CKK Retail Mart IPO

C K K Retail Mart Limited is engaged in the trading and retailing of consumer products. The company sources products from manufacturers and wholesalers and distributes them through its retail and trading channels.

Core Business Activities:

• Procurement of consumer goods

• Inventory management

• Distribution and retail sales

• Vendor relationship management

• Logistics coordination

Key Strengths:

• Long operating history

• Established supplier base

• Promoter experience

• Cost-focused business model

• Presence in organized retail transition

Narrative:
The company’s performance is sensitive to fluctuations in consumer demand and supply chain stability. Any disruption in procurement, pricing pressure from competitors, or regulatory changes could impact margins and profitability.

Promoters:

• Mr. Saurabh Malhotra

• Sakuma Infrastructure and Realty Private Limited

• Ms. Kusum Chander Mohan Malhotra

• Ms. Vanitha Malhotra

They collectively control the company and bring experience in business operations and infrastructure-related ventures.

Promoter group entities mainly operate in allied businesses and do not pose material conflict.

Management combines operational execution with financial and regulatory oversight.

No litigation threatens business continuity.

📈 Revenue Trend:

FY23 ████
FY24 ██████
FY25 █████████

Operational cash flows improved due to better margins and scale.

IPO proceeds will be used for:

1. Working capital

2. Store expansion

3. Inventory purchase

4. General corporate purposes

Allocation:

• QIB – up to 50%

• Retail – minimum 35%

• NII – minimum 15%

Valuation is based on:

• Earnings growth

• Retail peer comparison

• Industry multiples

• Growth potential

The offer is priced in line with SME retail companies.

Includes:

• Director remuneration

• Transactions with promoter group entities

• Service and lease agreements

All are disclosed and at arm’s length.

• Offer Agreement

• Underwriting Agreement

• Registrar Agreement

• Market Making Agreement

• Escrow Agreement

• Monitoring Agency Agreement

• Independent directors appointed

• Audit Committee

• NRC Committee

• Stakeholder Committee

• SEBI LODR compliance

• Internal controls and audits

Management attributes growth to:

• Rising consumer demand

• Better supply chain management

• Improved procurement

• Controlled operating expenses

Future Strategy:

• Expand footprint

• Strengthen vendor base

• Improve margins

• Leverage organized retail growth

Outlook:
The company expects steady growth aligned with India’s consumption-driven economy and retail expansion.

Below are the major risk factors written in original, non-robotic language:

1. Business & Market Risks

• The company’s performance depends heavily on consumer spending behavior. Any slowdown in economic activity or reduction in household consumption can directly impact sales volumes and revenue growth.

• The retail industry is highly competitive, with pressure from large organized retail chains, e-commerce platforms, and unorganized local retailers. This can affect pricing power and profit margins.

2. Operational Risks

• The business requires maintaining large inventory levels. Poor demand forecasting or supply chain disruptions may lead to excess stock, product obsolescence, or working capital strain.

• Dependence on a limited number of suppliers increases vulnerability to price fluctuations, delivery delays, or changes in supplier terms.

3. Financial Risks

• The company has significant working capital requirements. Any delay in collections or unexpected increase in inventory costs could impact cash flows.

• Fluctuations in procurement costs, transportation expenses, and warehousing costs may affect profitability.

4. Regulatory & Compliance Risks

• The company is subject to various laws such as GST, consumer protection laws, labor regulations, and retail trade regulations. Non-compliance could result in penalties or business disruption.

• Changes in government policies related to retail trade, taxation, or import/export norms may impact operations.

5. Promoter & Management Risks

• The company relies heavily on its promoters and key managerial personnel for strategy and day-to-day operations. Loss of their services could affect business continuity.

• High promoter shareholding limits the influence of minority shareholders in corporate decisions.

6. IPO & Market Risks

• This is the company’s first public issue, and there is no existing trading market for its shares. The issue price may not reflect future market performance after listing.

• There is no guarantee of liquidity or sustained trading volume after listing.

7. Industry-Specific Risks

• The retail and trading industry is sensitive to changes in consumer preferences and pricing trends.

• Rapid growth of e-commerce and discount retail formats may reduce footfall in traditional trading channels.