Table of Contents
![Mufti Menswear IPO Mufti Menswear IPO opens: Bennett Coleman sells over 4% stake in Credo Brands](https://cdn.shortpixel.ai/stsp/to_webp,q_lossy,ret_img/https://images.moneycontrol.com/static-mcnews/2019/11/mufti-770x433.jpg?impolicy=website&width=770&height=431)
Negen Capital, ACM Global Fund pick over 4% stake in Mufti Menswear
Bennett Coleman and Co (BCCL) offloaded more than a 4 percent equity stake in Credo Brands Marketing, the owner of Mufti Menswear, for more than Rs 81 crore a few days before the company opened its IPO.
The Rs 550 crore public issue opened for subscription today with a price band of Rs 266-280 per share. The IPO comprises only an offer-for-sale (OFS) by the selling shareholders, including promoters Kamal Khushlani and his wife Poonam Khushlani.
The offer will be closing on December 21.
Bennett Coleman sold 25.36 lakh equity shares to ACM Global Fund VCC and 3.6 lakh equity shares to Negen Capital Services at the upper price band.
“Pursuant to the share purchase agreement, dated December 15, 2023, entered among BCCL, ACM Global Fund VCC and Credo Brands, ACM purchased 25,36,279 equity shares from BCCL for Rs 71,01,58,120,” the Kamal Khushlani and Poonam Khushlani-promoted company said in its addendum to the RHP, i.e notice to investors.
Click Here To Read Moneycontrol’s Exclusive Note on Credo Brands IPO
Further, the company said under a share purchase agreement, dated December 16, entered among BCCL, Negen Capital Services acting as the investment manager of Negen Undiscovered Value Fund (NUVF) and Credo, NUVF has purchased 3,60,000 equity shares of the company from BCCL for Rs 10,08,00,000.
The company and shareholder Dharmayug Investments also entered into a share purchase agreement (SPA) with ACM Global Fund VCC on December 15. According to the said agreement, “ACM has purchased 1,42,292 equity shares from Dharmayug for Rs 3,98,41,760. There are no special rights available to ACM under the ACM Dharmayug SPA,” Credo said.
Story continues below Advertisement
Also read: Doms Industries IPO: Basis of allotment fixed. Here’s how to check your status online
With the above transaction, Bennett Coleman’s shareholding in Mufti Menswear dropped to 7.88 percent from 12.64 percent held at the time of filing RHP (red herring prospectus) with the ROC.
Further, ACM Global Fund VCC’s stake stood at 4.04 percent, while Negen Capital-owned fund holds 0.54 percent shares and Dharmayug’s shareholding declined to 0.47 percent from 0.71 percent.
After these transactions, ACM Global Fund and Negen Capital are the new shareholders in the company.
Click Here To Read Moneycontrol’s Exclusive Note on RBZ Jewellers IPO
Promoter and promoter group led by Kamal Khushlani and his wife Poonam Khushlani hold 68.82 percent shares in the company, while the remaining 31.18 percent shares are held by public shareholders including Bennett Coleman, Bela Properties, Jay Milan Mehta, and Sagar Milan Mehta.
Meanwhile, on December 18, a day before the issue opening for subscription, Credo Brands Marketing which offers casual clothing for men with its flagship brand Mufti has raised Rs 164.93 crore from several anchor investors at the upper price band.
Morgan Stanley, HSBC Mutual Fund, Integrated Core Strategies, Aditya Birla Sun Life Insurance, SBI General Insurance Company, Kotak Mahindra Life Insurance, and JM Financial Mutual Fund are some of the anchor investors who participated in the anchor book.
Also read: Moneycontrol Pro Panorama | Year-end rush of IPOs
The Mufti Menswear IPO received a good response from investors on the first day of bidding, subscribing 1.16 times at 14:21 hours IST. Retail investors and high networth individuals (HNIs) were at the forefront of supporting the issue, buying 1.94 times the allotted quota and 87 percent shares of the reserved portion.
Qualified institutional buyers (QIBs) also participated in the offer on day 1, bidding 7,314 equity shares against their reserved portion of 39.26 lakh shares.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.