Mish Designs Ltd IPO

The brand "MISH" is a contemporary women's fashion label that specialises in offering affordable western and indo-western attire while maintaining a digital presence on a global scale. Since the 2017-18 fiscal year, MISH has sold more than 2,50,000 products through various e-commerce platforms. 

MISH has strategically forged partnerships with major e-commerce players, including Myntra, Nykaa Fashion, Ajio, Tata Cliq, and Namshi, by identifying unmet needs in the women's western wear category, focusing on growth opportunities.

MISH is actively involved in the fashion segment with the brand names "MISH" and "CURVES BY MISH." The company also exports their products to the UAE under the brand name "ZOEY." With a vast collection featuring over 1,000 trending designs, the company caters to a diverse range of customer preferences.

MISH maintains an in-house design team operating within their 10,000-square-foot manufacturing facility, staffed with over 54 dedicated employees. The product offerings encompass a wide array of women's wear, including dresses, gowns, tops, co-ords, t-shirts, trousers, and palazzos. 

In 2018, the global women's clothing market was worth around $1.4 trillion, and it's expected to grow at a rate of 4.7% from 2019 to 2025. This growth is driven by factors like an increasing female population, more working women, evolving fashion trends, and higher consumer spending. 

In India, the e-commerce industry is booming and is projected to become the world's second-largest by 2034, driven by technology innovations like digital payments and analytics. The Indian e-retail market is on a strong growth path, with expectations of 300-350 million online shoppers and a GMV (Gross Merchandise Value) of $100-120 billion by 2025.

To achieve a better market share, the company is expanding their women's western-wear offerings with jeans and accessories, going global in markets like Europe and the USA, and optimising inventory management with a "Never out of Stock" model.

Mish Designs Limited IPO Details

Mish Designs Limited IPO Date

The IPO of Mish Designs Limited is open for subscription from October 31, 2023, to November 2, 2023.

Mish Designs Limited IPO's Price Band

Mish Designs Limited’s IPO is a fresh issue IPO of up to ₹9.67 crore. It is a fresh price issue. The price range is set to ₹122 per share.

Mish Designs Limited IPO’s Lot Size

The lot size for Mish Designs Limited’s IPO is 1000 shares with a minimum investment of ₹1,22,000.

Mish Designs Limited IPO’s Objectives 

The company plans to allocate the net proceeds from the issuance to the following purposes:

1. Working Capital and Funding: The company intends to use ₹550.49 lakh of the net proceeds for its working capital needs. Additional working capital requirements will be met through bank loans and internal accruals. The board approved these requirements in a resolution dated August 30, 2023.

1. Branding and Marketing Initiatives: The company's brands "MISH," "Curves by MISH," and "ZOEY" are in their early stages and require nurturing. The company primarily focuses on effective communication with stakeholders. Over the last 3 years, marketing expenses and brand awareness expenditures amounted to ₹37.81 lakh, ₹9.47 lakh, and ₹9.67 lakh, respectively.

To establish a strong brand image, the company plans to employ targeted marketing initiatives, including digital marketing, email campaigns, social media advertising, and outdoor advertising. They also aim to engage an advertising agency to enhance brand awareness. ₹105.19 lakh from the issue proceeds will be allocated for branding and marketing activities based on a quotation from "ONLY ALL THAT" dated August 16, 2023.

General Corporate Purpose: The company's management will have the flexibility to use the rest of the gross proceeds for various general corporate purposes. This includes strategic initiatives, partnerships, joint ventures, acquisitions, debt reduction, facility renovations, brand promotion, and other business exigencies.

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Contact Details of Mish Designs Limited

Registered office: Gala No. 4, Gulati Industries, Hattibaug Love Lane, Mazgaon, Mumbai City, Mumbai, Maharashtra, India - 400010

Contact Person: Kruti Parekh (Company Secretary and Compliance Officer)

Phone: +91 22- 23719478

E-mail: info@mishindia.com

Mish Designs Ltd Company Financials

Know before investing

Strengths

5

1. MISH Designs Limited excels in online business through popular platforms like Myntra, Nykaa Fashion, and more.

2. With a scalable business model, cost-effective production, timely order fulfilment, and experienced leadership from co-founders Mr Kaushal Goenka and Mr Sajan Bhartia, MISH Designs is positioning itself for growth in the competitive fashion market.

3. MISH Designs Limited is set to expand its product portfolio, targeting greater brand loyalty by introducing new items such as jeans and accessories to complement the existing range of women's western wear.

4. With a focus on overseas markets, MISH Designs Limited is currently exporting its products in Europe and the USA under the brand names "MISH," "Curves by Mish," and "ZOEY." MISH is also looking to expand its export portfolio to other countries.

Risks

5

1. MISH Designs Limited faces risks related to regulatory approvals, licenses, and compliance, which, if not obtained or maintained, could impact its operations.

2. The company's revenue heavily relies on prominent e-commerce partners, and any deterioration in these relationships may harm its business.

3. MISH Designs has not yet engaged marketing agents as outlined in its objectives and has allocated funds for brand awareness and website upgrades based on vendor quotes.

4. The company's concentration on women's western wear sales leaves it susceptible to market demand fluctuations and changing consumer preferences.

5. MISH Designs' success is closely tied to its key personnel, and attracting, hiring, training, and retaining them is vital to its operations. Failure to do so may negatively affect the company's performance.