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Fairwinds PE-backed footwear firm Khadim files for IPO

Fairwinds Private Equity-backed footwear retailer Khadim India Ltd has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).

VCCircle had first reported in April that Khadim was considering an IPO and had hired investment bankers, nearly a decade after it first attempted to go public.

The IPO comprises a fresh issue of shares worth Rs 50 crore, besides a secondary sale of 6.57 million shares by Fairwinds and Siddhartha Roy Burman, chairman and managing director of Khadim India.

Fairwinds, which first invested in the company in 2013, will exit its entire 33.83% stake, representing 5.85 million shares.

The issue is estimated to be worth Rs 550-600 crore and will see a stake dilution of roughly 38% on a post-offer basis, said a person familiar with the matter.

The company is looking to float the IPO in the third quarter of the year, the person added.

Khadim competes with homegrown footwear companies and listed peers such as Relaxo Footwears Ltd, Bata India Ltd, Sreeleathers Ltd and Liberty Shoes.

It had previously filed for an IPO in 2007. It planned to sell 5.5 million shares, or a 30% stake, to raise a tad less than Rs 100 crore, according to the company’s DRHP then filed with SEBI.

Private equity firm WestBridge Capital-backed Relaxo and Bata India, which are listed on stock exchanges, command a market value of Rs 5,753 crore and Rs 7,065 crore, respectively. WestBridge increased its stake in Relaxo to 2.1% in the three months ended June 2016, after picking up 1.5% stake in 2016.

to be updated....

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