Sleepwear-focused company S D Retail Limited files DRHP for SME IPO

Ahmedabad-based sleepwear-focused company S D Retail Limited is in the business of designing, manufacturing, outsourcing, marketing, and retailing sleepwear under the brand name “SWEET DREAMS”, has filed its draft red herring prospectus (DRHP) for its initial public offering (IPO) in NSE Emerge.

The IPO, with a face value of Rs 10 per equity share, is entirely a fresh issue of up to 49.60 lakh shares with no offer of sale component. 

The proceeds from its fresh issuance will be utilized to Capital expenditure to be incurred by the Company for setting up new exclusive brand outlets (“EBOs”), Funding Working Capital Requirement and General Corporate Purpose.

S D Retail Limited offers a diverse range of stylish and comfortable sleepwear for the entire family, celebrating the transition from work to home life and addressing every aspect of leisure time. By combining comfort, style, and functionality. SWEET DREAMS has carved out a unique position in a habitual apparel category, with customers wearing its clothes daily.

The brand primarily targets the modern Indian woman's sleepwear needs, as this demographic is highly engaged with the category across various retail channels. Additionally, S D Retail Limited provides sleepwear for men and children, whose casual attire is often purchased by women in the household. The company boasts one of the broadest selections of sleepwear among Indian apparel retailers, offering a variety of fabrics, colors, and styles, including pyjamas, night sets, nighties, and T-shirts.

S D Retail Limited designs its products to cater to men and women of all age groups, including children aged 2 to 16 years, and ensures fits suitable for various body types and physiques. The company also extends its offerings to adjacent categories such as loungewear, workout wear, athleisure, and work leisure pants.

As of February 29, 2024, the company sells its products through distributors, exclusive brand outlets (EBOs), and multi-brand outlets (MBOs) across various states and union territories in India. Its products are also available on e-commerce platforms like Myntra, AJIO, Nykaa, Flipkart, Amazon, and the company's own website, enabling sales both domestically and internationally.

By establishing a pan-India presence through various touchpoints, including EBOs, large format stores (LFS), and MBOs, S D Retail Limited has effectively reached a broad customer base. The company's asset-light model, which involves no ownership of the properties where its stores are located, allows for scalability and efficient opening of new EBOs.

S D Retail clocked a profit of Rs 4.30 crore in the financial year FY23 on revenue from operations of Rs 135.09 crore.

For the eleven months ended February 29, 2024, revenue from operations stood at Rs 144.14 crore, and profit after tax stood at Rs 6.15 crore.

Beeline Capital Advisors Private Limited is the Book Running Lead Manager, and KFin Technologies Limited is the registrar of the issue.