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S D Retail Ltd

S D Retail Ltd IPO

Status: Closed

Overview

IPO date
20 Sept 2024 to 24 Sept 2024
Face value
₹ 10 per share
Price
₹ 124 to ₹131 per share
Issue Size
4,960,000 shares
(aggregating up to ₹ 64.98 Cr)
Allotment Date
25 Sept 2024
Listing at
NSE
Issue type
Book Building - SME
Sector
Textiles

Objectives of S D Retail Ltd IPO

Initial public issue of upto 49,60,000 equity shares of Rs. 10/- each ("Equity Shares") of S D Retail Limited ("SDRL" or the "Company" or the "Issuer") for cash at a price of Rs. 131/- per equity share including a share premium of Rs. 121/- per equity share (the "Issue Price"), aggregating to Rs. 64.98 crores ("The Issue"), of which upto 2,50,000 equity shares of Rs. 10/- each for cash at a price of Rs. 131/- per equity share including a share premium of Rs. 121/- per equity share aggregating to Rs. 3.28 crores will be reserved for subscription by market maker to the issue (the "Market Maker Reservation Portion"). The issue less market maker reservation portion i.e. issue of upto 47,10,000 equity shares of Rs. 10/- each including a share premium of Rs. 121/- per equity share aggregating to Rs. 61.70 crores is hereinafter referred to as the "Net Issue". The issue and the net issue will constitute 26.49% and 25.16%, respectively of the post issue paid up equity share capital of the company.

S D Retail Ltd IPO Strategy

  • Strengthen leadership position in sleepwear market and focus on additional product launches for Store Sales Growth.
  • Continue to expand retail network with a focus on EBOs.
  • Focus on online channels and capitalize on the e-commerce trend.
  • Leverage Technology to Bring Cost Efficiency and Enhance Customer Experience.

About S D Retail Ltd

S D Retail Limited was originally incorporated as 'S D Retail Private Limited' dated May 14, 2004 issued by Registrar of Companies, Mumbai, Maharashtra. Further, the Company converted into Public Limited Company and name of Company was changed from 'S D Retail Private Limited' to 'S D Retail Limited' vide fresh Certificate of Incorporation dated June 19, 2024 issued by the Registrar of Companies, Central Processing Centre. The Company is in the business of designing, manufacturing, outsourcing, marketing, and retailing sleepwear under the brand name 'SWEET DREAMS'. The Company started Modern retail with MBO's (Multi Branch Outlets) i.e. Shopper Stop in year 2006. It started online selling of products in 2014 and has started the Exclusive Brand Outlets (EBO) in 2018. The Company is planning a Public Issue of 49,60,000 Fresh Issue Equity Shares.

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T&C*

Strengths vs Risks of S D Retail Ltd

Know the pros & cons

Strengths

  • arrowMulti-channel pan-India distribution network and newfound focus on EBOs.
  • arrowIn-house expertise in designing and developing products.
  • arrowStrong unit economics with scalable asset light model.
  • arrowScalable Business Model.
  • arrowOrganizational stability along with management expertise.
  • arrowExisting client relationship and customer satisfaction.
  • arrowUnique positioning in sleepwear market as gender-agnostic and catering to the entire family.

