Khadim India Plans Demerger, Boosts Stock by 4%

27 Sep 2023 , 03:09 PM

Khadim India stock surged by 4% on higher trading volumes following its announcement to consider creating a new wholly-owned subsidiary for its distribution business. The company’s board of directors will convene on September 29 to discuss and approve the scheme of arrangement with KSR Footwear Limited, outlining the potential demerger of the distribution business.

The demerger will involve the distribution business transitioning into KSR Footwear, a move consistent with Khadim India’s primarily retail and distribution business model. On August 10, Khadim India received ‘in-principle approval’ for the demerger, intending to execute it through a Scheme of Arrangement with a new wholly-owned subsidiary.

Established in 1981, Khadim India began as a wholesale and distribution center for branded utility footwear, evolving into the 2nd largest footwear retailer in India with a significant presence in 24 states and 3 union territories. Over the last 6 months, Khadim India shares have witnessed a substantial 42.4% surge.

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