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10 January 2024

Mish Designs IPO: Unveiling Fashion, Empowering Growth

Introduction:

Mish Designs IPO, a fixed-price issue amounting to Rs 9.76 crores, marks a significant stride in the world of garment processing and fashion. The IPO, entirely a fresh issue, comprised 8 lakh shares. The bidding window opened on October 31, 2023, and concluded on November 2, 2023. Post allotment finalization on November 6, 2023, the shares made their debut on BSE SME on November 7, 2023.

Financial Landscape:

The IPO was priced at ₹122 per share, with a minimum lot size of 1000 shares. Retail investors were required to commit a minimum investment of ₹122,000, while HNIs had to invest in 2 lots (2,000 shares), amounting to ₹244,000.
As of January 12, 2024, the stock closed at ₹161.50, witnessing a 9.16% surge. The opening and closing values stood at ₹143.15 and ₹165.00, respectively. The 52-week range showcased a high of ₹165.00 and a low of ₹117.70.

Key IPO Statistics:

- IPO Duration: October 31, 2023, to November 2, 2023
- Listing Date: November 7, 2023
- Face Value: ₹10 per share
- Price: ₹122 per share
- Lot Size: 1000 Shares
- Total Issue Size: 800,000 shares, aggregating up to ₹9.76 Cr
- Offer for Sale: 800,000 shares, aggregating up to ₹9.76 Cr
- Issue Type: Fixed Price Issue IPO
- Listing At: BSE, SME

Equity Dynamics:

Before the issue, Mish Designs held 2,000,000 shares, a figure that increased to 2,800,000 post the IPO. The market maker portion was set at 78,000 shares, managed by Nikunj Stock Brokers.

IPO Reservation Strategy:

The IPO reserved 45.13% of shares for both NII and RII categories. Market makers were offered 9.75% of shares, and retail investors had the lion's share at 45.13%.

IPO Timeline Highlights:

- IPO Open Date: Tuesday, October 31, 2023
- IPO Close Date: Thursday, November 2, 2023
- Basis of Allotment: Monday, November 6, 2023
- Initiation of Refunds: Monday, November 6, 2023
- Credit of Shares to Demat: Monday, November 6, 2023
- Listing Date: Tuesday, November 7, 2023
- Cut-off time for UPI mandate confirmation: 5 PM on November 2, 2023

Lot Size Landscape:

Investors had the flexibility to bid for a minimum of 1000 shares and in multiples thereof. The table below illustrates the investment parameters for retail investors and HNIs:

Application	Lots	Shares	Amount
Retail (Min)	1	1000	₹122,000
Retail (Max)	1	1000	₹122,000
HNI (Min)	2	2000	₹244,000

Promoter Holding Perspective:

The promoters of Mish Designs Limited, namely Kaushal Goenka and Sajan Bhartia, held 95.75% of shares pre-issue, which decreased to 68.35% post the IPO.

The company's competitive strengths lie in its:

- Online presence on platforms like Nykaa, Myntra, Ajio, etc.
- Cost-effective production and timely order fulfillment.
- Experienced management team and promoters.

Financial Performance Snapshot:

As of June 30, 2023:

- Assets: ₹697.71 Lakhs
- Revenue: ₹227.17 Lakhs
- Profit After Tax: ₹11.33 Lakhs
- Net Worth: ₹229.40 Lakhs
- Reserves and Surplus: ₹29.40 Lakhs
- Total Borrowing: ₹264.37 Lakhs

Key Financial Indicators:

- ROE: 44%
- ROCE: 22.20%
- Debt/Equity: 1.38
- RoNW: 27.86%
- EPS (Rs): 5.61
- P/E (x): 75.31

Objects of the Issue:

The Net Proceeds from the issue are intended for:
1. Funding Working Capital Requirements. 2. Funding Branding and Marketing Initiatives. 3. General Corporate Purposes.

Expert Analysis:

The IPO is perceived as greedily priced, and investors are advised to exercise caution.

IPO Subscription Status:

As of November 2, 2023, the Mish Designs IPO garnered a robust subscription of 135.43 times. Retail and Other categories witnessed overwhelming responses, with subscriptions of 166.74 times and 98.44 times, respectively. The total number of applications reached 67,996, reflecting a subscription of 188.35 times.

Note: All financial figures are in INR (Indian Rupees), and market-related data is as of January 12, 2024.

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