• Its success is largely dependent on developing solid bonds of mutual respect and trust.
  
  

IPO’s Weaknesses

• For the delivery of raw materials from suppliers and ready-made clothing to its clients and business partners, the company relies on outside transportation service providers. If these transport service companies don't fulfill their responsibilities, it might have a significant negative impact on their business.

• The company bears the risk that customers would reject its items due to flaws, which might lead to bad press or a negative impact on its brand image.

• The company relies on promptly recognizing changing fashion trends and developing fresh ideas. Any delay on the company's part in this respect might harm its business.

• In past years, the company has had negative cash flows. Future operating losses or negative cash flows might harm its financial situation, liquidity, and operational performance.

 

IPO GMP Today

The Latest GMP of Kizi Apparels Limited IPO is Rs.5.

 

Kizi Apparels Limited IPO Timetable (Tentative)

The IPO is scheduled from July 30 to August 1, 2024, with allotment on August 2, 2024 refund initiation on August 5, and listing on August 6, 2024.

Events	Date
IPO Opening Date	July 30, 2024
IPO Closing Date	August 1, 2024
IPO Allotment Date	August 2, 2024
Refund Initiation	August 5, 2024
IPO Listing Date	August 6, 2024

 

Kizi Apparels Limited IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on July 30, close on August 1, and offer a total issue size of 2,658,000 Shares (aggregating up to Rs.5.58 Cr) comprising a whole fresh issue size of 2,658,000 Shares (totaling up to Rs.5.58 Cr).

IPO Opening & Closing Date	July 30, 2024 to August 1, 2024
Face Value	Rs.10 per Share
Issue Size	2,658,000 Shares (totaling up to Rs.5.58 Cr).
Offer For Sale	NA
Fresh Issue	2,658,000 Shares (totaling up to Rs.5.58 Cr).
Listing At	BSE, SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Kizi Apparels Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (6000 Shares) amounting to Rs.126000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (12000 Shares) amounting to Rs.252000.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Kizi Apparels Limited IPO Reservation

Market Maker Portion	5.19%
Retail Portion	47.40%
Other Portion	47.40%

 

Promoters And Management Of Kizi Apparels Limited IPO

• Abhishek Nathani

• Kiran Nathani

Pre-Issue Promoter Shareholding	85.36%
Post-Issue Promoter Shareholding	56.35%

 

Kizi Apparels Limited IPO Lead Managers

• Interactive Financial Services Ltd.
  
  

 

Dividend Policy

The company has no formal dividend policy.

 

Conclusion

The company has experienced negative cash flow in operating and investing activities throughout the last few fiscal years. To achieve its goals, the company is currently launching an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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