BIBA IPO constitutes fresh issue of equity shares amounting to Rs.90 Crores and about an offer for sale of 2.7 Cr equity shares. The company was established in 1986 as a home-grown label and today it is a market leader in women's ethnic wear.
BIBA is a leading brand in women ethnic wear. The brand offers high-quality products across segments like salwar kameez dupattas, mix-n-match wear, ready-to-stitch wear, kidswear, bottom-wear and accessories. BIBA’s product mix has evolved over 154 SKUs.
Their products are available through a pan-India multichannel distribution network that BIBA has built over the years comprising exclusive brand outlets (“EBOs”), large format stores (“LFSs”) and multi-brand outlets (“MBOs”), as well as online channels comprising of own websites and other online marketplaces like NYKAA, Flipkart, Lifestyle, etc.,
BIBA IPO Objectives:
Here are few quick reasons on why BIBA is going public
- The proceeds from the sale of shares through BIBA IPO will be used in clearing the debts
- The funds will be utilised for brand building and other strategic growth initiatives
Why should you invest in the BIBA IPO?
Below are your top 2 reasons:
- As per the technopark Feb 2022 report, BIBA has the highest online brand recall
- The gross profit margin has been consistently higher than 58% for last 3 years
IPO Financials
| Particulars | FY21 | FY20 |
|---|---|---|
| Revenue From Operation | 4,498.16 | 3,018.06 |
| EBITDA | 1,161.32 | 737.31 |
| EBITDA Margin (%) | 25.59% | 24.27% |
| Profit After Tax | 711.19 | 399.56 |
| EPS | 7.36 | 4.24 |
| ROE | 40.79% | 51.04% |
Know before investing
Strengths
3A strong offline and digital presence across multi brand store outlets, large format stores and online marketplaces
A robust screening and selection process for all new design samples which involves data analytics
International presence in countries like Nepal, Canada and UAE
Risks
3BIBAs business is heavily concentrated in women’s apparels - the brand is always subjected to a risk of shift in customer preferences
A pandemic like COVID can disrupt the revenue and eventually cash flows
If BIBA is unable to identify customer demand accurately, the cash flows and operations will be adversely impacted
Peer Comparison
| Name of the company | Face value (₹ per share) | Total Income (in ₹ million) | NAV (₹ per share) | RoNW (%) |
|---|---|---|---|---|
| TCNS Clothing Company Limited | 2.00 | 6,845.25 | 99.47 | 9.21% |
| Trent Limited | 1.00 | 27,945.60 | 65.07 | 6.32% |
| Go Fashion (India) Limited | 10.00 | 2,822.53 | 94.31 | 1.25% |
| Vedant Fashions Limited | 1.00 | 1,010.00 | 44.03 | 12.18% |
| Aditya Birla Fashion and Retail Ltd | 10.00 | 53,223.20 | 28.20 | 25.44% |
