Khadim India Limited agreed to Spin-Off KSR Footwear limited on August 10, 2023. The board has given in-principle approval of the demerger of the Distribution Business of the Company, as a going concern under a Scheme of Arrangement with a company to be incorporated as a Wholly-owned subsidiary of Khadim lndia Limited, wherein the entire shareholding of the Resultant Company is to be held directly by the shareholders of Khadim proportionate to their shareholding in Khadim. As of September 29, 2024, Board of directors of the Khadim has approved the transaction.

Khadim India Limited shareholders will receive one share in KSR footwear for each share share they held in Khadim india. The turnover of the Distribution Business, as on March 31, 2023, was INR 2.1 billion. The scheme is subject to receipt of approvals from the statutory, regulatory and customary approvals, including approvals from the BSE Limited, National Stock Exchange of India Limited, jurisdictional National Company Law Tribunal and the shareholders and creditors of the companies involved in the Scheme.

As of February 23, 2024, the demerger is expected to close in next six months. Saffron Capital Advisors Private Limited provided the fairness opinion.