Khadim India Limited (KIL) has filed Draft Red Herring Prospectus (DRHP) with the market regulator SEBI for its Initial Public Offering (IPO). The company plans to raise INR50 crore (INR500 million) through the IPO which will also include an offer for sale (OFS) of up to 6,574,093 equity shares by existing shareholders. Private equity investor Fairwinds will offload its shares through the OFS route in Khadim India IPO. The PE firm invested about INR90 crore in Khadim in 2013 which is believed to result in returns of 3 to 4 times.
Net Proceeds from Khadim India IPO will be utilized towards prepayment or scheduled repayment of all or a portion of term loans and working capital facilities availed by the company and for general corporate purposes.
Axis Capital Limited and IDFC Bank Limited are the book running lead managers to Khadim India IPO and Link Intime India Private Limited is the Registrar.
Khadim India’s core business objective is ‘Fashion for Everyone’, and the company has established an identity as an ‘affordable fashion’ brand, catering to the entire family for all occasions. As of 31 March 2017, it operated 829 ‘Khadim’s’ branded exclusive retail stores across 23 states and one union territory in India, under the retail business vertical. Further, it had a network of 357 distributors in fiscal 2017, under the distribution business vertical.
Incorporated in 1981, the footwear manufacturer reported a gross turnover of INR650 crore and a profit of INR40 crore in the year ended 31 March 2017.
Khadim India IPO: Public offer from the second largest footwear retailer
Khadim India is one of the leading footwear brands in India, with a two-pronged focus on retail and distribution of footwear. The company is the second largest footwear retailer in India in terms of number of exclusive retail stores operating under the ‘Khadim’s’ brand, with the largest presence in East India and one of the top three players in South India, in fiscal 2016. Khadim India also had the largest footwear retail franchisee network in India in fiscal 2016.