Shares of Khadim India touch roof on getting the fundraising nod through convertible warrants
The company would issue 4,08,768 fully convertible equity share warrants of Rs 10 each which will be converted into Equity Shares of Rs 10 each.
About the issuance of warrant
Khadim India’s Board of Directors has approved the raising of funds by way of a preferential issue of Fully Convertible Equity Share Warrants on a private placement basis to one of the Promoters and a few other identified Non-Promoter entities. The company would issue 4,08,768 fully convertible equity share warrants of Rs 10 each which will be converted into Equity Shares of Rs 10 each.
About expansion plan
The Warrants will be issued at a price of Rs 365 including a premium of Rs 355 per Equity share aggregating up to Rs 14.92 crore. The Warrants shall be converted into Equity Shares, not later than 18 months from the date of its allotment. The company shall utilise the fund largely towards the nationwide retail expansion and revamping of existing stores which would reinforce its market position. Khadim India operates as a footwear retailer in India under the brand Khadim’s.
Khadim India is currently trading at an upper limit of Rs 400.05, up by 19.05 points or 5% from its previous closing of Rs 381 on the BSE. The scrip opened at Rs 400.05 and touched a high and low of Rs 400.05 and Rs 389, respectively. So far 1100 shares have been traded on the counter.
The BSE group ‘B’ stock of face value of Rs 10 has touched a 52-week high of Rs 424.30 and a 52-week low of Rs 174.90. Last one week high and low of the scrip stood at Rs 400.05 and Rs 355.55 respectively. The current market cap of the company is Rs 718.87 crore. The promoters holding in the company stood at 60.27%, while Institutions and Non-Institutions held 5.67% and 34.06% respectively.
Khadim’s financial performance has been mixed in recent quarters, with net sales and total expenditure remaining relatively flat. Profitability has been declining, with PBIDT (Excl OI) decreasing by 3.42% and PAT increasing by 8.69%. Compared to the same quarter last year, net sales have decreased by 15.56%, total expenditure has decreased by 14.85%, PBIDT (Excl OI) has decreased by 20.78%, and PAT has decreased by 64.40%.
This decline in profitability is likely due to factors such as rising input costs, increased competition, and a slowdown in the economy. Investors should be aware of these risks before investing in Khadim. The company’s profitability has declined significantly in recent quarters, and it is unclear whether this trend will continue. Investors should carefully consider the company’s financial performance before making any investment decisions.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.