Mufti Menswear IPO Basis of Allotment

This is a public announcement for information purposes only and is not a prospectus announcement and does not constitute an invitation or offer to acquire, purchase or subscribe to securities. Not for release, publication or distribution directly or indirectly, outside India. Initial public offer of equity shares on the main board of BSE Limited ("BSE") and National Stock Exchange of India Limited ("NSE" and together with BSE, the Stock Exchanges") in compliance with Chapter II of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended ("SEBIICDR Regulations").

Our Company was incorporated as a private limited company in the name of Credo Brands Marketing Private United' in Mumbai, Maharashtra .India under the Companies Act. 1956 pursuant to a certificate of incorporation dated April 29, 1999 issued by the Registrar of Companies. Maharashtra at Mumbai (the 'RoC') Subsequently, our Company was converted from a private limited company to a public limited company and the name of our Company was changed to Credo Brands Marketing Limited', pursuant to a board resolution dated April 7.2023, and a special resolution passed by our shareholders on April 18,2023, consequent to which a fresh certificate of incorporation dated May 11.2023. was issued by the RoC to our Company. For further details on changes to the address of the Registered and Corporate Office, see "History and Corporate Structure''on page 186 of the Prospectus dated December 21.2023 filed with the RoC {'Prospectus' ).

Our Company has filed the Prospectus dated December 21,2023 with the RoC, and the Equity Shares are proposed to be listed on the National Stock Exchange of India Limited ("NSE") and BSE Limited ("BSE") and trading is expected to commence on December 27,2023.

INITIAL PUBLIC OFFER OF 19.S34.960 EQUITY SHARES OF FACE VALUE OF Rs. 2EACH ("EQUITY SHARES ') OF CREOO BRANDS MARKETING LIMITED (THE ' COMPANY" OR "ISSUER") FOR CASH AT A PRICE OF Rs. 280 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs. 278 PER EQUITY SHARE) (THE "OFFER PRICE") AGGREGATING TO Rs. 5.497.79 MILLION (-OFFER") COMPRISING AN OFFER FOR SALE OF 4,140,000 EQUITY SHARES AGGREGATING TO Rs. 1.159.20 MILLION BY KAMAL KHUSHLANI AND 4.275,000 EQUITY SHARES AGGREGATING TO Rs. 1,197.00 MILLION BY POONAM KHUSHLANI (TOGETHER THE "PROMOTER SELLING SHAREHOLDERS"). 108,000 EQUITY SHARES AGGREGATING TO Rs. 30.24 MILLION BY SONAKSHI KHUSHLANI AND 108,000 EQUITY SHARES AGGREGATING TO Rs. 30.24 MILLION BY ANDREW KHUSHLANI (TOGETHER THE PROMOTER GROUP SELLING SHAREHOLDERS"), 2,032,260 EQUITY SHARES AGGREGATING TO Rs. 569.03 MILLION BY CONCEPT COMMUNICATION LIMITED. 5,031,260 EQUITY SHARES AGGREGATING TO Rs. 1,408.75 MILUON BY BELA PROPERTIES PRIVATE LIMITED, 1,970.220 EQUITY SHARES AGGREGATING TO Rs. 551.66 MILLION BY JAY MILAN MEHTA AND 1,970.220 EQUITY SHARES AGGREGATING TO Rs. 551.66 MILLION BY SAGAR MILAN MEHTA (TOGETHER THE "OTHER SELLING SHAREHOLDERS" ALONG WITH THE PROMOTER SELLING SHAREHOLDERS AND PROMOTER GROUP SELLING SHAREHOLDERS IS COLLECTIVELY REFFERED TO AS THE "SELLING SHAREHOLDERS") ("OFFER FOR SALE" AND SUCH EQUITY SHARES, THE "OFFERED SHARES"). THE OFFER SHALL CONSTITUTE 30.54% OF THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

ANCHOR INVESTOR OFFER PRICE: Rs. 280 PER EQUITY SHARE OF FACE VALUE OF Rs. 2 EACH OFFER PRICE: Rs. 280 PER EQUITY SHARE OF FACE VALUE OF Rs. 2 EACH THE OFFER PRICE IS 140 TIMES OF THE FACE VALUE OF THE EQUITY SHARES OF Rs. 2 EACH

1. Our business is primarily concentrated and dependent on the sale of men's casual western wear and is vulnerable to variations in demand and changes in consumer preferences. We do not manufacture any apparel. Our revenue from operations is as follows:

2. Inability to predict customer demands and inability to maintain optimum inventory levels may lead to an adverse effect on our results of operations, financial condition and cash flows. Details of our inventory levels is provided below:

3. We enter into certain related party transactions in the ordinary course of business, and we cannot assure you that such transactions will not have an adverse effect on our business, results of operations and financial condition.

