Brandman Retail coming with IPO to raise Rs 86 crore

Brandman Retail

• Brandman Retail is coming out with an initial public offering (IPO) of 48,91,200 shares in a price band of Rs 167-176 per equity share. 
• The issue will open on February 04, 2026 and will close on February 6, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 16.70 times of its face value on the lower side and 17.60 times on the higher side.
• Book running lead manager to the issue is Gretex Corporate Services.
• Compliance Officer for the issue is Sanchita Rameka.

Profile of the company

The company is engaged in the distribution and retail of premium international brands through non-exclusive distribution agreements. Its sales are carried out through multiple channels, including Exclusive Brand Outlets (EBOs) operated under specific brand arrangements, Multi-Brand Outlets (MBOs) under its trademark ‘Sneakrz,’ e-commerce marketplaces and its own website. In addition to the offline stores, the company has entered into agreements with retailers of shoes under which, the company supplies its products to stores and the same are thereafter sold to end-customers through online and offline modes. This multi-channel presence allows it to cater to customers across physical retail formats as well as online platforms.

Its Promoters, Arun Malhotra and Kavya Malhotra, each with over 22 years of experience in the luxury goods branding solutions business, established the company in 2021. In 2024, Kashika Malhotra joined as a Promoter, following her prior exposure to internships and training programs in the retail and consulting sectors. The Promoters, together with a professional team, manage the company’s operations in the distribution and retail of international brands through licensing, re-seller arrangements, and reseller distribution networks. The company distributes and retails branded products and adjusts its product offerings in accordance with observed consumer demand.

Proceed is being used for:

• Funding Capital Expenditure for expansion of its Retail Network by launching 15 new Exclusive Brand Outlets (EBOs) / Multi-Brand Outlets (MBOs) 
• Working capital requirements for new EBOs and MBOs 
• Working capital requirements for existing EBOs and MBOs 
• General corporate purposes
• Meeting the Issue expenses 

Industry overview

The Indian apparel market is one of the largest discretionary categories, valued at around $77 billion in 2023 and projected to reach approximately $120 billion by 2027, representing a compound annual growth rate (CAGR) of 9-10%. This makes India one of the fastest-growing apparel markets globally, driven by favourable demographics, rising urbanisation, premiumisation, and greater adoption of branded products. Globally, the apparel market is estimated at around $1.7 trillion in 2023, with major contributions from China, the United States, and the European Union. India, while smaller in absolute size compared to these markets, is projected to record higher growth rates than most mature economies. This positions India as a key growth driver in global apparel consumption over the coming decade.

The Indian footwear market is among the most important discretionary retail categories, valued at around $25 billion in 2023. It is projected to grow at a CAGR of 5-6% to reach $34 billion by 2028, supported by premiumisation, lifestyle shifts, and greater penetration of branded products. Globally, the footwear market is estimated at $400 billion in 2023.  India’s contribution, though relatively modest in global terms, is set to rise as domestic demand increases and export capacity strengthens. India is also the second largest footwear producer worldwide, accounting for over 10% of global output, supported by established clusters in Agra, Kanpur, Ambur, Ranipet, and other regions.

India’s apparel and footwear retail industry is at an inflection point. While risks remain in terms of discounting pressures, regulatory compliance, and competitive intensity, the sector’s long-term fundamentals are robust. The combination of favourable demographics, rising aspirations, digital adoption, and structural formalisation provides a strong foundation for sustained growth. Companies with disciplined supply chains, differentiated brand portfolios, and strong omnichannel execution are well placed to capture the opportunities ahead.

Pros and strengths

Omni-Channel distribution network: The company operates through multiple channels, including EBOs, MBOs, e-commerce marketplaces, and its own online store. This integrated presence across offline and online platforms allows the company to reach customers through different points of sale and adapt to varying consumer preferences.

Asset-Light and scalable business model: The company follows an asset-light trading model, which reduces fixed capital requirements. Inventory is primarily managed through a central warehouse and store-level stock, with sales facilitated through both offline and online channels. This structure allows the company to expand its operations without significant investment in manufacturing infrastructure.

