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TCNS Clothing Company Ltd. IPO Price, Allotment, Listing, subscription, GMP

TCNS Clothing Company Ltd. is coming with its Initial Public offer (IPO) on 18 July 2018 and shall remain open for subscription till 20 July 2018. It is an Offer for sale of up to 15,714,038 Equity Shares by the Selling Shareholders., the company shall not receive the proceeds. Kotak, Citi and Karvy are managing the issue.
TCNS is a Delhi based leading women apparel company and was established in 1997. It sells its products under the brand names “W”, “Aurelia” and “Wishful”.
W is a premium fusion wear brand, which merges Indian and western sensibilities with an emphasis on distinctive design and styling.
Aurelia is a contemporary ethnic wear brand targeted at women looking for great design, fit and quality for their casual and work wear requirements.
Wishful is a premium occasion wear brand, with elegant designs catering to womens apparel requirements for evening wear and occasions such as weddings, events and festivals.
The company’s market cap at ₹716 per share shall become ₹4390 crores at a PE of around 39x. Similar companies in this segment are Page industries (Jockey brand), Arvind Ltd, Aditya Birla Fashion, Trent, Kewal Kiran Clothing etc. Based on the PE multiples of similar companies and its financial performance, TCNS Clothing IPO appears to be fully priced.
TCNS Clothing Company Ltd. IPO details
Subscription Dates
18-20 July 2018
Price Band in Rupees
714 to 716
Minimum bid (lot size)
20 shares
Face Value 
Rs. 2 per share
Retail Allocation
35%
Listing On
NSE, BSE
Grey Market Premium (GMP)
Rs. 50-60
Branded Cloth market is increasing at a fast pace in India, hence the company may benefit out of this demand in near and medium term.
Competitive Strengths from RHP
1.  Strongly positioned to leverage growth in the womens apparel industry in India
2.  Leading womens apparel company in India with a portfolio of established brands
3.  Innovative and institutionalized product design process
4.  Widespread distribution network and presence across a variety of retail channels
5.  Longstanding relationships with suppliers and job workers
6.  Capital efficient and scalable business model
7.  Experienced, aligned and professional management team with strong organizational culture
Strategies of the company as per RHP
1.  Expand our physical retail and online presence
2.  Leverage marketing initiatives to increase brand recognition
3.  Expand and strengthen our brand portfolio
4.  Increase the range of our products under existing brands
5.  Improve operational efficiencies
Summary of risks from RHP
1.  Inability to anticipate and respond to changes in fashion trends and changing customer preferences in a timely and effective manner;
2.  Inability to maintain and grow our brand image;
3.  Inability to identify customer demand accurately and maintain an optimal level of inventory in our stores;
4.  Inability to effectively manage or expand our retail network;
5.  Current locations of our exclusive brand outlets becoming unattractive, and suitable new locations not available for reasonable prices;
6.  Failure to maintain relationships with third parties such as franchised exclusive brand outlets, large format stores, multi brand outlets and online retailers;
7.  Inability to obtain sufficient quantities or desired quality of products from job workers in a timely manner or at acceptable prices;
8.  Inability to procure adequate amounts of raw materials, at competitive prices; and
9.  Inability to compete effectively against existing or potential competitors.
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