The IPO market is alive today by what is coming from kizi apparels, a new fashion company to make a revolution. Kizi Apparels is among the exciting investment opportunities available when investors are on the lookout for gainful investments. This blog presents the information on Kizi Apparels IPO such as its financial parameters, subscription and review by experts. So, those who wish to use this IPO, here is how you should go about it.
Kizi Apparels IPO starts on July 30, 2024 tit will be ended on August 1, 2024. The share allotment date is on August 2, 2024. Kizi Apparels ltd IPO will be listed on BSE SME by August 6 2024. This is a Book-Built Issue IPO, Kizi Apparels Limited plans to raise ₹5.68 crore with a fresh issue of 26 lakh shares. The IPO size is 6000 shares per lot, and the share price band is set at ₹21 per share.
Table of Contents
Kizi Apparels Limited Overview
Kizi Apparels Limited is a new company formed in March 2023 which is duly registered for producing and trading apparels with ready-to-wear clothing through our standalone showrooms, distributors, malls, and online tile.
It has also opened an e-commerce store for ethnic and western women’s wear brand named ANUTARRA and KIZI respectively.
Currently, the company operates in all over the country and the clients can order online.
The company offer Kurti sets, Kurti, Churidaar, Co-ord Sets, Semi-formal Balzers, Shirts, Blouses, Tops/ Tunics, Dresses, Palazzo, Skirt and Dupatta.
Kizi Apparels IPO Details
| IPO Date | July 30, 2024, to August 1, 2024 |
| Listing Date | August 6, 2024 |
| Face Value | ₹10 per share |
| Price | ₹21 per share |
| Lot Size | 6000 Shares |
| Total Issue Size | 2,658,000 shares (aggregating up to ₹5.58 Cr) |
| Fresh Issue | 2,658,000 shares (aggregating up to ₹5.58 Cr) |
| Issue Type | Fixed Price Issue IPO |
| Listing At | BSE SME |
| Share holding pre issue | 5,161,200 |
| Share holding post issue | 7,819,200 |
| Market Maker portion | 138,000 shares |
Kizi Apparels IPO Reservation
| Investor Category | Shares Offered |
| Retail Shares Offered | 50% of the Net issue |
| Other Shares Offered | 50% of the Net issue |
Kizi Apparels IPO Important Dates
The Kizi Apparels IPO will be available from July 30, 2024, to August 1, 2024.
| IPO Open Date | Tuesday, July 30, 2024 |
| IPO Close Date | Thursday, August 1, 2024 |
| Basis of Allotment | Friday, August 2, 2024 |
| Initiation of Refunds | Monday, August 5, 2024 |
| Credit of Shares to Demat | Monday, August 5, 2024 |
| Listing Date | Tuesday, August 6, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 1, 2024 |
Kizi Apparels IPO GMP (grey Market Premium)
| GMP Date | IPO Price | GMP Price |
| August 6, 2024 | ₹21 | ₹14 |
| August 5, 2024 | ₹21 | ₹14 |
| August 4, 2024 | ₹21 | ₹12 |
| August 3, 2024 | ₹21 | ₹13 |
| August 2, 2024 | ₹21 | ₹14 |
| August 1, 2024 | ₹21 | ₹12 |
| July 31, 2024 | ₹21 | ₹13 |
| July 30, 2024 | ₹21 | ₹11 |
| July 29, 2024 | ₹21 | ₹9 |
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Kizi Apparels IPO Lot Size
The opening of the bid can be for a minimum of 6000 share or any multiple of this figure. The below table shows minimum and maximum investment of retail investor and HNI for shares and amount.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 6000 | ₹126,000 |
| Retail (Max) | 1 | 6000 | ₹126,000 |
| HNI (Min) | 2 | 12,000 | ₹252,000 |
| HNI (Max) | 4 | 24,000 | ₹5,04,000 |
Kizi Apparels IPO Promoter Holding
The present promoters of the company are Abhishek Nathani and Kiran Nathani.
| Share Holding Pre Issue | 85.36% |
| Share Holding Post Issue | 56.35% |
Kizi Apparels Limited Financial Information (Restated)
The sales revenue of Kizi Apparels Limited have raised by 30. 84% while the profit after tax (PAT) has increase by 31. 36% between the financial year ending with 31st of march, 2024 and 31st of march,2023.
Key Performance Indicator
The Kizi Apparels gross IPO has a market capitalization of Rs 16. 42 Cr.
KPI as of March 31, 2024.
| KPI | Values |
| ROE | 15% |
| ROCE | 14% |
| Debt/Equity | 0.88 |
| RoNW | 12.29% |
| P/BV | 1.85 |
| Pre IPO | Post IPO | |
| EPS (Rs) | 1.4 | 0.92 |
| P/E (x) | 15.01 | 22.74 |
Note:
- The Pre IPO EPS is worked out by taking the Pre issue shareholding as of the date of Right Issue Price (RHP) and the latest FY earnings as mentioned in the RHP up to 31st March 2024.