Brand associations and market opportunity: The company has associations with certain international brands, which enables it to offer products in the athleisure and footwear segment. Demand for premium activewear and performance products in India has been increasing, and the company intends to expand in line with this market trend.

Risks and concerns

High revenue concentration in footwear segment: Its business comprises sale of footwear, apparel and accessories. A significant portion of its revenue is derived from the sale of footwear products. In the for the nine months period ended on December 31, 2025 and Financial Year 2024- 25, 203-24 and 2022-23, revenue from footwear products contributed around 72%, 85%, 96% and 89%, respectively, of its total revenue from operations. This concentration exposes it to risks associated with demand, consumer preferences and competitive dynamics specific to the footwear segment. Its revenue is highly dependent on sale of footwear products, and any adverse developments in this product category may materially affect its business, financial condition and results of operations.

Dependence on top ten customers for revenues: It is dependent on such customers for a certain portion of its revenues. There can be no assurance that all such top customers will continue to place similar orders with it in the future. The revenue of its top ten customers for the nine months ended December 31, 2025 stood at Rs 5,288.95 lakh (55.49%). For FY2024-25, and FY2023-24 revenue from the top ten customers amounted to Rs 9,377.56 lakh (69.31%), and Rs 7,210.67 lakh (58.47%), respectively. Any significant portion of its revenue is generated from its top ten customers, and the loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its products could adversely affect its business, revenues, profitability, financial condition and cash flows.

Dependence on contractual arrangements with customers: Its business operations are significantly dependent on contractual arrangements entered into with its customers, including large e-commerce platforms and retailers. These agreements typically impose obligations on it relating to timely supply, adherence to quality specifications, compliance with applicable laws, and other performance-related conditions. Non-fulfilment of these obligations may expose it to penalties, claims, or termination of such contracts. For instance, one of such agreements includes a penalty structure for cancellation of orders, whereas another such agreement provides for penalties in the event of delayed delivery. These provisions expose it to the risk of financial liabilities in the event of non-performance or delays, irrespective of whether such lapses arise due to factors within or beyond its control, such as supply chain disruptions, delays by third-party logistics providers, or unforeseen operational challenges.

Outlook

Brandman Retail is engaged in the trade of Footwear, Apparels and accessories. Its sales are carried out through multiple channels, including Exclusive Brand Outlets (EBOs) operated under specific brand arrangements, Multi-Brand Outlets (MBOs) under its trademark ‘Sneakrz,’ e-commerce marketplaces and its own website. The company object is to expand the business of multiple international brand of mainly Footwear & Apparels through verticals retail and distribution business. On the concern side, it relies on third-party suppliers for purchase of finished products for its retail sales and distribution business. It has not entered into any long-term supply agreements with them, except with the brand-owner suppliers. Any shortage and cessation in supply could adversely affect its business and results of operations. Further, its revenue generation is majorly concentrated in the particular geographical regions of Delhi and Uttar Pradesh and any adverse developments affecting its operations in these regions could have a significant impact on its revenue and results of operations.

The company is coming out with a maiden IPO of 48,91,200 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 167-176 per equity share. The aggregate size of the offer is around Rs 81.68 crore to Rs 86.09 crore based on lower and upper price band respectively. On performance front, the Revenue from operations increased by 9.70%, rising from Rs 12,333.26 lakh in FY 2023-24 to Rs 13,529.49 lakh in FY 2024-25. Profit after tax for FY 2024-25 recorded over two-fold increase, climbing to Rs 2,095.42 lakh from Rs 827.41 lakh in FY 2023-24.

Meanwhile, the company is working to enhance its e-commerce operations by entering into arrangements with digital advisors and specialists to support online sales growth. In the B2B segment, the company aims to increase volumes through partnerships with established e-commerce platforms and other retailers. To strengthen its e-commerce presence, it has expanded its engagement with e- commerce marketplace by listing its products directly on their platform in addition to its existing B2B wholesale arrangement, thereby enhancing visibility and accessibility to end consumers. In the B2B segment, it has further broadened its reach by onboarding well-known retail company focused on e-commerce branding as a key B2B partner, which supports its objective of increasing volumes and expanding its customer base through established retail networks.