Brandman Retail IPO: Walking with Global Giants — A New Balance for Investors?
Brandman Retail Limited, a premier distributor of global athleisure brands like New Balance and Salomon, is launching its ₹86.09 crore SME IPO tomorrow, February 4, 2026. With an asset-light model and a massive 153% jump in profit, this post explores the company’s "Sneakrz" multi-brand strategy and whether the ₹2.81 lakh entry price is worth the stride.
Live IPO Tracking Available
Check live GMP, allotment status, and deep analysis for this IPO.
1. Business Overview: The Athleisure Accelerator
Founded in 2021, Brandman Retail Limited has rapidly become a key bridge for international sports and lifestyle brands entering the Indian market. They operate through a sophisticated multi-channel model across four pillars: Distribution, Licensing, Retail (EBOs/MBOs), and E-commerce.
The Brand Portfolio:
Major Partnerships: Primary licensee for New Balance and distribution agreements with global giants like On, Rockport, Salomon, and Descente.
"Sneakrz" Concept: Their proprietary Multi-Brand Outlet (MBO) brand that curates premium international footwear for the Indian consumer.
Presence: Operates 14 Exclusive Brand Outlets (EBOs) and 5 MBOs across North India (Delhi, Gurugram, Noida, Lucknow, etc.).
Digital Dominance: Over 41% of their revenue is driven by online marketplaces like Flipkart, Ajio, and their own D2C platforms.
2. Key IPO Details & Timeline
The IPO opens for bidding tomorrow morning.
| Event / Detail | Status / Date |
|---|---|
| Bidding Period | Feb 4 – Friday, Feb 6, 2026 |
| Price Band | ₹167 to ₹176 per share |
| Lot Size | 800 Shares |
| Retail Min Investment | ₹2,81,600 (Minimum 2 Lots / 1,600 shares) |
| Total Issue Size | ₹86.09 Crore (100% Fresh Issue) |
| Basis of Allotment | Monday, February 9, 2026 |
| Listing Date | Wednesday, February 11, 2026 |
| Listing Exchange | NSE SME (Emerge) |
3. Financial Strength: Scaling Profitability
Brandman Retail has demonstrated an aggressive growth trajectory, capitalizing on the "premiumization" of Indian footwear:
Revenue Growth: Soared from ₹46.31 Cr (FY23) to ₹135.29 Cr (FY25).
Profitability: Net Profit (PAT) jumped from ₹8.27 Cr (FY24) to ₹20.95 Cr (FY25)—a massive 153% increase.
Strong Margins: Boasts an EBITDA margin of 23.02% and a PAT margin of 15.49% (FY25).
Efficiency: Exceptional ROE of 108.47% and ROCE of 70.48%, indicating high capital efficiency.
4. Objectives: Funding the Retail Network
The ₹86.09 Cr fresh capital will be deployed to fuel their next phase of expansion:
Retail Expansion (₹27.92 Cr): Setting up 15 new Exclusive and Multi-Brand Outlets.
Working Capital (₹38.54 Cr): To manage inventory for their expanding store network and e-commerce fulfillment.
General Corporate Purposes: Strategic initiatives and digital infrastructure upgrades.
5. Grey Market Premium (GMP) & Valuation
As of February 3, 2026, the GMP for Brandman Retail is ₹0.
Valuation: At the upper price band of ₹176, the post-issue P/E ratio is approximately 12.38x. This is significantly lower than listed peers like Redtape (47x) and Bata India (47x), suggesting the issue is priced attractively to leave room for investors.
Market Outlook: While the GMP is currently flat, the company’s entry into Adani Airports (10 upcoming stores) and its focus on the high-growth athleisure segment make it a strong candidate for institutional interest.
6. Risks to Consider
Brand Dependency: Heavy reliance on the New Balance brand (over 45% of revenue).
Inventory Risk: High working capital needs to maintain stock across various sizes and styles.
Cash Flow: The company has experienced negative operating cash flow in the past due to heavy stock-piling for expansion.
7. Final Verdict: A Premium SME Play
Brandman Retail is one of the larger SME IPOs this season. Its "Asset-Light" model and association with global brands provide a unique "moat" in the retail sector. While the ticket size of ₹2.81 lakh is standard for high-priced SMEs, the strong ROE and reasonable P/E make it a compelling "Subscribe" for long-term investors tracking the Indian consumer story.