TCNS Clothing IPO subscribed 5.2 times, sees strong demand from investors

Illustration: Ajay Mohanty
TCNS Clothing’s initial public offering (IPO) has garnered final subscription of 5.2 times thanks to strong demand from institutional investors. The institutional portion of the offering saw 13.5 times more demand than the shares on offer. Wealthy Investor portion was subscribed 5.1 times, but the retail category saw only 50 per cent subscription. 

TCNS’ is a company that owns popular women’s wear brand W. Through the IPO, promoters are diluted 25.6 per cent of their holdings. The IPO values the company at Rs 44 billion. 

 

"At the Rs 716 per share, the P/E multiple works out be 44 times FY2018 earnings (an exceptionally profitable year), which appears on the higher side when compared to large established listed retail players like Arvind (available at 34x FY2018 PE).

Hence, for its limited financial history, singular focus on ethnic woman apparel and demanding valuations, we recommend ‘Neutral’ on the issue," Angel Broking had said in a note.