Risks

  • arrowThe application has been filed to NCLT under section 9 of Insolvency and Bankruptcy Code, 2016 against the Company and the same is pending with NCLT, Ahmedabad. Any adverse outcome of the pending proceeding will impact the operations of the Company.
  • arrowThe company products are sold under a single brand, "SWEET DREAMS'. Any inability to effectively market its products, or any deterioration in public perception of the company brand, could affect consumer footfall and consequently adversely impact its business, financial condition, cash flows and results of operations.
  • arrowIts business is primarily concentrated on the sale of women's sleepwear's and is vulnerable to variations in demand and changes in consumer preferences which could have an adverse effect on its business, results of operations and financial condition.
  • arrowThe company operates in highly competitive markets in each of its product segments in both offline and online channels and an inability to compete effectively may adversely affect its business, results of operations and financial condition. Further, pricing pressure from its competitors may affect the company ability to maintain or increase its product prices and, in turn, the company revenue from product sale, gross margin and profitability, which may materially and adversely affect its business, cash flows, results of operations and financial condition.
  • arrowIf the company is unable to predict customer demands and maintain optimum inventory level there may be an adverse effect on its results of operations, financial condition, and cash flows.
  • arrowCurrent locations of its exclusive brand outlets may become unattractive, and suitable new locations may not be available for a reasonable price, if at all. In addition, the company is exposed to all of the risks associated with leasing real estate and any adverse developments could materially affect its business, results of operations and financial condition.
  • arrowThere have been certain instances of regulatory non-compliances or delays or errors in the past. Its may be subject to regulatory actions and penalties for any such past or future non- compliance or delays or errors and its business, financial condition and reputation may be adversely affected.
  • arrowThe company Restated Financial Statements are prepared and signed by the Peer Review Auditor who is not Statutory Auditors of the Company as required under the provisions of ICDR.
  • arrowThe company inability to effectively manage or expand its retail network may have an adverse effect on the company's business, results of operations and financial condition.
  • arrowWhile the company design its products in-house, the company relies on outsourcing the manufacturing of finished products to third-party manufacturing partners, without exclusivity arrangements and are dependent on them for its finished goods. Any inability to obtain sufficient quantities of apparel of the requisite quality in a timely manner and at acceptable prices, or a slowdown, shutdown or disruption in such third- party manufacturing partners' operations and performance, could adversely affect its business, cash flows, results of operations and financial condition.
  • arrowAny change in its consumer's likes, preferences or a change in their perception regarding the quality of the company products may negatively affect the image and its reputation and in turn affect the company revenues and profitability.
  • arrowIf the company fails to retain its relationships with manufacturers, distributors and sellers, or attract new relationships, its business, financial condition, cash flows and operations will be adversely affected.
  • arrowIf the company fails to acquire new consumers or fail to do so in a cost-effective manner, its may not be able to increase revenue or maintain profitability.
  • arrowThe Application is filed against the Company for use of trademark in Intellectual Property Appellate Board, Chennai for removal of the Trade Mark. Any adverse outcome of the pending proceeding will impact the operations of the Company.
  • arrowCertain records of transfers involving the Promoters and records prior to 2006 are not traceable. The company cannot assure you that regulatory proceedings or actions will not be initiated against it in the future or that the company will be subject to any penalty imposed by the competent regulatory authority in this regard.
  • arrowFailures in complying with quality control processes may have an adverse impact on its business, results of operations and financial conditions.
  • arrowThe majority of its revenue from operations was derived from offline retail distribution channels. If the company fails to grow its revenues from online sales, the company will continue to remain dependent on offline sales channels and any attendant risks.
  • arrowIf the company fails to identify and effectively respond to changing consumer preferences and spending patterns or changing fashion trends in a timely manner, the demand for products could decrease, causing its revenue and results of operations to decline.
  • arrowThe company success is dependent on its Promoter, management team and skilled manpower. The company inability to attract and retain key personnel or the loss of services of its Promoter or Managing Director and Whole Time Director may have an adverse effect on its business prospects.
  • arrowThe company's business depends on continual purchases of its products and timely payments by its franchise stores, both in short and long term. Any delay or failure in sale of products or payments at its franchise stores or any disputes with franchisees may adversely impact the company business, cash flows and results of operations.
  • arrowThe loss, shutdown or slowdown of operations of its facility or the under-utilization of any such facility may have a material effect on the company results of operations and financial condition.
  • arrowThe company is exposed to the risks associated with leasing real estate in case the company is unable to comply with the terms and conditions of the lease agreements then its may shift the company EBOs to new locations, which may adversely affect its business, cash flows, results of operations and financial condition.
  • arrowThere are outstanding legal proceedings involving the Company, Directors and Promoters. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
  • arrowThe company sales relation to fashion are subject to seasonal variations that could result in fluctuations in its results of operations.
  • arrowThe company has entered into Distributor Agreements with the various parties for selling products. Any termination of such agreements may have adverse effect on its business, prospects, results of operations and financial condition.
  • arrowThe company requires certain approvals and licenses in the ordinary course of business and the failures to successfully obtain such registrations would adversely affect its operations, results of operations and financial condition.
  • arrowThe Company is well placed in North and West regions with respect to retail network through EBO's and also targeting South and East for further development. Non acceptance of its brand and failures to establish the company retail network in South and East region will impact its business operations of the Company.
  • arrowThe company has not identified any alternate source of raising the fund for expansion of EBOs and working capital mentioned as its `Objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
  • arrowThe company directors does enot have experience of a listed company and in the absence of such experience, it could adversely affect its corporate governance and business operations of the Company.
  • arrowThe company manufactures nightwear through contract or job work arrangements, with a significant portion of its job workers located in Gujarat, Maharashtra, and Punjab. Any disruptions in these regions would adversely affect its production and business operations.
  • arrowThe company relies on outsourcing of its production processes and activities to third- parties. Any inability to obtain sufficient quantities of processed material of the requisite quality in a timely manner and at acceptable prices, or a slowdown, shutdown or disruption in such third parties' operations and performance, could adversely affect its business, results of operations and financial condition.
