Khadim India is one of the leading footwear brands in India. It is Kolkata based second largest footwear company. This company operates exclusive retail stores under the ‘Khadims’ brand with major presence in East India. Khadim India operates through two business verticals, retail and distribution. This bull market year Khadim is also launching their initial public offering for the investors. Let us discuss Khadim India Limited IPO Review and its date, price, draft prospectus and grey market premium through this post.
About Khadim India Limited IPO:
- IPO opens on – November 2, 2017
- IPO closes on – November 6, 2017
- Face value – Rs 10 Per Equity Share
- Issue price – Rs. 745 – Rs. 750 Per Equity Share .
- Issue type – Book Built Issue IPO.
- Offer For Sale – 6,574,093 shares.
- Minimum lot – Nil.
- Minimum order quantity – Nil.
- Retail Allocation – 35%
- Issue size – Fresh Issue of [.] Equity Shares of Rs 10 aggregating up to Rs 50.00 Cr and Offer for Sale of 6,574,093 Equity Shares of Rs 10 aggregating up to Rs [.] Cr.
- Listing exchange – BSE, NSE.
- DRHP – Click here.
Objectives of the issue:
- The Offer for Sale – The Selling Shareholders will receive the proceeds of the Offer for Sale. Company will not receive any proceeds from this.
- The Fresh Issue – The Net Proceeds from the Fresh Issue are –
1. Prepayment or scheduled repayment of all or a portion of term loans and working capital facilities availed by the Company.
2. General corporate purposes.
About The Company –
- Khadim India Limited was incorporated in 1981.
- This company has over 829 ‘Khadims’ branded exclusive retail stores, and 167 are company owned and operated stores and remaining are franchisee operated stores.
- Khadims’s retail business constitutes over 70% of its net revenue and 85% of products sold through its retail stores are manufactured by outsourced vendors.
- This company’s distribution business operates through a wide network of distributors catering to lower and middle income consumers and over 20% of its net revenue.
- Khadims have a network of 357 distributors.
- A large portion of company’s products sold through distributors are manufactured by the company at its own manufacturing facilities and through contract manufacturing facilities.
- Khadim India Limited is strong presence in East and South India.
Promoters of the company :
- Siddhartha Roy Burman is Promoter, Chairman and Managing Director of this company.
- Knightsville Private Limited corporate Promoter and holding company of Khadim India Limited.
Khadim India Limited IPO Review: Khadim is a well established brand since long in India. The Indian markets are making new highs and many small, medium as well as large sized companies are opening their account in the IPO market. The grey market premium (GMP) is quoting at mere Rs. 30-35. Hence our Khadim India Limited IPO review keeps a NEUTRAL view on this issue. We do not see very high listing gains unless and until QIB subscription data jumps on the last day. Investors may think to apply for a long term perspective.