Footwear company SSIPL Retail has received capital markets regulator Sebi's approval to launch an initial public offering (IPO). It is the 14th firm to get the capital market watchdog'sapproval to launch an IPO since January.
The company had filed its draft red herring prospectus (DRHP) with Sebi through its lead merchant banker Axis Capital in March this year.
Securities and Exchange Board of India (Sebi) issued its final observations on the draft offer documents on May 25, which is necessary for companies to launch any public offer. This is the company's second attempt to hit the capital market.
As per the draft papers, SSIPL Retail would issue a total of over 29.88 lakh equity shares of the company. The offer would comprise of a fresh issue of up to 10 lakh equity shares, while existing shareholders Tano Mauritius India FVCI and Rajesh Sahgal would offer over 15.88 lakh shares and 4 lakh shares, respectively.
The proceeds of the issue would be utilised towards addition of 30 exclusive brand outlets (EBOs) for Nike and investment in its subsidiary SSIPL Lifestyle to enable it to expand its retail network by opening EBOs for brands like Lotto, Levis, United Colors of Benetton, Clarks and Mmojah.
In addition, funds would be used for expansion of its retail network by opening Multi Brand Outlets for brands ShoeTree, ShoeTree Sports and Value Station as well as for modernisation of the existing manufacturing facilities, among others.
The issue is being managed by Axis Capital, IDFC Securities and Ambit Corporate Finance. Earlier, SSIPL Retail had filed initial papers with Sebi in 2011 to float an IPO. However, the company did not go ahead with the plan.
Since the beginning of 2015, many companies, including Sadbhav Infrastructure Projects, Manpasand Beverages and UFO Moviez India, Navkar Corporation have already received Sebi's approval to launch their IPOs. Some of them have already hit the capital markets.
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