  • arrowNegative review from customers may have an adverse impact on its brand reputation and the company ability to market its products. This may result in decline in decline in sales and profitability of the Company.
  • arrowThe properties used by the Company for the purpose of its operations are not owned by it. Any termination of the relevant lease agreements or rent agreements in connection with such properties or its failures to renew the same could adversely affect the company operations.
  • arrowIts top ten customers contribute majority of the company's revenues from operations. Any loss of business from one or more of them may adversely affect its revenues and profitability.
  • arrowIts top ten suppliers contribute majority of the company purchases. Any loss of business with one or more of them may adversely affect its business operations and profitability.
  • arrowThe company has a substantial amount of outstanding indebtedness, which requires significant cash flows to service and are subject to certain conditions and restrictions in terms of its financing arrangements, which restricts the company's ability to conduct its business and operations in the manner the company desire.
  • arrowThe company may not be able to prevent unauthorised use of trademarks obtained/ applied for by third parties, which may lead to the dilution of its goodwill.
  • arrowThe company's inability to effectively manage its growth or to successfully implement the company's business plan and growth strategy could have an effect on its business, results of operations and financial condition.
  • arrowThe company has an agreement which confers nomination rights to certain of its existing shareholders.
  • arrowThe COVID-19 pandemic has had an adverse effect, and any future pandemic may have adverse effects on its business, results of operations, financial condition and cash flows.
  • arrowThe unsecured loan availed by the Company from Director and Promoter group may be recalled at any given point of time.
  • arrowAny deficiency in its products could make the Company liable for client claims, which in turn could affect the Company's results of operations.
  • arrowThe company has significant power requirements for continuous running of its factory. Any disruption to the company operations on account of interruption in power supply or any irregular or significant hike in power tariffs may have an effect on its business, results of operations and financial condition.
  • arrowIf the company is unable to protect the data related to electronic mode of payments, or any other personal information that the company collect from customers, its brand reputation could be significantly harmed.
  • arrowThe company does not have any long-term agreement or contract of supply of raw materials and consequently are exposed to price and supply fluctuations for its raw materials.
  • arrowThe Company has not entered into any long-term contracts with any of its customers and the company typically operates on the basis of purchase orders. Inability to maintain regular order flow would adversely impact its revenues and profitability.
  • arrowThe company is dependent on third-party transportation providers for the supply of raw materials and delivery of its products.
  • arrowIf the company launch any new products which are not successful in the market as the company anticipate, its business, cash flows, results of operations and financial condition may be adversely affected.
  • arrowAny increase in or occurrence of its contingent liabilities and commitments may adversely affect the company financial condition.
  • arrowAny failures in its quality control processes may adversely affect the company business, results of operations and financial condition
  • arrowIts inability to manage inventory in an effective manner could affect the company's business.
  • arrowOrders placed by customers may be delayed, modified, cancelled or not fully paid for, which may have an adverse effect on its business, financial condition and thereby on the company's results of operations.
  • arrowAny failures to comply with financial and other restrictive covenants imposed on the company under its financing agreements may affect the company operational flexibility, business, results of operations and prospects.
  • arrowThe company is subject to the risk of failures of, or a material weakness in, its internal control systems and major fraud, lapses of internal control or system failures could adversely impact the company's business.
  • arrowThe company has entered into and may enter into related party transactions in the future also.
  • arrowThe company has significant ongoing funding requirements and may not be able to raise additional capital in the future. As a result, the company may not be able to respond to business opportunities, challenges or unforeseen circumstances.
  • arrowIf there is a change in policies related to tax, duties or other such levies applicable to the company, it may affect our results of operations.
  • arrowIts ability to pay dividends in the future may be affected by any material adverse effect on the company future earnings, financial condition or cash flows.
  • arrowThe company has experienced negative cash flows in the past. Any such negative cash flows in the future could affect its business, results of operations and prospects.
  • arrowThe company Promoter and Executive Directors hold Equity Shares in the Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.
  • arrowThe company insurance coverage may not be adequate to protect it against all potential losses to which the company may be subject and this may have a material effect on its business and financial condition.
  • arrowThe Company's management will have flexibility in utilizing the Net Proceeds from the Issue. The deployment of the Net Proceeds from the Issue is not subject to any monitoring by any independent agency.
  • arrowThe company's business is substantially affected by prevailing economic, political and other prevailing conditions in India.
  • arrowThe future operating results are difficult to predict and may fluctuate or adversely vary from the past performance.
  • arrowThe company has not independently verified certain data in this Red Herring Prospectus.
  • arrowThe company has not independently verified certain data in this Red Herring Prospectus.
  • arrowAny Penalty or demand raise by statutory authorities in future will affect its financial position of the Company.
  • arrowAny variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
  • arrowPortion of its Issue Proceeds are proposed to be utilized for general corporate purposes which constitute [*] of the Issue Proceed. As on date the company has not identified the use of such funds.
  • arrowThe company has in the last 12 months issued Equity Shares at a price that may be at lower than the Issue Price.
  • arrowThe average cost of acquisition of Equity Shares by its Promoter could be lower than the Issue Price.
  • arrowThe company will continue to be controlled by its Promoter and Promoter Group after the completion of the Issue, which will allow them to influence the outcome of matters submitted for approval of its shareholders.
  • arrowThe company Equity Shares have never been publicly traded and may experience price and volume fluctuations following the completion of the Issue, an active trading market for the Equity Shares may not develop, the price of its Equity Shares may be volatile and you may be unable to resell your Equity Shares at or above the Issue Price or at all.
  • arrowRights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
  • arrowThe Issue Price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
  • arrowA third party could be prevented from acquiring control of the Company because of anti-takeover provisions under Indian law.
  • arrowThe requirements of being a listed company may strain its resources and distract management.
  • arrowThe company may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy its capital needs, which the company may not be able to procure and any future equity offerings by the company.

