Home » Market Spotlight » Here’s everything you need to know about Credo Brands IPO

Here’s everything you need to know about Credo Brands IPO

Credo Brands' Mufti invites you to be part of the dynamic fashion clothing sector. Read more to know if this IPO is for you.

Credo Brands IPO

The year-end of 2023 is a fascinating time for stock market enthusiasts, with new IPOs launching daily.

We are back to discuss the details of another IPO today. 

Are you a fashion lover? Do you prefer staying up to date with all the new fashion trends? If yes, Credo Brands IPO might be the right choice for you.

But hold on. There’s more to consider before you decide to buy the shares. So, let’s begin to examine Credo in different parameters. 

Who is Credo Brands?

Credo Brands is a clothing company specialising in fashionable clothing for men. The company works under the brand ‘MUFTI’ to produce expressive clothing for men, rescuing them from boring and monotonous outfits.

Also read: Textile industry in India – The foundation of fashionable clothing trendsttps

Credo Brands History

It was in 1992 when Kamal Khushlani, a film enthusiast, began sourcing looks for a portfolio shoot. The journey continued even after the shoot, and he established a full-fledged clothing brand.

He chose to name the brand ‘MUFTI’ because it means non-uniform wear. That was his purpose, too. He wanted to break boundaries and uniformity in men’s clothing.


Mufti is home to those who live to express themselves. And by being a strong voice, we hope to inspire more people to join our tribe. Mufti lives to inspire people to be expressive.

Credo Brands Marketing Pvt Ltd

MUFTI opened its first Exclusive Brand Outlet (EBO) in 2006 in Mumbai. Today, its products are available in 379 EBOs, 1305 MBOs (Multi Brand Outlets) and 89 departments. The brand procures over 4 million units annually from local and international sources.

MUFTI’s product category includes authentic, urban, relaxed casuals, and athleisure merchandise, covering jeans, polos, T-shirts, sweatshirts, blazers, chinos, etc.

Credo Brands financials

ParticularsFY 2023 (₹ million)FY 2022 (₹ million)FY 2021 (₹ million)
Revenue from operations₹4,981.82₹3,411.72₹2,448.26
Debt-Equity ratio0.650.440.62
Return on Equity29.98 %16.70 %1.81 %
Fixed Assets Turnover ratio9.798.645.83
Year-on-year growth in revenue from operations
46.02 %

39.35 %

(35.99) %

Credo Brands IPO details

Credo Brands IPO opening date19 December 2023
Credo Brands IPO closing date21 December 2023
Bidding date for anchor investors18 December 2023
Face value₹2 per share
Credo Brands IPO price bands₹266 to ₹280
Minimum lot55 shares
Issue size19,634,960 shares (Offer for sale)

IPO reservations
Anchor investors – 30%
Qualified institutional buyers – 20%
Non-institutional investors – 15%
Retail investors – 35%

Credo Brands Shareholding pattern before IPO

Major shareholdersShareholding percentage
Kamal Khushlani33.53%
Poonam Khushlani27.37%
Sonakshi Khushlani2.88%
Andrew Khushlani2.88%
Concept Communication Limited3.06%
Bennett Coleman and Co. Limited12.24%
Bela Properties Private Limited7.58%
Jay Milan Mehta2.97%
Sagar Milan Mehta2.97%

Fund utilisation plan

The issue type for Credo’s IPO is an offer for sale. So, all the proceeds received from the IPO will be paid as compensation to selling shareholders after deducting the expenses of the IPO.

The company aims to reap the benefits of getting listed on the stock exchange through this IPO and, in turn, enhance its visibility and brand value in the market.

Also read: The Indian fashion industry: A booming sector with huge potential

Credo Brands competitive strengths

Industry peers

Market capitalisation (₹ million)Revenue for FY 2023 (₹ million)EBIDTA (₹ million)EPS (₹) BasicReturn on capital employed
Credo Brands₹5,093.22₹1,638.50₹12.0628.16%
Aditya Birla Fashion and Retail Limited




Go Fashion (India) Limited₹73,060.65 ₹6,771.94₹2,122.86₹15.3317.72%
Arvind Fashions Limited




Kewal Kiran Clothing Limited




  • Mufti as a brand has been present since 1998, completing 25 successful years in India. What started with shirts and trousers has now evolved to include various clothing categories, and Credo constantly updates its style with the latest market trends.
  • Muftisphere, launched in 2014, is a customer loyalty programme meant to offer benefits to customers while shopping to increase their stickiness to Mufti.
  • Credo Brands has a pan-India presence, offering fashionable clothes to men nationwide. In September 2023, Credo had 44 EBOs in Central India, 76 EBOs in East India, 117 in North India, 61 in South India, and 106 in West India.
  • Credo follows an asset-light model. All its manufacturing operations have been outsourced, while the in-house teams focus thoroughly on designing to meet the changing demands of customers.
  • Except for the financial year 2021 when COVID impacted the business, Credo has displayed strong and consistent growth in revenue.
  • A strong team of promoters and senior management back the company. Kamal Khushalani, the founder who is now the promoter, comes with over 25 years of experience in the fashion field, and nine senior management members come with a total experience of 235 years across various industries.


  • The company purely focuses on men’s fashion clothing. Any change in demand or consumer preferences may impact the company, as it may take time to adapt and make changes. Since their manufacturing operations are outsourced, having the required number of trending units in their inventory may not be possible.
  • The company is heavily involved in transactions with related parties to operate their business efficiently. Disputes with these parties can hurt the business.
  • Credo operates under a single brand, ‘MUFTI’, and nearly 90% of its revenue has been from offline channels, as noticed in the last three financial years. Any impact on the brand name can harm the business. Also, the inability to increase online presence can be a disadvantage as most consumers prefer online shopping today.
  • Products like these are subject to constant reviews and criticisms by consumers. Negative reviews can affect the demand for Credo’s products.
  • The number of competitors entering the fashion clothing market is increasing daily. This can pressure Credo to reevaluate their prices, which may gradually affect the quality of the product.

Also read: India’s cosmetic industry analysis

Subscription so far

As of Day 3 of the IPO (21 December 2023), the issue was subscribed 51.85 times. While the number of shares offered was 13,744,472, the number of shares subscribed was 71,27,02,607.

The allotment of shares is expected to happen on 22 December 2023, and from 27th December 2023, Credo will be listed on both NSE and BSE.


The fashionable clothing industry is continuously on the rise with new designers and new trends coming in every day. Investing in this sector will definitely boost your portfolio’s value. However, it is important to consider the immensely competitive market and the constant exposure to public review.

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