The IPO (initial public offering) of the Kolkata-based footwear retailer Khadim\u2019s India opens today. Khadim\u2019s India is looking to raise about Rs 543.06 crore at the upper end of the price band. The share sale will remain open for three days bidding process starting 2 November to 6 November. The company has set a price band of Rs 745-750 per equity share of a face value Rs 10 each which implies that floor price is 74.5 times and cap price is 75 times of the face value, according to a PTI report. The company\u2019s promoter Siddhartha Roy Burman would sell 7.22 lakh equity shares, while Fairwinds Trustees Services Pvt Ltd would offer 58.52 lakh shares. The company will not receive any proceeds from the offer for sale. The net proceeds from the fresh issue are proposed to be utilised towards prepayment or scheduled repayment of all or a portion of term loans and working capital facilities availed by the company and for other general corporate purposes. Here\u2019s what top brokerages have to say about the issue. Angel Broking \u201cIn terms of valuations, the pre-issue P\/E works out to 42.2x its FY2017 earnings (at the upper end of the issue price band), which is slightly lower compared to its peers like Bata. However, Bata has strong presence across India with well-established brand and its entire revenue comes from retail business. On other hand, KIL\u2019s most of the revenue comes from East geography mainly from Kolkata and retail revenue is only 70% and balance from distribution business. Despite the above positives factors and lower valuations compared to Bata, we however, believe that the current valuation for this company is fully factored in the price, which doesn\u2019t provide further upside for investors. Hence, we recommend Neutral rating on the issue,\u201d noted the research firm in its IPO report. Nirmal Bang Securities The firm has identified strengths of the company including affordable fashion products; extensive geographical reach; asset light model leading to higher operating leverage and a very good market strategy. Pointing to the concerns, Nirmal Bang says that Khadim India is heavily dependant on franchisees for retail business. Further, the company has Significant working capital expenses and faces stiff competition from other retailers. \u201cThe company\u2019s two-pronged market strategy that straddles efficiently across retail and distribution models and asset light model leading to higher operating leverage makes the offer a value play and a long term prospect,\u201d noted the research and brokerage firm.