S D Retail Ltd Peer Comparison

Understand the company’s industry standing

S D Retail Ltd
Go Fashion (India) Ltd
Bella Casa Fashion & Retail Ltd
Face Value
10
10
10
Standalone / Consolidated
Standalone
Standalone
Standalone
Total Income Rs. Cr.
162.5589
762.828
230.0988
EPS-Basis
5.52
15.32
8.89
EPS-Diluted
---
---
---
NAV Per Share
30.37
111.81
73.96
P/E-Basic EPS
---
78.67
33.77
P/E-Diluted EPS
---
---
---
RONW(%)
18.18
13.82
12.02
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 20 Sept 2024 & closes on 24 Sept 2024.

S D Retail Limited was originally incorporated as 'S D Retail Private Limited' dated May 14, 2004 issued by Registrar of Companies, Mumbai, Maharashtra. Further, the Company converted into Public Limited Company and name of Company was changed from 'S D Retail Private Limited' to 'S D Retail Limited' vide fresh Certificate of Incorporation dated June 19, 2024 issued by the Registrar of Companies, Central Processing Centre. The Company is in the business of designing, manufacturing, outsourcing, marketing, and retailing sleepwear under the brand name 'SWEET DREAMS'. The Company started Modern retail with MBO's (Multi Branch Outlets) i.e. Shopper Stop in year 2006. It started online selling of products in 2014 and has started the Exclusive Brand Outlets (EBO) in 2018. The Company is planning a Public Issue of 49,60,000 Fresh Issue Equity Shares.

S D Retail Ltd IPO will close on 24 Sept 2024.

  • Multi-channel pan-India distribution network and newfound focus on EBOs.
  • In-house expertise in designing and developing products.
  • Strong unit economics with scalable asset light model.
  • Scalable Business Model.
  • Organizational stability along with management expertise.
  • Existing client relationship and customer satisfaction.
  • Unique positioning in sleepwear market as gender-agnostic and catering to the entire family.

