SSIPL Retail IPO Coming
SSIPL Retail is a prominent retail company in India plans to raise capital, by an IPO. They have filed a draft red herring prospectus with the market regulator SEBI. A fresh issue aggregating Rs 75 Cr is expected. A secondary sale by Halcyon is also expected. Halcyon is exiting from the company. Tano Capital holds 17.13% stake in the company. IDFC has 3.29% stake in the company. Out of this money; 37.3 Cr will be used for the expansion of the network of its EBOs of Nike; Rs 20.7 Cr will be used for the investment in SSIPL Lifestyle to expand EBOs of Lotto and Beverly Hills Polo Club; 18.1 Cr will be used to buy the redeemable preference shares held by Halcyon.
Indian Retail Sector has a share of 30% of the national GDP. Many foreign players are trying to enter Indian retail sector by Tie ups and Joint Ventures. It will be beneficial for Indian consumers. The organized retail market in India has 2.1% share in the total GDP. Huge potential seen in the Indian organized retail sector. People’s attitude towards fashion and new life style is beneficial for organized retail sector. Footwear, Jewellary, Watches, Health and Beauty services have 60% share in the organized retail marketing.
Distributer and agency foot wear market is common in India. Footwear has become a fashion accessory than a utility. The footwear retail market has 0.9% share of India’s total retail market. It is also the 9.3% of organized retail market. It is expected that the Indian sportswear market will reach Rs 1200 Cr by 2020. The global brands like Nike, Reebok, Adidas and Puma have 84% market share in the Indian sportswear market.
Company designs and manufactures footwear brands like Nike, Reebok, Puma, Lotto, sketchers. Sierra is company’s own brand. Company has 238 exclusive outlets for brands like Nike, Lotto and Levi’s. Company brings typical shopping experience for its customers. Company reported revenue of Rs 3774.84 million in the FY 2011. It reported a net profit of 61.09 Million in the FY 2011. There are a few listed companies available in the Indian retail sector. The coming decade is a very good one for Indian retail companies. Company can earn smart profit in the coming years. Investors should study the company based on the issue price. Issue price has its own relevance in any IPO. The IPO price band will be available soon.