4. All our products are sold under a single brand, Mufti*. Any deterioration in public perception of our brand or any inability to effectively market our products, could affect our footfall and consequently impact our business, financial condition, cash flows and results of operations. Our advertisement and sales promotion expenses is as follows:

5. We operate in highly competitive markets in each of our product segments, in both offline and online channels and an inability to compete effectively may adversely affect our business, results of operations and financial condition. Further, any pricing pressure from our competitors may affect our ability to maintain or increase our product prices and, in turn, our revenue from product sale, gross margin and profitability, which may materially and adversely affect our business, cash flows, results of operations and financial condition.

6. While we design our products in-house, we rely on outsourcing the manufacturing of finished products to third- party manufacturing partners, without exclusivity arrangements, and are dependent on them for our finished goods. Any inability to obtain sufficient quantities of apparel of the requisite quality in a timely manner and at acceptable prices, or a slowdown, shutdown or disruption in such third party manufacturing partners' operations and performance, could adversely affect our business, cash flows, results of operations and financial condition.

We have engaged with the following number of manufacturing partners:

Value of our purchases from top ten and top five manufacturing partners and such amounts as percentage of our total cost of purchase of goods is as follows:

7. Our Subsidiary has incurred losses in the past and may incur losses in the future, which may have an adverse effect on our business and which may be required to be written off, in the event of further losses, which may adversely impact our profitability and results of operations. The total investment in the Subsidiary as on June 30, 2023 isRs. 21.40 million.

8. We are primarily dependent on offline sales. The majority of our revenue from operations (more than 90% in each of the previous three Fiscals) was derived from offline retail distribution channels. If we fail to grow our revenues from online sales, we will continue to remain dependant on offline sales channels and any attendant risks. Our revenue from our online distribution channels is as follows:

* Includes sales through our website and e-commerce marketplaces

9. Weighted average return on Net Worth for FY 2023, FY 2022 and FY 2021 is 20.86%.

10. Our ratio of Market capitalization / Revenue is higher than few of our listed peers.

11. The details of market capitalization to revenue, market capitalization to tangible assets and EV/E6ITDA on the

Floor Price and Cap Price including details of comparison done with industry peers is as follows:

Source: All the financial information for listed industry peers mentioned above is on a consolidated basis, except Go Fashion (India) Limited as there is no

consolidation and is sourced from the annual audited financial results of the listed industry peers

* All the values mentioned above are based on both continued and discontinued operations for the year ended March 31,2023.

Notes:

(1) The closing market price as on December4,2023 have been considered for the calculating the market capitalization and EVofthe listed industry peers

(2) Market capitalization /Revenue is calculated as market capitalisation as on December4,2023/Total revenue for the year ended March 31,2023.

(3) Market capitalization /Tangible assets is calculated as market capitalisation as on December 4,2023/Total tangible assets for the year ended March 31, 2023. Tangible assets shall Include all net assets excluding right of use assets (related total lease liabilities), intangible assets and deferred tax assets! liabilities (net)

(4) EV/EBJDTA is calculated as enterprise value (market capitalisation as on December 4,2023* Long and short term borrowings and Lease Liabilities cash and cash equivalents)/EBIDTA.

12.The average cost of acquisition of Equity Shares held by our Promoters and Selling Shareholders as on the date of the Red Herring Prospectus is as follows and Offer Price at upper end of the Price Band is 1280/-:

' Avenge cost of acquisition has been calculated after considering ati bonus issuances by the Company and spM of face value of Equity Shares pursuant to a resolution dated April 7.2023passed by the Board of Directors of the Company and dated April 18.2023 by the Shareholders of the Company.

*Also acting as the Selling Shareholders

13. The weighted average cost of acquisition of all shares transacted in the last eighteen months, one year andthree years preceding the date of the Addendum is as follows:

'As certified by Dileep & Prithvi, Chartered Accountants by way of their certificate dated December 21,2023.

@ Weighted average cost of acquisition has been calculated after considering all bonus issuances by the Company and split of face value of equity shares pursuant to a resolution dated April 7,2023 passed by the Board of Directors of the Company and dated April 18,2023 by the Shareholders of the Company.

