An IPO is being launched by Marc Loire Fashions Ltd on the BSE SME platform, aiming to raise funds through a fixed-price issue. The offering includes up to ₹21.00 crore, comprising a fresh issue of 21,00,000 equity shares. There is no offer for sale (OFS) included in the issue.
Company Overview
Marc Loire Fashions Ltd, incorporated on March 11, 2014, is engaged in the design, branding, and trading of fashion footwear and accessories. The company offers a range of products including casual shoes, sandals, boots, slippers, and other lifestyle items for both men and women. Operating primarily through an asset-light model, the company outsources manufacturing while focusing in-house on design, branding, and distribution.
It has established its presence across multiple online marketplaces and also sells through distributors and direct-to-consumer channels. With an aim to strengthen its retail footprint, the company plans to open 15 exclusive brand outlets (EBOs) across India, funded through proceeds from the IPO.
Positioned as a youth-focused, affordable fashion brand, the company targets both tier-1 and tier-2 cities. Marc Loire Fashions Ltd was converted from a private to a public limited company on July 18, 2024, and is promoted by a team experienced in fashion retail and brand development.
Lot Size & Investment Details
| Investor Type | Lots | Shares | Investment |
|---|---|---|---|
| Retail (Minimum) | 1 | 1,200 | ₹1,20,000 |
| Retail (Maximum) | 1 | 1,200 | ₹1,20,000 (capped by retail limit) |
| HNI (S-HNI) | 2 | 2,400 | ₹2,40,000 at upper band |
📊 Financial Highlights
| Year Ending March | Revenue (₹ Cr) | PAT (₹ Cr) |
|---|
| FY22 (03/2022) | 26.02 | 0.19 |
| FY23 | 37.44 | 0.65 |
| FY24 | 40.40 | 4.08 |
📦 Issue Structure
- The IPO is a fixed-price issue on the BSE SME platform.
- Total issue size is ₹21.00 crore, comprising 21,00,000 equity shares.
- Issue price is fixed at ₹100 per share (face value ₹10).
- This is a 100% fresh issue; there is no offer for sale (OFS).
- 1,06,000 shares are reserved for the market maker.
- 19,94,000 shares are available for public subscription.
- The lot size is 1,200 shares.
- The minimum investment required is ₹1,20,000.
- Shares will be listed on the BSE SME platform post allotment.
⚠️ Risks
Limited Operating History as a Public Entity
The company was only recently converted to a public limited structure. Its ability to comply with listed entity regulations and governance standards remains untested.
Highly Competitive Industry
The footwear and fashion industry is highly competitive with low entry barriers, making it difficult to maintain pricing power and consistent market share.
Retail Expansion Risk
A significant portion of IPO proceeds will be used to open 15 new brand outlets. Delays in store openings, location underperformance, or operational inefficiencies could impact the company’s growth expectations.
Inventory and Fashion Risk
The business involves stocking seasonal merchandise. Unsold or outdated stock can lead to markdowns and losses, especially in a trend-sensitive sector like footwear and fashion.
Working Capital Requirements
The business is working capital intensive. Any delay in receivables or rise in input costs could stress liquidity.
Geographic Concentration
If a majority of the company’s sales are concentrated in a few regions, any regional slowdown or disruption could materially affect revenue.
SME Listing Volatility
Being listed on the BSE SME platform, the stock may face limited liquidity, higher volatility, and lower analyst coverage compared to mainboard IPOs.
Dependence on Key Personnel
The company’s operations are led by a few key individuals. Loss or unavailability of senior leadership could impact strategic direction and continuity.
📝 Summary
Marc Loire Fashions Ltd is launching a fixed-price SME IPO of 21 lakh shares at ₹100 each, aiming to raise ₹21 crore. The issue is primarily fresh capital, with a small market-maker set-aside. Funds will fuel growth via new retail outlets, inventory enhancement, and general needs. With public status effective July 2024 and FY24 PAT rising sharply, the company positions itself for expansion.
