Kolkata-based footwear retailer Khadim India Ltd has filed a draft prospectus with capital markets regulator SEBI to raise an estimated Rs 550-650 crore through an initial public offering (IPO). The offer comprises of a fresh issue of equity shares aggregating up to Rs 50 crore and an offer for sale of up to 6,574,093 equity shares by the existing PE partner Fairwinds (formerly Reliance Equity Advisors).
In 2013, Fairwinds had invested Rs 90 crore for a 34 per cent stake in the company while the remaining 66 percent stake is held by the promoters. The IPO would also lead to a six to seven per cent dilution of the promoter holding in the company.
The book running lead managers to the issue are Axis Capital and IDFC Bank. Khadim will use fresh issue proceeds towards repayment of term loans and working capital facilities and for general corporate purposes.
Khadim’s was established in 1965 in Chitpur by Lt. Sri Satya Prasad Roy Burman. In 1993 Khadim’s forayed into retailing and to emerge not only as a popular fashion footwear brand but also as one of the leading organised footwear retailers in India. As on 31 March 2017, Khadim’s had 830 branded exclusive retail outlets in 24 states.
Khadim India Ltd had previously filed for an IPO in 2007. It had planned to sell 5.5 million shares, or a 30% stake, to raise about Rs 100 crore, according to the company’s Draft Red Herring Prospectus then filed with SEBI.
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Listed companies in footwear retail comprise Bata, Relaxo and Liberty. Compared to Bata, the largest retailer with 1,900 stores, Khadim’s store count is almost half, out of which about 190 are company owned stores. Although Khadim’s has a pan-India presence, the footwear retailer has most of its outlets in the Eastern part of India.