14. The Floor Price is Nil times and the Cap Price is Nil times the weighted average cost of acquisition at which the Equity Shares were issued by our Company, or acquired or sold by our Promoters or Promoter Group or Selling Shareholders or shareholder(s) having the right to nominate director(s) on the Board in the last 18 months or three years preceding the date of the Prospectus are disclosed below:

Note: * There were no primary / new issue of shares (equity/convertible securities) other than Equity Shares issued pursuant to a bonus issue on April 7, 2023, in last 18 months and three years prior to the date of the Prospectus.

" Since, there were no secondary sales / acquisition of shares (equityi convertible securities) transactions in last 18 months from the date of the Prospectus, therefore weighted average cost of acquisition is Nil or not applicable.

15. The BRLMs associated with the Offer have handled 71 public issues in the past three years, out of which 24

'Issues handled where there were no common BRLMs

' In compliance with the proviso to Regulation 21A of the SEBI Merchant Bankers Regulations and Regulation 23(3) of the SEBIICDR Regulations, Keynote Financial Services Limited will be involved only in marketing of the Offer. Keynote Financial Services Limited has signed the due diligence certificate and has been disclosed as a BRLM for the Offer.

The Offer was made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957 read with Regulation 31 of the SEBIICDR Regulations and in compliance with Regulation 6{1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer was allocated on a proportionate basis to Qualified Institutional Buyers ('QIBs') ("QIB Portion"), provided that our Company in consultation with the BRLMs, allocated up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations ("Anchor Investor Portion"), of which one-third was reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares were added to QIB Portion (other than the Anchor Investor Portion) (the ' Net QIB Portion ') Further, 5% of the Net QIB Portion was available for allocation on a proportionate basis only to Mutual Funds, subject to valid Bids being received at or above the Offer Price, and the remainder of the Net QIB Portion was available for allocation on a proportionate basis to all QIBs, including Mutual Funds. Further, not less than 15% of the Offer was available for allocation to Non-lnstitutional Bidders and not less than 35% of the Offer was available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. One-third of the Non- lnstitutional Portion was available for allocation to Non-lnstitutional Bidders with a Bid size of more than 7200,000 and up to 71,000,000 and two-third of the Non-lnstitutional Portion was available for allocation to Non-lnstitutional Bidders with a Bid size of more than 71.000,000 provided that under-subscbption in either of these two sub-categories of the Non- lnstitutional Portion may be allocated to Non-lnstitutionai Bidders in the other sub-category of Non-lnstitutional Portion in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All potential Bidders (except Anchor Investors) are mandatorily required to participate in the Offer through the Application Supported by Blocked Amount ("ASBA") process by providing details of their respective ASBA accounts and UPI ID in case of UPI Bidders (defined herein), as applicable, pursuant to which their corresponding Bid Amount will be blocked by the Self Certified Syndicate Banks ('SCSBs') or by the Sponsor Bank(s) under the UPI Mechanism, as the case may be. to the extent of the respective Bid Amounts. Anchor Investors are not permitted to participate in the Offer through the ASBA process. For details, see Offer Procedure" on page 328 of the Prospectus. The bidding for Anchor Investor opened and closed on December 18,2023. The Company reoeived 11 applications from 11 Anchor Investors for 6,321.734 Equity Shares. The Anchor Investor Offer Price was finalized at 7280 per Equity Share. Atotal of 5,890.488 Equity Shares were allocated under the Anchor Investor Portion aggregating to 71.649.336.640.

The Offer received 2,325,865 applications for 720,094.358 Equity Shares (including applications from Anchor Investors and prior to rejections) resulting in 36.67 times subscription. The details of the applications received in the Offer from Retail Individual Bidders, Non-lnstitutional Bidders and QIBs are as under (before rejections):

Final Demand

Asummary of the final demand as per NSE and BSE as on the Bid/Offer Closing Date at different Bid prices is as under:

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being BSE on December 22,2023.

A. Allotment to Retail Individual Bidders (After Rejections) (including ASBA Applications)

The Basis of Allotment to the Retail Individual Bidders, who have bid at cut-off or at the Offer Pnce of Rs. 280 per Equity, was finalized in consultation with BSE. This category has been subscribed to the extent of 19.47 times. The total number of Equity Shares Allotted in Retad Individual Bidders category is 6.872,236 Equity Shares to 129,664 successful applicants. The category-wise details of the Basis of Allotment are as under:

B. Allotment to Non-lnstitutional Bidders (more than *0.20 million and upto *1 million) (After Rejections) (including ASBA Applications)

