PE-backed footwear retailer SSIPL refiles for IPO
Photo Credit: Courtesy: SSIPL

SSIPL Retail Ltd (formerly Moja Shoes Ltd) has refiled its draft red herring prospectus (DRHP) with securities market regulator SEBI to float its initial public offer (IPO). The Delhi-based firm, which manufactures shoes for various international brands and also operates retail stores of Nike, has sought to raise fresh capital besides providing an exit to one of its PE investors, Tano Capital.

Although the size of the issue is not disclosed, it is estimated to be around Rs 200-250 crore.

This is the third time that the footwear maker and retailer is filing documents for a public issue. The company had previously filed documents for an IPO in September 2011 when it was looking to raise over Rs 75 crore besides giving an exit to one of its two private investors, Halcyon. However, it later withdrew the documents.

VCCircle had first reported in October 2013 that the company has revived its plan to go public and has appointed Axis Capital and IDFC Securities as bankers.

In March this year, it had again filed DRHP to float the IPO and had received the approval in June. However, it has withdrawn that application too and simultaneously filed a new DRHP this week.

The firm counts Oman India Joint Investment Fund (OIJIF), a private equity fund sponsored by Oman’s sovereign wealth fund State General Reserve Fund and India’s largest lender State Bank of India, and Tano Capital as investors. OIJIF bought 17.55 per cent stake for around Rs 100 crore through a mix of share purchase from promoters, a previous investor and subscription to some fresh shares early this year.

One of its two previous PE investors Halcyon has already exited ahead of the proposed public issue, partly through stake sale to OIJIF and its remaining holding, through preference shares, was redeemed by SSIPL. However, Abhay Soi, co-founder of Halcyon, remains a private shareholder in his individual capacity.

SSIPL has tweaked the IPO terms marginally from what it had filed early this year.

Here's a snapshot of the proposed IPO:

  • Fresh issue to raise Rs 72 crore besides an offer-for-sale of 1.58 million shares by Tano Capital and 0.4 million shares by private shareholder Rajesh Sahgal. Early this year, it had said it would issue 1 million fresh shares without sharing details on the proceeds, though it had indicated the fresh issue would raise a little over Rs 76 crore.
  • Bankers: Axis Capital and Ambit Corporate Finance are managing the issue. IDFC Securities that was part of the process in the early attempt to float the IPO early this year is not involved with the issue.

Objective of the issue

  • The firm plans to raise up to Rs 72 crore through the fresh issue of shares, against over Rs 76 crore it sought to scoop up early this year.
  • Of this, the firm would use Rs 10.5 crore to add 10 exclusive branded outlets (EBOs) of Nike (against the previous plan of Rs 14.3 crore to add 30 EBOs for Nike); Rs 33 crore to invest in the subsidiary SSIPL Lifestyle to open 120 EBOs and MBOs of brands Levi’s, Lotto, UCB, Clarks, Mmojah, ShoeTree and Value Station (previous plan to spend Rs 41.8 crore to open 175 EBOs and MBOs of same brands); Rs 13.3 crore to invest in existing manufacturing facilities (earlier investment plan of close to Rs 20 crore).


  • Formed in 1994 as a footwear maker with its first manufacturing plant at Kundli in Haryana in 1995, SSIPL is now a manufacturer, marketer, distributor and retailer of sports and lifestyle products, including footwear, apparel, accessories and equipment. It is associated with brands such as Nike, Puma, Lotto, Levi's, Clarks and United Colors of Benetton across the retail and manufacturing spheres. SSIPL also retails certain domestic brands such as Mmojah and Cobblerz.
  • It became the first authorised maker of Nike brand shoes in India in 1996 and claims it is the largest retail partner for Nike and Lotto in India.
  • It is led by Rishab Soni (managing director) who is also one of the four co-promoters along with Sunil Taneja (CFO), Amit Mathur and Kabir Taneja.
  • As on September 30, 2015, it had a network of 437 stores (bulk of it owned and operated by the firm itself), spread across 99 cities. Of these, it operates 407 EBOs for Nike, Levi’s, Lotto, United Colors of Benetton, Clarks and Mmojah. Of the total, 383 are EBOs of international brands, 24 EBOs of Mmojah, and 30 outlets are concept stores under the name of ShoeTree and Value Station.
  • It has three multi-brand concept stores. ShoeTree retails casual footwear brands, including Clarks, Johnston & Murphy, Puma, Carlton London and Cobblerz. ShoeTree Sports retails brands like Nike, Lotto, Puma and Crocs. Value Station retails Nike, Levi's, Lotto and United Colors of Benetton.
  • It manufactures footwear for certain international brands such as Nike, Puma, Lotto and United Colors of Benetton. SSIPL has six manufacturing facilities across Haryana, Himachal Pradesh and Uttarakhand with a total production capacity of 4.89 million pairs of footwear and thong per annum. The company claims it is the largest authorised manufacturer of Nike footwear in India and the largest footwear manufacturer for Puma and Lotto for the Indian market.
  • Besides making shoes for various brands, it has its own brand Sierra. This was launched in 2011.


  • The company's net sales  almost tripled over a four-year period to Rs 900.7 crore for the year ended March 31, 2015. In the same period, its net profit  tripled to Rs 20.5 crore.
  • While the firm continues to see strong growth in its top-line, it has been facing pressure on margins. Its net profit has moved up barely 10 per cent in the last two years even as its revenues rose by a third. For the three months ended June 30, 2015, SSIPL's net revenue was Rs 217.9 crore with a net profit of Rs 4.12 crore.


Tano Capital had invested over Rs 17 crore in the company in two tranches in 2006 and 2007. It had also picked additional shares in 2007 when some group firms were merged with SSIPL. It is not clear if it shelled out more money for that. It currently holds 15.83 per cent stake and will exit SSIPL in the proposed IPO.

SSIPL is the second Tano-backed firm to file for an IPO in this year after agri commodities-focused supply chain firm Shree Shubham Logistics Ltd. Tano Capital part-exited the logistics firm in which it invested in 2013.

New PE investor OIJIF is now the largest non-promoter shareholder of the firm.

Future Lifestyle Fashions Ltd is another investor in the company with 6.07 per cent stake.

Leave Your Comment(s)