SSIPL gets Sebi nod for IPO launch

Footwear company SSIPL Retail has got a go ahead from the capital markets regulator Sebi to launch an initial public offering (IPO). The company had filed its draft red herring prospectus (DRHP) with Sebi through its lead merchant banker Axis Capital March this year. Sebi issued its final observations on the draft offer documents on May 25. The company has filed initial papers with Sebi in 2011 to float an IPO, which could not get the green signal then.

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 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, Levi’s, 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 modernization of the existing manufacturing facilities, among others. The issue is being managed by Axis Capital, IDFC Securities and Ambit Corporate Finance.