India's PE-backed SSIPL files for IPO

The company hopes to raise up to INR720 million ($11 million) through the issue of an undisclosed number of shares, according to a prospectus. SSIPL will also offer 1.6 million shares currently held by Tano, representing the GP's entire stake. Tano has been an investor in SSIPL since 2006.

The company has not yet announced the pricing for the offer. The bulk of the proceeds will be used for investment in subsidiary SSIPL Lifestyle, which manages a chain of exclusive brand outlets (EBO) and multiple brand outlets (MBO) for various international and domestic footwear brands. Capital will also be put towards opening 10 more EBOs for Nike and the modernization of the company's factories. 

SSIPL was founded in 1994 as Moja Shoes, and has grown from its manufacturing base to include retail stores. It makes and sells various kinds of footwear for foreign brands such as Nike, Puma, Clarks and Lotto. The company also works with domestic brands like Mmojah and Cobblerz.

The company has filed for IPO twice in the past. Its first such filing was in 2011, when it sought to raise INR750 million and give an exit to its other PE backer, Halcyon Resources and Management, which later exited to Oman India Joint Investment Fund (OIJIF). It subsequently withdrew the offer. SSIPL filed again earlier this year; it withdrew that offer at the same time that it filed the most recent prospectus.

OIJIF currently holds a 17.6% stake in SSIPL. Its holding will not be affected by the offer.

For the year ended March 31, 2015, SSIPL reported revenue of INR9 billion, up from INR7.6 billion the year before. Over the same period, net profit rose from INR272 million to INR303 million.

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• Topics
• South Asia
• Industrials
• Consumer
• Exits
• India
• Tano Capital
• manufacturing
• Consumer
• Exit
• IPO