The Basis of Allotment to the Non-lnstitutional Bidders (more than ? 0.20 million and upto 71 million), who have bid at the Offer Price of 7 280 per Equity Share or above, was finalized in consultation with BSE This category has been subscribed to the extent of 54.72 times The total number of Equity Shares allotted in this category is 981.748 Equity Shares to 1.323 successful applicants The category-wise details of the Basis of Allotment are as under (Sample)

C. Allotment to Non-lnstitutional Bidders (more than?1 million) (After Rejections) (including ASBA Applications)

The Basis of Allotment to the Non-lnstitutional Bidders (more than ?1 million), who have bid at the Offer Price of ?280 per Equity Share or above, was finalized in consultation with BSE. This category has been subscribed to the extent of 51.04 times. The total number of Equity Shares allotted in this category is 1.963,496 Equity Shares to 2.646 successful applicants. The category-wise details of the Basis of Allotment are as under. (Sample)

D. Allotment to QIBs (After Rejections)

Allotment to QIBs. who have b<d at the Offer Price of 7280 per Equrty Share or above, has been done on a proportionate basis in consultation with BSE. This category has been subscribed to the extent of 106.87 times of Net QIB portion. As per the SEBIICDR Regulations. Mutual Funds were allotted 5% of the Equity Shares of Net QIB portion available i.e. 196.350 Equity Shares and other Ql Bs and unsatisfied demand of Mutual Funds were allotted the remaining available Equity Shares i.e. 3.730,642 Equity Shares on a proportionate basis. The total number of Equity Shares allotted in the Ql B category is 3,926,992 Equity Shares, which were allotted to 85 successful Applicants.

E. Allotment to Anchor Investors (After Rejections)

The Company, in consultation with the BRLM. have allocated 5.890.488 Equity Shares to 11 Anchor Investors (through 11 Anchor Investor Application Forms) (including 3 domestic

Mutual Funds through 3 schemes) at an Anchor Offer Issue Price at 7280 per Equity Share in accordance with SEBI ICDR Regulations. This represents 60% of the QIB portion.

The IPO Commrttee of our Company at its meeting held on December 22,2023 has taken on record the basis of allotment of Equity Shares approved by the Designated Stock Exchange, being BSE and has transferred the Equity Shares to various successful applicants. The Allotment Advice Cum Refund Intimation and'or notices have been dispatched to the address of the investors as registered with the depositories. Further, instructions to the SCSBs have been issued for unblocking of funds and transfer to the Public Offer Account on December 22,2023 and the payments to non-syndicate brokers have been issued on December 26,2023. In case the same is not received within ten days, investors may contact the Registrar to the Offer at the address given below. The Equity Shares allotted to the successful allottees have been uploaded on December 26,2023 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has filed the Listing application with BSE and NSE on December 26. 2023. The Company has received the listing and trading approval from BSE 8 NSE. and trading will commence on December 27.2023.

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.

INVESTORS PLEASE NOTE

These details of the Allotment made was hosted on the website of Registrar to the Offer, Link Intime India Private Limited at www.linkintime.co.in

All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting full name of the First/ Sole applicant. Serial number of the Bid cum Application form number. Bidders DP ID. Client ID. PAN, date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares bid for, name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below.

Link Intime India Private Limited

C-101, r Floor, 247 Park. L.B.S. Marg, Vikhroli (West), Mumbai 400 083 Maharashtra, India. Telephone: +91 81081 14949; E-mail: credobrands.ipo@linkintime.co.in

Website: www.linkintime.co.in. Investor grievance e-mail: credobrands.ipo@linkintime.co.in; Contact Person: Shanti Gopalkrishnan; SEBI Registration No.: INR000004058

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF CREDO BRANDS MARKETING LIMITED.

CREDO BRANDS MARKETING LIMITED has filed a Prospectus dated December 21.2023 with the RoC (the "Prospectus"). The Prospectus is made available on the website of the SEBI at www.sebi.gov.in as well as on the websrtes of the BRLMs i.e., DAM Capital Advisors Limited at www.damcapital.in. ICICI Securities Limited at www.icicisecurities.com and Keynote Financial Services Limited at www.keynoteindia.net, the website of the NSE at www.nseindia.com and the website of the BSE at www.bseindia.com and the website of the Company at www.credobrands.in. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risks, please see the section titled "Risk Factors" beginning on page 27 of the Prospectus. Potential investors should not rely on the DRHP for making any investment decision.

The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws in the United States, and unless so registered, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to. the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold outside the United States in "offshore transactions' as defined in and in refeance on Regulation S and the applicable laws of each jurisdictions where such offers and sales are made. There will be no public offering of the Equity Shares in the United States.