CPS Shapers IPO Today: GMP check & key price dates

Vaibhav Jewellers sets IPO price at Rs 204-215 per share, raising Rs 270 Cr

In an exciting development, CPS Shapers has kicked off its IPO subscription today, marking a significant milestone for investors. The subscription window is open from August 29 to August 31, offering a limited opportunity to secure a stake in this emerging player. The CPS Shapers SME IPO has set a price band of ₹185 per equity share, each having a nominal value of ₹10. As per the guidelines, bids can be submitted for a minimum of 600 equity shares, with increments in multiples of 600 shares. Notably, the issue price for the CPS Shapers SME IPO stands at 18.5 times the face value of the equity shares, as confirmed by the Red Herring Prospectus (RHP).

Diving into the specifics, the CPS Shapers IPO primarily involves a fresh issue of 6,00,000 equity shares, aggregating to a total value of ₹11.10 crore. It’s worth noting that this offering exclusively comprises the fresh issue component, with no part dedicated to an offer for sale (OFS). The company’s RHP outlines a clear utilization plan for the gross proceeds garnered through the IPO. The key areas of focus include enhancing the existing IT software infrastructure at the manufacturing facility and registered office, procuring essential plant and machinery, acquiring a commercial vehicle, funding capital expenditures for a solar power system, and repaying or prepaying borrowings.

The allotment process for CPS Shapers IPO shares will conclude on September 5, following which refunds will be initiated on September 6. Share allottees can expect their shares to be credited to their demat accounts by September 7. The exciting aspect for investors is that CPS Shapers’ listing on the NSE SME platform is anticipated to take place on September 8, marking a new chapter in the company’s journey.

Behind the scenes, Abhishek Kamal Kumar and Rajendra Kumar stand as the driving forces and promoters of CPS Shapers. Steering the IPO process, Shreni Shares Ltd takes on the role of the lead manager, while Bigshare Services Private Ltd is entrusted with the task of registrar.

Taking a broader view of the industry landscape, CPS Shapers’ RHP positions it among industry peers like Page Industries Ltd, Lux Industries Ltd, Dollar Industries Ltd, K.P.R Mill Ltd, and Arvind Ltd. This context provides valuable insights into the company’s competitive positioning.

Diving into the financial outlook, CPS Shapers Ltd’s FY23 performance is noteworthy, boasting a price-to-earnings (PE) ratio of 11.28x. To put this in perspective, other notable players like Page Industries Ltd., Lux Industries Ltd., Dollar Industries Ltd., K.P.R Mill Ltd., and Arvind Ltd. showcase PE ratios of 78.85, 30.29, 41.65, 39.38, and 12.58, respectively.

As for CPS Shapers’ core operations, the company specializes in crafting shapewear for both men and women. Their diverse product range includes V-Shapers, Saree Shapewear, Active Pants, and ShapeX Denim, catering to a wide audience. Under the brand name “Dermawear,” the company has etched its presence in the apparel industry, embodying the ethos of “Your Dress Is Shapewear” and the tagline “Shape up with Confidence.” With a dual approach of online and offline distribution, CPS Shapers has formulated a robust business model.

On the financial front, CPS Shapers has demonstrated consistent growth, as evidenced by a remarkable 56.7 percent year-on-year increase in profit, amounting to ₹2.46 crore. Simultaneously, the company’s revenue has surged by an impressive 38 percent, reaching ₹36.8 crore for the fiscal year ending in March 2023.

Investor enthusiasm is palpable, with the CPS Shapers IPO GMP (grey market premium) scaling new heights. Recent trends indicate a substantial increase of +90, reflecting a robust demand for CPS Shapers shares in the grey market. This points to a premium of ₹90 in the grey market, underscoring heightened investor interest.

Taking all factors into consideration, and factoring in the upper end of the IPO price band alongside the prevailing grey market premium, market experts project a potential listing price of ₹275 for CPS Shapers shares. This projection represents a remarkable surge of 48.65% from the IPO price of ₹185.

About CPS Shapers:

CPS Shapers Ltd was founded in 2012 with the primary objective of being involved in the manufacturing of Shapewear designed for both Men and Women. The company operates under the brand name “Dermawear” and currently distributes its Shapewear products through both offline and online retail channels. The company’s diverse product portfolio encompasses a wide range of items, such as saree shapewear, mini shapers, sports bras, mini corsets, tummy reducers, active pants, denim wear, masks, and various other shapewear products.

With an extensive presence across India, CPS Shapers Ltd has established a robust network of distributors covering all 28 states and 8 Union territories within the country. Additionally, the company has effectively penetrated international markets and serves customers in five different countries: Canada, Germany, Australia, the UK, and the US.

While the company’s manufacturing unit is situated in Meerut, Uttar Pradesh, its warehousing facilities are strategically located in Palghar, Maharashtra, and Tirupur, Tamil Nadu, catering to different regions efficiently.

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