Khadim India stock jumped as much as 4 percent on higher volumes after the company said it would consider hiving off its distribution business into a new wholly-owned subsidiary. The stock was trading at Rs 277.25 at 1:44 pm.
Khadim India's board of directors will meet on September 29 to consider and approve the scheme of arrangement between the company and KSR Footwear Limited, it said in a regulatory filing.
The company primarily operates through its retail and distribution business verticals, and under the new scheme of arrangement, will make the decision regarding the demerger of its distribution business into KSR footwear.
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On August 10th, Khadim India Limited announced that they had received "in-principle approval" to demerge their distribution business. This will be done through a Scheme of Arrangement with a new wholly-owned subsidiary of Khadim. According to this scheme, the entire shareholding of the resultant company will be held directly by the shareholders of Khadim, proportionate to their shareholding in Khadim.
Khadim India was established in 1981 and started with whole-selling and distribution of branded basic utility footwear. The company has a retail presence in 24 states and 3 union territories in India. According to the company, it is the 2nd largest footwear retailer in India and one of the top 3 players in South India.
Khadim India shares have surged 42.4 percent in the last 6 months.
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