Khadim India board to consider demerger of distribution biz into KSR Footwear; stock up 4%
Khadim India will meet on September 29 to consider and approve a proposal for the demerger of its distribution business into KSR Footwear.
«The Board meeting will be held on Friday, September 29, 2023, inter alia, to consider and approve the Scheme of Arrangement between Khadim India Ltd (Demerged Company) and KSR Footwear (Resulting Company) and their respective shareholders and creditors under Section 230 to 232 read with other applicable provisions of the Companies Act, 2013, w.r.t. the demerger of the Distribution Business of the demerged company into the resulting company, as a going concern,» the company said in a filing.
Following the announcement, the company's shares jumped nearly 4% in intraday trade and were last trading at Rs 276.50.
Khadim India is one of India's leading branded footwear retail players in terms of exclusive stores operating under the Khadim's brand.
It has the largest presence in East India and is among the top three players in South India.
On a year-to-date basis, the stock has delivered 15% returns to investors.
Axis Securities has a buy call on the stock with an upside of Rs 291-310 levels and the holding period is three to four weeks.
Last week, Khadim successfully broke through the significant 'Cup and Handle' pattern, surpassing the breakout level of Rs 250.
«This indicates a positive bias going forward. During the pattern formation, the volume dried up, but at the breakout, there was a noticeable influx on 18th Aug, 2023,» the brokerage said.
«The stock has solidified a medium-term support at the 215 level, experiencing a rebound that coincides with a 50% Fibonacci retracement of the rally spanning from 177 to 252.
