Brandman Retail IPO

Brandman Retail Limited faces a mix of business, financial, and operational risks:

Key Risks:

• The company has reported negative operating cash flows in recent periods, which may continue in the future.

• Dependence on licensed international brands exposes it to risks of contract termination or non-renewal.

• It has availed unsecured loans repayable on demand, which may strain liquidity if recalled.

• Highly competitive footwear and athleisure retail market with strong players like Bata, Redtape, and Liberty Shoes.

• Vulnerability to fashion trends, consumer demand volatility, and inventory obsolescence.

• Risks related to trademark protection and intellectual property disputes.

These risks can directly affect profitability and investor returns.

Brandman operates in the Indian footwear and athleisure retail industry.

Industry Snapshot:

• Indian footwear market size (2023): USD 25 billion

• Expected to reach USD 34 billion by 2028

• CAGR: 5–6%

• Retail sector contributes over 10% of India’s GDP and nearly 8% of employment

Growth Drivers:

• Rising disposable income

• Urbanization

• Premiumisation of brands

• Athleisure and sneaker culture

• Growth of omnichannel retail (offline + online)

Future Outlook:

• Strong demand for branded footwear

• Sustainability and experiential retail gaining traction

• Technology adoption (AI, AR, personalization)

The company complies with multiple laws including:

• Companies Act, 2013

• SEBI ICDR Regulations

• GST laws

• Trademarks Act

• Labour laws

• Prevention of Corruption Act

• Electricity Act

• Negotiable Instruments Act

• Bharatiya Nyaya Sanhita, 2023

• Consumer protection and retail trade regulations

• 2021: Incorporated as Brandman Retail Private Limited

• 2022: Launched 7 EBOs

• 2023: Expanded to 15+ stores, turnover reached ₹130 crore

• 2024: Converted into a Public Limited Company

• 2024–25: Launched D2C website

• 2025: Awarded ET NOW Excellence in Sports Retail

Promoters:

• Mr. Arun Malhotra

• Ms. Kavya Malhotra

• Ms. Kashika Malhotra

They bring over 22 years of experience in luxury branding and retail solutions.

Subsidiary:

• Incubator Ecom Private Limited – 95% holding

Focuses on e-commerce and digital retail operations.

Board of Directors:

• Arun Malhotra – Chairman & MD

• Kavya Malhotra – Whole Time Director

• Kashika Malhotra – Non-Executive Director

• 3 Independent Directors (India, Switzerland, Canada)

Key Executives:

• CFO: Mr. Saket Prakash

• Company Secretary: Ms. Sanchita Rameka

Committees include:

• Audit Committee

• Nomination & Remuneration Committee

• Stakeholders Relationship Committee

• Risk Management Committee

Governance aligned with Companies Act and SEBI LODR norms.

• No major defaults or loan restructuring

• No mergers, amalgamations, or disinvestments

• Routine litigations disclosed in RHP

• Trademark objections pending for some applications

Key approvals include:

• GST registration

• Trademark registrations (under process)

• Shop & establishment licenses

• Import/export codes

• SEBI and NSE approvals for IPO

Revenue (₹ Lakhs):

• FY23: 12,333

• FY24: 13,529

• 9M FY25: 9,531

Revenue Mix FY25:

• Export B2B: 48.84%

• B2C Retail: 37.6%

• E-commerce: 10.68%

• Domestic B2B: 2.88%

• Unsecured loans repayable on demand

• No defaults with banks

• No conversion of loans into equity

• Negative operating cash flows reported

• High working capital needs due to inventory and store expansion

• IPO funds expected to stabilize liquidity

• Return on Net Worth (RONW): 70.33%

• EPS: ₹16.43

• NAV: ₹23.37

• Peer comparison with Bata, Redtape, Liberty Shoes

Management focuses on:

• Omnichannel expansion

• Cost efficiency

• Reducing marketing expenses

• Strengthening export B2B

• Launching new international brands

IPO proceeds will be used for:

• Working capital requirements

• General corporate purposes

• Brand expansion

• Store rollout

• Technology and digital platforms

Issue price based on:

• EPS

• RONW

• Peer comparison

• Growth prospects

• Net worth

Face value: ₹10
Price band: ₹167 – ₹176

• Fresh issue: 48,91,200 shares

• No Offer for Sale

• Post-issue capital increases proportionately

• QIB: up to 50%

• NII: 15%

• Retail: 35%

• Market Maker: 2,44,800 shares

• Voting rights

• Dividend entitlement

• Participation in AGM

• Transferability of shares

Includes:

• Material contracts

• Litigation disclosures

• Tax benefits

• Regulatory compliance

• Intellectual property status

• Risk disclosures