SSIPL Retail Pvt Ltd, a company which retails and manufactures for brands like Reebok and Nike, has filed for an IPO – looking to divest 27.24 per cent stake.

Besides fresh issue of shares that will fetch the company over Rs 75 crore, the issue involves a secondary sale of shares by exiting investor Haclyon. The company is also backed by Tano Capital.

Halcyon is completely exiting from the company through its entity HBP Holdings. Currently, Tano Capital holds 17.13 per cent stake in the firm while Future Ventures’ Indus League Clothing owns 6.57 per cent stake. IDFC also has 3.29 per cent stake in the company.

From the proceeds of the issue, around Rs 37.3 crore will be used to expand the network of its EBOs of Nike. Around Rs 20.7 crore will be used for investment in SSIPL Lifestyle, its subsidiary, to expand EBOs of Lotto and Beverly Hills Polo Club. Around Rs 18.1 crore from the issue will be used to buy the redeemable preference shares (along with a premium) held by Halcyon.

SSIPL is one of the largest retailers for Nike in India and also designs and manufactures for brands like Nike, Reebok, PUMA, Lotto, Skechers and its own brand Sierra. It is also the master franchise of Levi’s apparel, footwear and accessories. Its subsidiary SSIPL Lifestyle is a retailer of brands like Lotto and Beverly Hills Polo Club. One of its step-down subsidiaries is a retailer for Levi’s and United Colors of Benetton. It also operates concept stores and multi-brand outlets like Shoe Tree and Value Station. SSIPL Retail has a network of 238 exclusive brand outlets and 12 concept stores/MBOs.

SSIPL reported a total consolidated income of Rs 378 crore with a net profit of Rs 6.1 crore for FY11. BOB Capital Markets and SPA Merchant Bankers are the book-running lead managers to the issue.


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