Jacob Ballas-backed Crocodile brand to launch its IPO

SP Apparels has got clearance from capital market regulator Securities and Exchange Board of India (SEBI) for its proposed initial public offer (IPO). Once this happens, it will be the third firm of mid-market PE firm Jacob Ballas to go public in a little over a year. Last year it was theme park operator Adlabs Entertainment and PNC Infratech.

SP Apparels, which makes and retails menswear in India under the Crocodile brand, is looking to raise Rs 215 crores through a fresh issue of shares besides an offer for sale by Jacob Ballas that is looking to part exit.

In November 2006, Jacob Ballas through New York Life Investment Management India Fund II had picked up a 10.71 per cent stake in SP Apparels for Rs 36 crore. At present, it owns a 10.5 per cent stake in SP Apparels and will sell around half of it in the IPO. With this, SP Apparel will also test the primary market appetite for an apparel firm. Earlier, Monte Carlo Fashions had floated its IPO. However, it was not able to touch the IPO issue price after listing.

In 2014-15, SP Apparels’ revenue rose to Rs 479 crores from Rs 452 crores in the previous year. The net profit went up to Rs 10 crores from Rs 6.6 crore. The company has been stuck at single-digit sales growth trajectory for the past four years while its net profit had shrunk in previous years before managing to cross the Rs 9.7 crore mark touched in FY12.