Brandman Retail IPO: Fresh Issue of 47.78 Lakh Shares To Fund 15 New Stores And Working Capital Expansion

New Delhi, September 8 (IST) —  Brandman Retail Limited has made an important step to expand its retail presence by filing a Draft Red Herring Prospectus (DRHP) with an initial public offering (IPO) on the NSE SME platform. The company is planning on a 100% fresh issue of up to 47,77,600 equity shares with a face value of ₹10. The company has yet to specify the price band for the IPO or the opening date for the IPO. Still, the IPO is expected to be used to fund the opening of new stores, working capital and growth of the corporate activities.

Established in 2021, Brandman is a retailer of footwear and athleisure products in the licensed global brands arena. The Company has demonstrated significant revenue growth. However, Brandman is subject to certain risks, specifically, reliance on New Balance brand revenue and the Delhi NCR region. Brandman’s dependence on a single source of revenue and a regional market poses significant risks to its future sustainability. Therefore, Brandman’s future diversification plans are imperative.

Financial Performance Highlights

Brandman Retail has a high financial performance in FY25, which is a pointer to the strength of operations within the company. These figures represent the total revenue of ₹13,529.49 lakh from the company’s operations, with a profit after tax of ₹2,095.42 lakh and an EBITDA of ₹3,114.69 lakh. After subtracting costs, the margin stands at 23.02%. The net worth of the company is ₹2,979.47 lakh, and the debt within the company is manageable at ₹1,186.58 lakh. The after-bonus earnings per share are ₹16.43, and the ratio of the net worth to its profit is 70.33.

A notable aspect of the company’s revenue profile is its high dependence on New Balance, which accounts for nearly 72% of total revenue, thereby increasing the company’s concentration risk.

IPO Issue Details

The IPO of Brandman Retail is organised as a new issue of 477,760 equity shares of 10-faced shares. The shares will be traded at the NSE SME platform, with Gretex Corporate Services acting as the lead manager and Bigshare Services as the registrar. Although the name of the market maker will not be disclosed, the issue is formulated to raise money that will be used to propel the company to the next stage of expansion and also consolidate its operational ground.

Utilisation Of Proceeds

The money obtained during the IPO will be spent mainly on increasing the retail presence of the company by establishing 15 new Exclusive Brand Outlets and Multi-Brand Outlets. Moreover, a substantial amount will be used to fulfill the working capital requirements of new and existing stores to facilitate the day-to-day operation. The firm also intends to use the proceeds to renovate and refurbish leased outlets, and the remainder would be used for general corporate purposes and in relation to IPO costs.

Shareholding And Promoter Information

Before the IPO, Brandman Retail had a total of 1,34,22,000 equity shares. The promoter holding of Brandman Retail is Arun Malhotra, 17.99%, Kavya Malhotra, 73.88%, Kashika Malhotra, 0.01% and the promoter group HUF at 8.00%. After the IPO, the promoter holding will be diluted proportionately; the exact numbers will be updated in the final prospectus at allotment.

Strategic Prospects And Growth Plans

The proceeds of the IPO will enhance the brand’s market presence, augment its operational leverage, and increase the productivity of its stores. The diversification of revenue streams by the management team will involve leveraging other brands and regions through financing new outlets, remodeling existing ones, and securing working capital. Such enhancement of the business model will not only help Brandman Retail to take advantage of the growing consumer demand for footwear and athleisure but also minimise the concentration risk in the long term.

REF: https://nsearchives.nseindia.com/emerge/corporates/content/aartic_08092025122017_Brandman_DRHP.pdf

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