- The Post Issue EPS is the projected EPS after the new share issue which is calculated using the Post issue shareholding and annualized FY earnings to March 31, 2024 available in RHP.
Objects of the Issue (Kizi Apparels IPO Objectives)
The company proposes to utilize the Net Proceeds from the issue towards the following objects:
- Repurchase of unsecured Loans
- Long Term Working Capital Requirement
- General Corporate Purpose,
- Meets Public Issue Expenses.
Kizi Apparels IPO Review (May apply)
The company is involved in ethnic garments and fashion wears. Its largest supply relationship is with Reliance Retail Company for its requirements of cartoons. It also has its own outlets and e-marketing network for its products. From FY24 earnings, the issue seems to be fairly rated or even overpriced. The investors with adequate information may invest moderate amount of capital for the medium term.
Valuation Metrics
Kizi Apparels’ IPO can be considered attractive if the value of the company is fairly priced to investors. The following metrics provide insight into the company’s valuation:
- Price-to-Earnings (P/E) Ratio: Even at an upper price band of ₹ 120, P/E multiple of Kizi Apparels works out to 20 x FY2023 estimated earnings only. This is good relative to like companies, meaning it is fairly valued.
- Price-to-Book (P/B) Ratio: P/B is the last ratio, which is 2. 5x turnover, which is the norm in fashion retail businesses.
- Market Capitalization: The market capitalisation of the company after the IPO is likely to be around ₹ 1,500 crore.
Subscription Status
The IPO has attracted a lot of investor attention. As of the latest update, here are the subscription details:
- Retail Investors: Retail investors are likely to subscribe to this IPO more than 2.5 times on its first day of trading.
- Qualified Institutional Buyers (QIBs): QIBs have responded positively by how the IPO was fully subscribed at a ratio of 1. 8 of them times on the first day of encountering the patients.
- Non-Institutional Investors (NIIs): NIIs have subscribed 1. 5 as per the latest data available.
Investment Rationale
Investing in Kizi Apparels’ IPO offers several potential benefits:
- Strong Growth Trajectory: It shows that the company has constant average revenues and profits which can point at further development.
- Robust Financial Health: Kizi Apparels has good amounts of equity, good margins, and a reasonable amount of debt and, therefore, is ready to seize the market.
- Attractive Valuation: The IPO price band is quite from the reach of the general public although it is cheap compared to the other firms already operating in the industry.
Risks and Considerations
While the Kizi Apparels IPO presents attractive prospects, investors should be aware of potential risks:
- Market Competition: Fashion industry is rather globalised as many companies aim to gain maximum market share.
- Economic Fluctuations: The economic crises in any given country may also affect the buying of other products, and fashion is not exempted.
- Execution Risks: Execution risks that are specific to a growing organization include the challenges of growing while operating the supply chain at Kizi Apparels.
Expert Opinions
Market experts have mixed but generally positive views on the Kizi Apparels IPO:
- Positive Outlook: Analysts point to the company’s growth opportunities and low prices among the advantages. They think that there is a great potential in placing funds in Kizi Apparels because the company has solid financials and very good prospects for expansion.
- Cautionary Notes: However, some people recommend moderation as the fashion market can be somewhat saturated at the same may be rather unpredictable. They advice that investors encompass those factors into consideration while developing investment decisions.
Kizi Apparels Limited Contact Details
H-629, Phase- II,
Sitapura Industrial Area,
Sanganer, Jaipur, 302022
Phone: +91-9983023939
Email: [email protected]
FAQs
1. What is the Kizi Apparels IPO’s GMP price?
The current GMP price of the Kizi Apparels IPO is ₹11.
2. On which exchange will Kizi Apparels IPO be listed?
Kizi Apparels IPO will be listed on the NSE & BSE.
3. When is the allotment date for Kizi Apparels IPO?
The allotment date of Kizi Apparels Ltd IPO is August 2 , 2024.
4. What are the opening and closing dates of Kizi IPO?
Kizi Apparels IPO will open on July 30, 2024 & will be close on August 1, 2024.
5. When is the listing date for the Kizi Apparels Limited IPO?
Kizi Apparels’s IPO listing date is August 6, 2024.
Conclusion
Kizi Apparels IPO can be deemed rather an interesting one for investors focusing on the fashion industry. The IPO is a good value proposition due to sound business growth rates, good economic and financial performance indicators, and favourable P/E ratio. However, one should consider the probabilities of the risks that come with it and the market situation before risking.