The Board of Directors of this micro-cap company approved the raising of funds via a preferential issue worth around Rs 15 crores. In the past six months, the company’s stock has gained over 60 percent for its shareholders.
With a market capitalization of Rs 684.64 crores, the stocks of Khadim India Limited, the second largest retail footwear brand in India, closed at Rs 381 on Friday slipping around 0.60 percent as compared to the previous closing levels of Rs 383.20 apiece.
The company, via a recent exchange filing with the Bombay Stock Exchange (BSE), intimated that its Board of Directors has approved the raising of funds by way of preferential issue of Fully Convertible Equity Share Warrants on a private placement basis. The same will be issued to one of the Promoters and a few other identified Non-Promoter entities.
The company will issue around 4.09 lakh equity share warrants at a price of Rs 365 per share amounting to around Rs 15 crores, and, the same will be converted to equity shares within 18 months from the date of its allotment.
“The Company has been at the forefront of meeting the rising demand for superior quality of fashion footwear at an affordable price point. The preferential issue enables the stakeholders to participate in the growth trajectory of Khadim.”, commented Mr. Indrajit Chaudhuri, CFO of Khadim India.
During the recent financial years, the company has reported an increase in its prime business indicators such as operating revenues and after-tax profits. The former rose from Rs 591 crores during FY21-22 to Rs 660 crores during FY22-23, and, the latter, during the same time period, shifted up from Rs 6 crores to Rs 17 crores.
As per the shareholding pattern data for the quarter ended September 2023, the company’s Promoters hold a 60.27 percent stake, Public (retail) investors hold 34.06 percent, and the Domestic Institutional Investors (DIIs) hold the remaining 5.67 percent stake in the company.
Khadim India Limited is a company based in India that is engaged in the business of wholesale as well as retail footwear. Generating a majority of revenue from operations within the country, the retail business operates through a wide range of stores catering to middle and upper-middle-income consumers in metros and Tier I – Tier III cities.
Written by Amit Madnani
