Khadim India Limited IPO (Khadim India IPO)
Khadim India IPO is finally approved by SEBI. The company is coming up with initial public offering of 50 Crore. Khadim India was incorporated in the year 1981. It is one of the leading footwear brand in the country. A Kolkata based footwear company and second largest footwear retailer in India. The company has largest presence in East India whereas it is third largest player in footwear industry in India. According to the stats of 2016, Khadim India was the largest footwear retail franchisee network in the fiscal year 2016.
Khadim India operates its business through its exclusive retail stores targeting mainly middle and upper middle income consumers in metropolitan cities. The company has total of 827 exclusive Khadim exclusive retail stores. Out of this, 167 are exclusively owned by the company whereas rest stores are franchisee based retail stores. It has distribution network which comprises of 357 distributors in fiscal 2017 that caters the demand of middle and upper middle consumers in the metros. Furthermore, the company is also involves in institutional sales and exports.
Khadim India deals in footwear industry and is the one of the leading footwear brand in the country. It basically operates its business through exclusive retail stores which are company owned or part of its franchisee strategy. It has a wide distribution network which constitutes 20% of its net revenue. The company has two owned manufacturing facilities and two outsourced manufacturing facilities. The company is a good investment because of the following reasons –
- Second largest footwear retailer in India.
- Affordable brand across all over the country.
- A very strong presence in South India and East India.
- A great retail and distribution network.
- Operates on asset light model which enhances its operating leverage.
Siddhartha Roy Burman and Knights Ville Private Limited are the promoters of the company. Siddhartha Roy Burman and Tanushree Roy Burman are the directors of the company. Knights Ville Limited is the holding company of the Khadim India Limited.
Objective of the Issue
The offer is a combination of offer for sale and fresh issue by the company.
In offer for sale, only selling shareholders will receive the proceeds of the offer for sale.
Company can only use Fresh Issue for meeting out out its various purposes which are as follows –
- Prepayment or scheduled repayment of all or a portion of term loans and working capital facilities availed by the Company;
- General corporate purposes.
Khadim India – Company Financials
This is the summary of Khadim India Limited Company’s financial information of the last 5 years in consolidated form:
|Particulars||For the year/period ended (in Rs. Crores)|
|Profit After Tax (PAT)||8.9||12.1||-18.7||25.2||30.8|
Valuation of Khadim India Limited
- Earnings Per Share (EPS): Rs. 17.78
- Price/Earnings (P/E) ratio: To be updated
- Return on Net Worth (RONW): 16.61%
- Net Asset Value (NAV): Rs. 107.04 per share
Khadim India Limited Issue Details
- IPO Open Date – 2 November 2017
- Issue Size – Fresh Issue of [.] Equity Shares of Rs 10 aggregating up to Rs 50.00 Cr
Offer for Sale of 6,574,093 Equity Shares of Rs 10 aggregating up to Rs ….. Cr
- Face Value – Rs 10 per share
- Issue Price – Rs 745 – 750 per equity share
- Lot size – 20 shares
- Minimum order quantity – 20 shares
- Listing Stock exchanges – NSE and BSE