Mufti brand owner Credo and RBZ Jewellers get Sebi's approval for IPOs

Credo Brands Marketing Ltd, which owns denim brand Mufti, and B2B and retail jewellery firm RBZ Jewellers Ltd have received approval from capital markets regulator Sebi to mobilise funds through initial public offerings (IPOs).

RBZ Jewellers and Credo Brands, which filed draft papers with Sebi during June and July, obtained observations on September 28 and October 6, respectively, data with the Securities and Exchange Board of India (Sebi) showed on Tuesday.

In Sebi's parlance, its observation means its go-ahead to float the public issue.

Going by the draft papers, Credo Brands' maiden public issue is entirely an offer for sale (OFS) of up to 1.96 crore shares by promoters and other existing shareholders.

At present, promoters and promoter group members together hold over 67 per cent stake in Credo Brands Marketing. Bennett Coleman & Co, which made an investment of over Rs 9 crore for 9.72 per cent ownership, holds a 12.36 per cent stake in the company.

Credo Brands Marketing is among the leading home-grown brands in the mid-premium and premium casual men's wear market in the country.

The IPO of Ahmedabad-based RBZ Jewellers is completely a fresh issue of 1 crore equity shares, according to the draft papers.

Proceeds from the issue will be utilised to the extent of Rs 80.75 crore for funding working capital requirements of the company and general corporate purposes.

The equity shares of both the companies are proposed to be listed on BSE and NSE.