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Incorporated in 1981, Khadim India Limited is Kolkata based second largest footwear retailer in India. 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.
The retail business operates through its exclusive retail stores catering to middle and upper middle income consumers in large cities. Company has over 829 'Khadims' branded exclusive retail stores. Out of this, 167 are company owned and operated stores and remaining are franchisee operated stores. Company's retail business constitutes over 70% of its net revenue. Over 85% of products sold through its retail stores are manufactured by outsourced vendors.
The distribution business operates through a wide network of distributors catering to lower and middle income consumers. Company have a network of 357 distributors. The distribution business constituted over 20% of its net revenue. A large portion products sold through distributors are manufactured by the company at its own manufacturing facilities and through contract manufacturing facilities. Company have two owned manufacturing facilities and two outsourced manufacturing facilities.
Key Strengths
1. 2nd largest footwear retailer in India.
2. Offers affordable fashion across various price segments.
3. Retail and distribution business model.
4. Asset light model leading to higher operating leverage.
5. Strong presence in East and South India.
| Particulars | For the year/period ended (in Rs. million) | |||||
|---|---|---|---|---|---|---|
| 31-Mar-17 | 31-Mar-16 | 31-Mar-15 | ||||
| Total Assets | 4098.00 | 3522.98 | 3456.04 | |||
| Total Revenue | 6255.47 | 5388.30 | 4657.04 | |||
| Profit After Tax | 307.56 | 252.44 | (186.57) | |||
The Offer comprises a Fresh Issue by the Company and an Offer for Sale by the Selling Shareholders.
The Offer for Sale
The Selling Shareholders will recieve 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 proposed to be utilised towards the following objects:
1. Prepayment or scheduled repayment of all or a portion of term loans and working capital facilities availed by the Company; and
2. General corporate purposes.
| IPO Date | Nov 2, 2017 to Nov 6, 2017 |
| Listing Date | Tuesday, November 14, 2017 |
| Face Value | ₹10 per share |
| Price | ₹745 to ₹750 per share |
| Lot Size | 20 Shares |
| Issue Size | 7,240,759 shares of ₹10 (aggregating up to ₹543.06 Cr) |
| Fresh Issue | [.] shares of ₹10 (aggregating up to ₹50.00 Cr) |
| Offer for Sale | 6,574,093 shares of ₹10 (aggregating up to ₹[.] Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Company Promoters | The promoters os the Company are: Knightsville Private Limited is the holding company of Khadim India Limited and is currently not engaged in any other business. Siddhartha Roy Burman and Tanusree Roy Burman are the directors of Knightsville Private Limited. |
Khadim India IPO opens on Nov 2, 2017, and closes on Nov 6, 2017. The Khadim India IPO bid date is from Nov 2, 2017 10.00 A.M. to Nov 6, 2017 5.00 P.M. The Cut-off time for UPI Mandate confirmation is 5 PM on the issue closing day.
| Event | Tentative Date |
|---|---|
| Opening Date | Nov 2, 2017 |
| Closing Date | Nov 6, 2017 |
| Basis of Allotment | Nov 10, 2017 |
| Initiation of Refunds | Nov 13, 2017 |
| Credit of Shares to Demat | Nov 13, 2017 |
| Listing Date | Nov 14, 2017 |
The Khadim India IPO lot size is 20 shares. A retail-individual investor can apply for up to 13 lots (260 shares or ₹195,000).
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 20 | ₹15,000 |
| Retail (Max) | 13 | 260 | ₹195,000 |
| Name of the company | Total Revenue (Rs in million) | Face Value per Equity Share (Rs ) | P/E | EPS (Basic) (Rs ) | Return on Net Worth (%) | Net Asset Value/Share (Rs ) |
|---|---|---|---|---|---|---|
| Bata India Limited | 25503.56 | 5.00 | 42.31 | 12.37 | 12.00 | 103.04 |
| Relaxo Footwears Limited | 17435.70 | 1.00 | 47.85 | 10.24 | 20.33 | 50.34 |
| Khadim India Limited | 6255.47 | 10.00 | - | 17.78 | 16.61 | 107.04 |
| Liberty Shoes Limited | 4978.63 | 10.00 | 47.35 | 3.75 | 3.94 | 95.20 |
Although it appears highly priced offer compared to Bata which is trading around 59 P/E, moderate investment may be considered for medium to long term in this issue as it compares well with Liberty and Relaxo that are trading above 100 P/E. (as on 26.10.17) (Subscribe). Read detail review...
The Khadim India IPO is subscribed 1.90 times on Nov 6, 2017 7:30:00 PM. The public issue subscribed 2.34 times in the retail category, 2.45 times in the QIB category, and 0.18 times in the NII category. Check Day by Day Subscription Details (Live Status)
| Category | Subscription (times) |
|---|---|
| QIB | 2.45 |
| NII | 0.18 |
| Retail | 2.34 |
| Total | 1.90 |
| Listing Date | Tuesday, November 14, 2017 |
| BSE Script Code | 540775 |
| NSE Symbol | KHADIM |
| Listing In | B Group of Securities |
| ISIN | INE834I01025 |
| IPO Price | ₹750 per share |
| Face Value | ₹10 per share |
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Khadim India Limited
Kankaria Estate, 5th Floor,
6, Little Russell Street,
Kolkata 700 071
Phone: +91 33 4009 0501
Email: compliance@khadims.com
Website: https://www.khadims.com/
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: khadim.ipo@linkintime.co.in
Website: https://linkintime.co.in/
| Review By | Subscribe | Neutral | Avoid |
|---|---|---|---|
| Brokers | 9 | 1 | 0 |
| Members | 0 | 0 | 0 |
IPO Broker Recommendations
Khadim India IPO is a main-board IPO of 7,240,759 equity shares of the face value of ₹10 aggregating up to ₹543.06 Crores. The issue is priced at ₹745 to ₹750 per share. The minimum order quantity is 20 Shares.
The IPO opens on Nov 2, 2017, and closes on Nov 6, 2017.
Link Intime India Private Ltd is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.
The Khadim India IPO opens on Nov 2, 2017 and closes on Nov 6, 2017.
Khadim India IPO lot size is 20 Shares and the minimum order quantity is .
You can apply in Khadim India IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Nuvama, ICICI Bank, HDFC Bank and SBI Bank.
The finalization of Basis of Allotment for Khadim India IPO will be done on Nov 10, 2017, and the allotted shares will be credited to your demat account by Nov 13, 2017. Check the Khadim India IPO allotment status.
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