SD Retail IPO Overview
SD Retail, a prominent player in the sleepwear market with its popular brand ‘Sweet Dreams,’ made a remarkable debut on the SME platform of the National Stock Exchange (NSE) today. The company’s IPO attracted considerable interest, garnering bids that exceeded 97 times the available shares. Issued at a price of ₹131, SD Retail’s shares opened at ₹145.00, offering initial investors a listing gain of 10.69%. Following this successful entry, the stock further soared to the upper circuit limit of ₹152.25, translating to a commendable profit of 16.22% for IPO investors.
Strong Subscription and Investor Interest
The IPO, valued at ₹64.98 crores, was open for subscription from September 20 to September 24. It witnessed an overwhelming response, with an overall subscription rate of 97.08 times. Breaking down the participation, Qualified Institutional Buyers (QIB) subscribed 69.84 times, Non-Institutional Investors (NII) oversubscribed by an impressive 207.62 times, while retail investors showed significant interest with a subscription rate of 65.25 times. The IPO offered 49.60 lakh new shares, each with a face value of ₹10.
Use of Proceeds
The capital raised through the IPO will be pivotal for SD Retail as it plans to set up new exclusive brand outlets, fulfill working capital requirements, and address general corporate needs. This strategic move is expected to enhance the company’s footprint in the retail market.
Company Background and Financial Performance
Established in May 2004, SD Retail is well-known for manufacturing and selling sleepwear for all ages, with a well-established international presence. The company’s financial journey has been dynamic, as reflected in its profit trajectory. In the fiscal year 2022, SD Retail reported a net profit of ₹10.11 crores, which saw a downturn to ₹4.30 lakhs in the fiscal year 2023. However, the company rebounded in fiscal year 2024, increasing its profit to ₹7.60 crores. During this timeframe, SD Retail’s revenue showcased a compound annual growth rate (CAGR) of over 12%, reaching ₹163.28 crores, although the company’s debt rose significantly from ₹18.44 crores to ₹43.55 crores.
Financial Highlights
| Fiscal Year | Net Profit (₹ Crores) | Revenue (₹ Crores) | Debt (₹ Crores) |
|---|---|---|---|
| 2022 | 10.11 | 145.30 | 18.44 |
| 2023 | 0.04 | 154.12 | 25.40 |
| 2024 (Projected) | 7.60 | 163.28 | 43.55 |
Conclusion
SD Retail’s recent IPO not only highlights the company’s potential in the growing sleepwear market but also underscores the robust investor confidence in its business model and future growth prospects. The successful listing and subsequent rise in share prices may pave the way for further expansions and improved financial health, keeping the interest of both institutional and retail investorspiqued. As SD Retail embarks on this new chapter, its commitment to quality products and strategic growth initiatives will be critical in sustaining investor excitement.
