Koutons Retail India has filed its DRHP with SEBI on 18.04.2007 for a public issue of 35.24 lakh equity shares of Rs.10 each of which fresh issue is for 26.08 lakh equity shares and 9.16 lakh equity shares as Offer for Sale by the promoters of the company. JM Morgan Stanley is the BRLM and shares of the company will be listing on BSE and NSE. The issue is likely to hit the capital market in the third week of August 07.
The present equity of the company is Rs.27.94 crores which would rise to Rs.30.55 crores in which, post-issue, promoters equity would reduce from 80.29% to 70.44%. The company is an integrated men's retail textile company marketing its products under Koutons brand targeted for age group of 22 to 45 years and under Charlie Outlaw brand targeted for age group of 14-25 years. The company directly does not own any of the retail outlets and operates through exclusive franchisee models where inventory risk is to the account of the company and not to the franchisees. The company also has strong I.T. network and support which is connecting all the retail outlets of the company. As at 28.02.2007 the company has 475 outlets of Koutons and 199 stores of Charlie Outlaw with total floor area of 5.06 lakh sq. ft. As on date the company is reported to have 850 retail stores with an area of close to 11 lakh sq. ft., on super built-up basis.
The company has management contract with 26 manufacturing facilities for annual finishing capacity of 2.29 crores pieces per annum and for manufacturing 1.24 crores pieces per annum. The turnover of the company for 10 months ending 31st January 2007 was at Rs.265 crores and PAT of Rs.23.96 crores. The turnover of FY07 is reported to be over Rs.400 crores with PAT of close to Rs.36 crores, resulting an estimated EPS of Rs.13.
The company has estimated total fund requirement of Rs.86.99 crores for setting up exclusive brand outlets (Rs.41.22 crores) setting up integrated manufacturing facility (Rs.30.19 crores) increasing existing capacity (Rs.10 Crores) and improving on its I.T. Networks with Rs.5.58 crores. Unit Trust of India. Investment Advisory services Limited A/c. Ascent India Fund is holding 25.58 lakh shares (9.15% of pre-issue), Argonaut Ventures are holding 17.25 lakh shares (6.17% of pre-issue) and Passport India Investments (Mauritius) holding 10.65 shares being 3.81%.
The promoters of the company are Kohlis and Sawhney and name of the company has been derived from first alphabets of both the promoters on first and last alphabets of the company. Incidentally, Kouton is Spanish name for cotton.