About the Company:
Company is one of the leading footwear brands in India, with a two-pronged focus on retail and distribution of footwear.
Company was incorporated in 1981, and through the next several years, Company was involved in wholesaling and distribution of branded basic utility footwear and then forayed into the retail business in 1993.
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 South India.
Company is also operates one of the largest footwear retail franchisee network in India.
Company’s business objective is ‘Fashion for Everyone’, and Company has established an identity as an ‘affordable fashion’ brand.
As at June 30, 2017 company operated 853 ‘Khadim’s’ branded exclusive retail stores across 23 states and one union territory in India.
Out of 853 stores,around 168 stores are company owned and operated outlets (“COO”), and 685 are franchisee operated stores.
Further,Company had a network of 377 distributors in the three month period ended June 30, 2017 in their distribution business vertical.
Company operates through two distinct business verticals, “Retail” & “Distribution”, each with its predominantly own customer base, sale channels and product range.
Retail business operates through their exclusive retail stores catering to middle and upper middle income consumers in metros.
In the Retail business, Company presently promotes nine home-grown sub-brands of ‘Khadim’s’, which are ‘Pro’, ‘Lazard’, ‘Softouch’, ‘Cleo’, ‘British Walker’, ‘Turk’, ‘Sharon’, ‘Bonito’ and ‘Adrianna’.
Distribution business operates through a wide network of distributors catering to lower and middle income consumers in metros and Tier I – Tier III cities.
Management Team:
- Mr.Siddhartha Roy Burman (Designation: Chairman and Managing Director)
- Mr.Vinayak Vishwanath Kamath (Designation: Nominee Director)
- Ms.Namrata A. Chotrani (Designation: Nominee Director)
Objectives of the Issue:
Offer For Sale (OFS): (Around Rs.493 crores)
- Company will not receive any proceeds from the Offer for Sale.The proceeds from OFS will go to the selling shareholders.
Fresh Issue: (Around Rs.50 crores)
- Prepayment or scheduled repayment of all or a portion of term loans and working capital facilities availed by the Company.
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
|
Prepayment or scheduled repayment of all or a portion of term loans and working capital facilities availed by the Company. |
40.00 |
| General Corporate Expenses | 9.00 |
| Net Proceeds | 49.00 |
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th June 17 |
|---|---|---|---|---|---|---|
| Revenue | 425.7 | 483.05 | 465.7 | 538.8 | 625.54 | 179.76 |
| Net Profit | 8.91 | 12.14 | (-18.65) | 25.24 | 30.75 | 7.1 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW(%) | NAV |
|---|---|---|---|---|---|
| Khadim India Ltd | 10 | 17.78 | 42.18 | 16.61 | 107.04 |
| Bata India Limited | 5 | 12.37 | 59.78 | 12 | 103.04 |
| Relaxo Footwears Limited | 10 | 10.24 | 50.62 | 20.33 | 50.34 |
| Liberty Shoes Limited | 100 | 3.75 | 68 | 3.94 | 95.20 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 2nd November 2017 |
| Issue Closes on:. | 6th November 2017 |
| Issue Price | Rs.745 – 750 |
| Face Value | Rs.10 |
| Minimum Lot | 20 |
| Minimum Investment | Rs.15,000 |
| Retail Allocation | 35% |
| Issue Constitutes | 40.30% |
| Issue Size | Rs.543 cr |
| Market Cap | Rs.1347.39 cr |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 65,74,093 |
| Equity Shares Offered (Fresh) | 6,66,670 |
| Equity Shares Offered (OFS + Fresh) | 72,40,763 |
| Equity Shares Prior | 1,72,98,531 |
| Equity Shares after the issue | 1,79,65,201 |
Important Dates:
| Finalization of Basis of Alottment | on or Before 10th November2017 |
| Initiation of Refunds | on or Before 13th November2017 |
| Credit of Equity Shares: | on or Before 13th November2017 |
| Listing Date: | on or Before 14th November2017 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 05:30 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 14,50,389 | 0.00 | 0.092 | 2.45 |
| NII | 10,86,785 | 0.0018 | 0.0032 | 0.18 |
| Retail | 25,35,832 | 0.276 | 0.794 | 2.12 |
| Employee | ———– | —— | —– | —– |
| TOTAL | 50,73,006 | 0.1388 | 0.431 | 1.80 |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium | Kostak Rates |
|---|---|---|---|---|
| 13/11/17 | Khadim India | 745 – 750 | 28 – 30 | 240 – 280 |
Note: (GMP)Grey Market Premium is just an indicative price prevailing in the market ,However it keeps on changing on daily basis based on various conditions in the market.(So don’t apply by just looking at GMP)
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 17.78 | 42.18 | 16.61% | 107.04 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 5 – 10% |
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| Check IPO Allotment Status: |
|---|
Link InTime Websitehttps://linkintime.co.in/PublicIssues/ |
Note : To Find Answers to Various Questions on IPOs & Stock Markets Click Here.
| Company Contact Info: |
|---|
| KHADIM INDIA LIMITED Kankaria Estate, 5th Floor 6, Little Russell Street Kolkata 700 071 Tel: +91 33 40090501 Fax: +91 33 40090500 Email: compliance@khadims.com Website: www.khadims.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 1st Floor, 247 Park L B S Marg Vikhroli West Mumbai 400 083 Tel: +91 22 4918 6200 Fax: +91 22 4918 6195 E-mail: khadim.ipo@linkintime.co.in Investor grievance e-mail: khadim.ipo@linkintime.co.in Website: www.linkintime.co.in |
