The Roy Burmans of Khadim’s have decided to raise a little over Rs 95 crore by taking the footwear and lifestyle retailing company, Khadim India Ltd, to the capital market, where the promoters, who currently own 90% stake, will dilute their holdings in the company to 61.94%.
Interestingly, with Partha Roy Burman, who was the victim of a daring abduction in 2001, having left the company in March and given up his directorship, the promoters comprise mainly of his brother, Siddhartha Roy Burman, who is the managing director, and their father, Satya Prasad Roy Burman, who is the chairman and a whole-time director.
The company has just filed the draft prospectus with the Securities and Exchange Board of India for issuing 55 lakh equity shares of Rs 10 each at a price to be determined through the book building process. The document has revealed that Khadim’s will invest Rs 31 crore to set up exclusive footwear retail stores,
Egaro Lifestyle stores with Rs 42.50 crore, and a central distribution centre with Rs 9 crore.
The company is investing a total of Rs 95.38 crore. To fund it, the company is raising Rs 33 crore through a term loan and Rs 10.60 crore through a preferential allotment to outsiders.
The net worth of the company has been ascertained at Rs 48.75 crore. It achieved sales of Rs 149.45 crore in fiscal 2007, up from Rs 131.53 crore in 2006. Bottom line over this period increased from Rs 2.75 crore to Rs 3 crore.
As far as footwear is concerned, Khadim’s plans to set up 74 exclusive stores in 2007-08, out of which 39 will be owned by the company and 35 by exclusive dealers. Close to Rs 31.40 crore will be invested to set up the 39 stores.
As for Egaro, its lifestyle retail stores, the company has started operating three stores in and around Kolkata. Retail space for three additional outlets at Asansol, Burdwan and Sodepur has already been booked. These stores will be operational by 2008-09.