S.No Promoters Name Pre Issue Shares Pre Issue Percentage Post Issue Shares Post Issue Percentage
1 Sweet Dreams Loungewear (India 1430000 10.39 1430000 7.64
2 Grace Garments LLP 2127124 15.46 2127124 11.36
3 Hitesh Pravinchandra Ruparelia 4751120 34.52 4751120 25.38
4 Utpalbhai Pravinchandra Rupare 3167560 23.02 3167560 16.92

  • The application has been filed to NCLT under section 9 of Insolvency and Bankruptcy Code, 2016 against the Company and the same is pending with NCLT, Ahmedabad. Any adverse outcome of the pending proceeding will impact the operations of the Company.
  • The company products are sold under a single brand, "SWEET DREAMS'. Any inability to effectively market its products, or any deterioration in public perception of the company brand, could affect consumer footfall and consequently adversely impact its business, financial condition, cash flows and results of operations.
  • Its business is primarily concentrated on the sale of women's sleepwear's and is vulnerable to variations in demand and changes in consumer preferences which could have an adverse effect on its business, results of operations and financial condition.
  • The company operates in highly competitive markets in each of its product segments in both offline and online channels and an inability to compete effectively may adversely affect its business, results of operations and financial condition. Further, pricing pressure from its competitors may affect the company ability to maintain or increase its product prices and, in turn, the company revenue from product sale, gross margin and profitability, which may materially and adversely affect its business, cash flows, results of operations and financial condition.
  • If the company is unable to predict customer demands and maintain optimum inventory level there may be an adverse effect on its results of operations, financial condition, and cash flows.
  • Current locations of its exclusive brand outlets may become unattractive, and suitable new locations may not be available for a reasonable price, if at all. In addition, the company is exposed to all of the risks associated with leasing real estate and any adverse developments could materially affect its business, results of operations and financial condition.
  • There have been certain instances of regulatory non-compliances or delays or errors in the past. Its may be subject to regulatory actions and penalties for any such past or future non- compliance or delays or errors and its business, financial condition and reputation may be adversely affected.
  • The company Restated Financial Statements are prepared and signed by the Peer Review Auditor who is not Statutory Auditors of the Company as required under the provisions of ICDR.
  • The company inability to effectively manage or expand its retail network may have an adverse effect on the company's business, results of operations and financial condition.
  • While the company design its products in-house, the company relies on outsourcing the manufacturing of finished products to third-party manufacturing partners, without exclusivity arrangements and are dependent on them for its finished goods. Any inability to obtain sufficient quantities of apparel of the requisite quality in a timely manner and at acceptable prices, or a slowdown, shutdown or disruption in such third- party manufacturing partners' operations and performance, could adversely affect its business, cash flows, results of operations and financial condition.
  • Any change in its consumer's likes, preferences or a change in their perception regarding the quality of the company products may negatively affect the image and its reputation and in turn affect the company revenues and profitability.
  • If the company fails to retain its relationships with manufacturers, distributors and sellers, or attract new relationships, its business, financial condition, cash flows and operations will be adversely affected.
  • If the company fails to acquire new consumers or fail to do so in a cost-effective manner, its may not be able to increase revenue or maintain profitability.
  • The Application is filed against the Company for use of trademark in Intellectual Property Appellate Board, Chennai for removal of the Trade Mark. Any adverse outcome of the pending proceeding will impact the operations of the Company.
  • Certain records of transfers involving the Promoters and records prior to 2006 are not traceable. The company cannot assure you that regulatory proceedings or actions will not be initiated against it in the future or that the company will be subject to any penalty imposed by the competent regulatory authority in this regard.
  • Failures in complying with quality control processes may have an adverse impact on its business, results of operations and financial conditions.
  • The majority of its revenue from operations was derived from offline retail distribution channels. If the company fails to grow its revenues from online sales, the company will continue to remain dependent on offline sales channels and any attendant risks.
  • If the company fails to identify and effectively respond to changing consumer preferences and spending patterns or changing fashion trends in a timely manner, the demand for products could decrease, causing its revenue and results of operations to decline.
  • The company success is dependent on its Promoter, management team and skilled manpower. The company inability to attract and retain key personnel or the loss of services of its Promoter or Managing Director and Whole Time Director may have an adverse effect on its business prospects.
  • The company's business depends on continual purchases of its products and timely payments by its franchise stores, both in short and long term. Any delay or failure in sale of products or payments at its franchise stores or any disputes with franchisees may adversely impact the company business, cash flows and results of operations.
