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Khadim India IPO Review – Analysis, Details,Opening Date, Issue Price, Allotment Status, Listing

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Khadim is one of the leading organized footwear retailers in India and involved in whole-selling and distribution of branded basic utility footwear. Khadim’s has grown to 829 Khadim’s branded exclusive retail store outlets as on March, 31,2017 in 23 states and 1 Union Territory nationally

Issue Details of Khadim India IPO:   

  • IPO Open:  2nd Nov – 6th  Nov 2017
  • Issue Price band: Rs 745 – 750
  • Issue Size:  Rs crore
  • Market lot:   20 shares
  • Minimum Investment:  15000 (Rs 750  per share)
  • Max Investment for Retail Investor – xx shares
  • Book Running Lead Managers:   Axis Capital
  • Registrar: Link Intime
  • Listing: BSE/NSE
  • Download – Khadim India IPO Red Herring Prospectus

Khadim India IPO Grey market Premium :

  • 22.10.2017 GMP Rs  per equity share

IPO Issue Allocation:

  • Qualified institutional buyers (QIBs) – 50% of the offer.
  • Non-institutional bidders –  15% of the offer.
  • Retail individual bidders  – 35% of the offer.

Background:

The compnay 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.

As at March 31, 2017, we operated 829 ‘Khadim’s’ branded exclusive retail stores across 23 states and one union territory in India, through our retail business vertical. Further, we had a network of 357 distributors in fiscal 2017, in our distribution business vertical.

Industry Overview: 

Top Shareholdings: Top Shareholders:

  • Siddhartha Roy Burman:  12.56%
  • Knightsville Private Limited: 50.51%
  • Fairwinds: 33.83%

Objective of the 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.

Anchor Investors:  One day before the issue.

Financials:

 in crores Revenue Growth PAT Growth
2017 626 16% 30.7 22%
2016 539 16% 25.2  
2015 465 -18% -18.6  
2014 483 12% 12.1 36%
2013 425   8.9  
         

The company has long term liabilitie sof Rs 10 crores which is not too high.

EPS for the last 3 years is 17.78  (2017), 14.59 (2016) and -12 (2015).

At the issue price of Rs 750, the PE ratio of 42 seems too high.

Valuation as compared to its peers: 

Similar Companies CMP Market Cap PE Ratio
Bata India  776  9972  59
Relaxo  529  6354 51
Liberty 247 421 86

Brokerage Recommendations: 

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Should you invest:  The IPO price seems reasonable as compared to its listed peers. As the company has good brand and reasonable price, the members can consider to invest in this IPO.

If you have any queries related to this article or any other personal finance query ( Investment, Taxation etc), please comment below

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The author is a Chartered Accountant and loves to write about Personal Finance, Wealth Management, Taxation etc. Disclaimer - The articles on this website is for informational and knowledge purposes and should not be treated as financial advice, Please consult your financial advisor before taking any investment decision.

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