Sleepwear focused company SD Retail Limited raise Rs. 18.50 crore from Anchor Investors ahead of its IPO

About the IPO

• Price Band of ₹124/ – ₹131/- per equity share bearing face value of ₹10/- each (“Equity Shares”).

• Issue size: ₹ 64.98 Cr (upper price band).

• Retail, HNI, QIB Bid/Offer Opening Date – Friday, September 20, 2024 and Bid/Offer Closing Date – Tuesday, September 24, 2024

• Lot Size: 1000 Equity Shares

• QIB Quota: 9,42,000 Equity Shares

• HNI Quota: 7,07,000 Equity Shares

• Retail Quota: 16,49,000 Equity Shares

• Market Maker Portion: 2,50,000 Equity Shares

The company aims to raise nearly Rs 65 crore (upper price band)through the SME IPO and list the shares on NSE Emerge platform. The proceeds from its fresh issuance worth Rs 16.48 crore will be utilized for Capital expenditure to be incurred by the Company for setting up new exclusive brand outlets (“EBOs”), Rs 35 crore for Funding Working Capital Requirements, and the rest for general corporate purposes.

The Company offers a diverse range of stylish and comfortable sleepwear for the entire family, celebrating the transition from work to home life and addressing every aspect of leisure time. By combining comfort, style, and functionality, SWEET DREAMS has carved out a unique position in a habitual apparel category, with customers wearing its clothes daily.

The brand primarily targets modern Indian women’s sleepwear needs, as this demographic is highly engaged with the category across various retail channels. Additionally, S D Retail Limited provides sleepwear for men and children, whose casual attire is often purchased by women in the household. The company boasts one of the broadest selections of sleepwear among Indian apparel retailers, offering a variety of fabrics, colours, and styles, including pyjamas, night sets, nighties, and T-shirts.

The company sells its products through distributors, exclusive brand outlets (EBOs), and multi-brand outlets (MBOs) across various states and union territories in India. Its products are also available on e-commerce platforms like Myntra, AJIO, Nykaa, Flipkart, Amazon, and the company’s own website, enabling sales both domestically and internationally. The company has an established track record of around 20 years, and the Promoter and Managing Director, supported by an experienced team, have been instrumental in their growth.

The company tends to strengthen its leadership position in the sleepwear market and focus on additional product launches, expand its retail network with a focus on EBOs, leverage technology to shift towards D2C sales and strengthen its online presence by capitalizing on the e-commerce trend.

SD Retail clocked a profit of Rs 7.59 crore in the financial year FY24 as compared to a net profit of Rs 4.3 crore in FY23. Revenue from operations had increased by 20.34% from Rs 135.08 crore in FY23 to Rs 162.55 crore in FY24, primarily due to an increase in sales of products & Export Incentive during the year, EBO’s business, LFS business, Online business, doing well as compared to FY23.

Beeline Capital Advisors Private Limited is the sole book running lead manager, and KFIN Technologies Limited is the registrar of the issue.

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