  • The loss, shutdown or slowdown of operations of its facility or the under-utilization of any such facility may have a material effect on the company results of operations and financial condition.
  • The company is exposed to the risks associated with leasing real estate in case the company is unable to comply with the terms and conditions of the lease agreements then its may shift the company EBOs to new locations, which may adversely affect its business, cash flows, results of operations and financial condition.
  • There are outstanding legal proceedings involving the Company, Directors and Promoters. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
  • The company sales relation to fashion are subject to seasonal variations that could result in fluctuations in its results of operations.
  • The company has entered into Distributor Agreements with the various parties for selling products. Any termination of such agreements may have adverse effect on its business, prospects, results of operations and financial condition.
  • The company requires certain approvals and licenses in the ordinary course of business and the failures to successfully obtain such registrations would adversely affect its operations, results of operations and financial condition.
  • The Company is well placed in North and West regions with respect to retail network through EBO's and also targeting South and East for further development. Non acceptance of its brand and failures to establish the company retail network in South and East region will impact its business operations of the Company.
  • The company has not identified any alternate source of raising the fund for expansion of EBOs and working capital mentioned as its `Objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
  • The company directors does enot have experience of a listed company and in the absence of such experience, it could adversely affect its corporate governance and business operations of the Company.
  • The company manufactures nightwear through contract or job work arrangements, with a significant portion of its job workers located in Gujarat, Maharashtra, and Punjab. Any disruptions in these regions would adversely affect its production and business operations.
  • The company relies on outsourcing of its production processes and activities to third- parties. Any inability to obtain sufficient quantities of processed material of the requisite quality in a timely manner and at acceptable prices, or a slowdown, shutdown or disruption in such third parties' operations and performance, could adversely affect its business, results of operations and financial condition.
  • Negative review from customers may have an adverse impact on its brand reputation and the company ability to market its products. This may result in decline in decline in sales and profitability of the Company.
  • The properties used by the Company for the purpose of its operations are not owned by it. Any termination of the relevant lease agreements or rent agreements in connection with such properties or its failures to renew the same could adversely affect the company operations.
  • Its top ten customers contribute majority of the company's revenues from operations. Any loss of business from one or more of them may adversely affect its revenues and profitability.
  • Its top ten suppliers contribute majority of the company purchases. Any loss of business with one or more of them may adversely affect its business operations and profitability.
  • The company has a substantial amount of outstanding indebtedness, which requires significant cash flows to service and are subject to certain conditions and restrictions in terms of its financing arrangements, which restricts the company's ability to conduct its business and operations in the manner the company desire.
  • The company may not be able to prevent unauthorised use of trademarks obtained/ applied for by third parties, which may lead to the dilution of its goodwill.
  • The company's inability to effectively manage its growth or to successfully implement the company's business plan and growth strategy could have an effect on its business, results of operations and financial condition.
  • The company has an agreement which confers nomination rights to certain of its existing shareholders.
  • The COVID-19 pandemic has had an adverse effect, and any future pandemic may have adverse effects on its business, results of operations, financial condition and cash flows.
  • The unsecured loan availed by the Company from Director and Promoter group may be recalled at any given point of time.
  • Any deficiency in its products could make the Company liable for client claims, which in turn could affect the Company's results of operations.
  • The company has significant power requirements for continuous running of its factory. Any disruption to the company operations on account of interruption in power supply or any irregular or significant hike in power tariffs may have an effect on its business, results of operations and financial condition.
  • If the company is unable to protect the data related to electronic mode of payments, or any other personal information that the company collect from customers, its brand reputation could be significantly harmed.
  • The company does not have any long-term agreement or contract of supply of raw materials and consequently are exposed to price and supply fluctuations for its raw materials.
  • The Company has not entered into any long-term contracts with any of its customers and the company typically operates on the basis of purchase orders. Inability to maintain regular order flow would adversely impact its revenues and profitability.
  • The company is dependent on third-party transportation providers for the supply of raw materials and delivery of its products.
