Khadim India shares rise 8% as footwear retailer considers hiving off distribution business

Shares of Khadim India Ltd surged 8% today after footwear retailer said it would consider hiving off its distribution business into a new wholly owned subsidiary. The stock zoomed 8.01% to an intraday high of Rs 287.75 on BSE. The footwear stock opened marginally lower at Rs 265.95 against the previous close of Rs 266.40 on BSE. Khadim India stock has lost 3.51% in a year and gained 13.48% in 2023. Total 0.15 lakh shares of the firm changed hands amounting to a turnover of Rs 42.45 crore. Market cap of Khadim India rose to Rs 488.7 lakh crore in the afternoon session. Later, the stock closed 2.08% higher at Rs 271.95. The stock has a beta of 0.5, indicating low volatility in a year.

In terms of technicals, the relative strength index (RSI) of Khadim India stands at 47.9, signaling it's neither trading in the overbought nor in the oversold territory. Khadim India shares are trading higher than the 5 day, 10 day, 50 day, 100 day, 150 day and 200 day moving averages but lower than the 20 day and 30 day moving averages.

The company’s board of directors will consider and approve the scheme of arrangement between the company and KSR Footwear Limited on September 29.

The company primarily operates through its retail and distribution business verticals, and under the new scheme of arrangement, will make the decision regarding the demerger of its distribution business into KSR footwear.

On August 10 this year, Khadim India announced that they had received "in-principle approval" to demerge their distribution business. This will be done through a Scheme of Arrangement with a new wholly-owned subsidiary of Khadim. According to the scheme, the entire shareholding of the resultant company will be held directly by the shareholders of Khadim, proportionate to their shareholding in Khadim.

Khadim India is a major footwear retailer in India. The company has a retail presence in 24 states and 3 union territories in India.

Also read: Stock recommendations by share market analysts for September 27, 2023: Granules India, Jubilant FoodWorks, JSW Energy & PNC Infratech

Also read: Top 6 stocks to watch on September 27, 2023: Muthoot Finance, Suzlon Energy, Vedanta, Talbros Automotive & others

Also read: Last day to subscribe to JSW Infrastructure IPO, PM Modi to launch projects worth Rs 5,200 crore in Top News on Sept 27: Share markets outlook, IRCTC’s offers on flight tickets, World Tourism Day