Khadim India given permission for public financing offer

By

Isabelle Crossley

Published
Sep 20, 2017

The capital markets regulator Sebi gave the shoe brand Khadim India the go ahead to roll out their public offering which is expected to raise between 550 and 650 crore rupees (approximately 83 to 98 million dollars) in investment.

In order to pay off certain loans and to use for general corporate purposes, Khadim India has been looking to raise some capital. The brand decided to open up an initial share sale offer and a fresh batch of equity shares are being issued at an estimated value of 50 crore rupees (approximately 7.5 million dollars). This will also be accompanied with a sale of pre-existing equity shares that will be sold by current shareholders. These equity shares total 6,574,093 and so will be a big sale for the shoe brand.

The initial public offering is expected to raise a substantial amount of capital and both Axis Capital and IDFC Bank are managing the operation. The Securities and Exchange Board of India (Sebi) and just granted the brand the necessary permission to go ahead with their sale after receiving their prospectus in July.

Khadim India was founded in 1965 as a shoe manufacturer, was incorporated in 1981 and concentrated on wholesale, and then entered into the retail business in 1993. The brand now has well over 800 retail outlets across India. The brand describes itself as a family brand and positions itself in the economy section of the market and products are also available on their e-commerce site.