  • If the company launch any new products which are not successful in the market as the company anticipate, its business, cash flows, results of operations and financial condition may be adversely affected.
  • Any increase in or occurrence of its contingent liabilities and commitments may adversely affect the company financial condition.
  • Any failures in its quality control processes may adversely affect the company business, results of operations and financial condition
  • Its inability to manage inventory in an effective manner could affect the company's business.
  • Orders placed by customers may be delayed, modified, cancelled or not fully paid for, which may have an adverse effect on its business, financial condition and thereby on the company's results of operations.
  • Any failures to comply with financial and other restrictive covenants imposed on the company under its financing agreements may affect the company operational flexibility, business, results of operations and prospects.
  • The company is subject to the risk of failures of, or a material weakness in, its internal control systems and major fraud, lapses of internal control or system failures could adversely impact the company's business.
  • The company has entered into and may enter into related party transactions in the future also.
  • The company has significant ongoing funding requirements and may not be able to raise additional capital in the future. As a result, the company may not be able to respond to business opportunities, challenges or unforeseen circumstances.
  • If there is a change in policies related to tax, duties or other such levies applicable to the company, it may affect our results of operations.
  • Its ability to pay dividends in the future may be affected by any material adverse effect on the company future earnings, financial condition or cash flows.
  • The company has experienced negative cash flows in the past. Any such negative cash flows in the future could affect its business, results of operations and prospects.
  • The company Promoter and Executive Directors hold Equity Shares in the Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.
  • The company insurance coverage may not be adequate to protect it against all potential losses to which the company may be subject and this may have a material effect on its business and financial condition.
  • The Company's management will have flexibility in utilizing the Net Proceeds from the Issue. The deployment of the Net Proceeds from the Issue is not subject to any monitoring by any independent agency.
  • The company's business is substantially affected by prevailing economic, political and other prevailing conditions in India.
  • The future operating results are difficult to predict and may fluctuate or adversely vary from the past performance.
  • The company has not independently verified certain data in this Red Herring Prospectus.
  • The company has not independently verified certain data in this Red Herring Prospectus.
  • Any Penalty or demand raise by statutory authorities in future will affect its financial position of the Company.
  • Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
  • Portion of its Issue Proceeds are proposed to be utilized for general corporate purposes which constitute [*] of the Issue Proceed. As on date the company has not identified the use of such funds.
  • The company has in the last 12 months issued Equity Shares at a price that may be at lower than the Issue Price.
  • The average cost of acquisition of Equity Shares by its Promoter could be lower than the Issue Price.
  • The company will continue to be controlled by its Promoter and Promoter Group after the completion of the Issue, which will allow them to influence the outcome of matters submitted for approval of its shareholders.
  • The company Equity Shares have never been publicly traded and may experience price and volume fluctuations following the completion of the Issue, an active trading market for the Equity Shares may not develop, the price of its Equity Shares may be volatile and you may be unable to resell your Equity Shares at or above the Issue Price or at all.
  • Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
  • The Issue Price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
  • A third party could be prevented from acquiring control of the Company because of anti-takeover provisions under Indian law.
  • The requirements of being a listed company may strain its resources and distract management.
  • The company may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy its capital needs, which the company may not be able to procure and any future equity offerings by the company.

The Issue type of S D Retail Ltd is Book Building - SME.

The minimum application for shares of S D Retail Ltd is 1000.

The total shares issue of S D Retail Ltd is 4960000.

Initial public issue of upto 49,60,000 equity shares of Rs. 10/- each ("Equity Shares") of S D Retail Limited ("SDRL" or the "Company" or the "Issuer") for cash at a price of Rs. 131/- per equity share including a share premium of Rs. 121/- per equity share (the "Issue Price"), aggregating to Rs. 64.98 crores ("The Issue"), of which upto 2,50,000 equity shares of Rs. 10/- each for cash at a price of Rs. 131/- per equity share including a share premium of Rs. 121/- per equity share aggregating to Rs. 3.28 crores will be reserved for subscription by market maker to the issue (the "Market Maker Reservation Portion"). The issue less market maker reservation portion i.e. issue of upto 47,10,000 equity shares of Rs. 10/- each including a share premium of Rs. 121/- per equity share aggregating to Rs. 61.70 crores is hereinafter referred to as the "Net Issue". The issue and the net issue will constitute 26.49% and 25.16%, respectively of the post issue paid up equity share capital of the company.