sp apparels limited

438 Pages·2016·4.54 MB·English

PROSPECTUS
Dated August 6, 2016
Please read Sections 26 and32 of the Companies Act, 2013
Book Built Offer
S.P. APPARELS LIMITED
Our Company was incorporated in Avinashi,Tamil Nadu as S.P. Apparels Limited, a public limited company under Part IX of the Companies Act, 1956, pursuant to a certificate of incorporation
dated November 18, 2005 issued by the Registrar of Companies, Tamil Nadu located at Coimbatore. For further details, see the section “History and Certain Corporate Matters” on page 144.
Registered Office and Corporate Office: 39-A, Extension Street, KaikattipudurAvinashi 641 654, Tirupur District, Tamil Nadu, India
For information in relation to changes in our registered office, see the section “History and Certain Corporate Matters” on page144. Tel: [phone]; Fax: [phone]
Contact Person: Ms. K. Vinodhini,Company Secretary and Compliance Officer; E-mail:[email protected]; Website: http://www.spapparels.com
Corporate Identity Number:U18101TZ2005PLC012295
OUR PROMOTERS: MR. P.SUNDARARAJAN AND MRS. S. LATHA
INITIAL PUBLIC OFFERING OF 8,922,375* EQUITY SHARES OF FACE VALUE OF `10 EACH (THE “EQUITY SHARES”) OF S.P. APPARELS LIMITED (“COMPANY”)
FOR CASH AT A PRICE OF `268 PER EQUITY SHARE (INCLUDING A PREMIUM OF `258 PER EQUITY SHARE) (THE “OFFER PRICE”) AGGREGATING UP TO
` 2,391.20 MILLION CONSISTING OF A FRESH ISSUE OF UP TO 8,022,375* EQUITY SHARES BY OUR COMPANY AGGREGATING UP TO `2,150 MILLION (THE
“FRESH ISSUE”) AND AN OFFER FOR SALE OF UP TO 900,000 EQUITY SHARES AGGREGATING UP TO `241.20 MILLION BY NEW YORK LIFE INVESTMENT
MANAGEMENT INDIA FUND (FVCI) II LLC (THE “SELLING SHAREHOLDER” AND SUCH OFFER OF EQUITY SHARES BY THE SELLING SHAREHOLDER, THE
“OFFER FOR SALE”). THE FRESH ISSUE AND THE OFFER FOR SALE ARE TOGETHER REFERRED TO AS THE “OFFER”. THE OFFER WILL CONSTITUTE
35.45%* OF THE FULLY-DILUTED POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.
THE FACE VALUE OF THE EQUITY SHARES IS `10 EACH. THE OFFER PRICE FOR EACH EQUITY SHARE IS `268 AND IS 26.80 TIMES OF THE FACE VALUE OF
THE EQUITY SHARE.
*Subject to finalization of Basis of Allotment.
In case of any revision in the Price Band, the Bid/Offer Period will be extended by at least three additional Working Days after such revision of the Price Band, subject to the Bid/Offer
Period not exceeding ten Working Days. Any revision in the Price Band and the revised Bid/Offer Period, if applicable, will be widely disseminated by notification to the BSE Limited (the
“BSE”) and the National Stock Exchange of India Limited (the “NSE”), by issuing a press release, and also by indicating the change on the website of the book running lead managers(the
“BRLMs”) and the terminals of the other members of the Syndicate and by intimation to the Self Certified Syndicate Banks (“SCSBs”) and the Registered Brokers.
In terms of Rule 19(2)(b)(i) of the Securities Contracts (Regulation) Rules, 1957, as amended (the “SCRR”), this is an Offer for at least 25% of the post-Offer capital. The Offer is being
made through the 100%Book Building Process in compliance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2009, as amended (the “SEBI ICDR Regulations”), wherein not more than 50% of the Offer will be allocated on a proportionate basis to Qualified Institutional Buyers
(“QIBs”) (the “QIB Category”), provided that our Company and the Selling Shareholder may, in consultation with the BRLMs, allocate up to 60% of the QIB Category to Anchor
Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (the “Anchor Investor Portion”), of which one-third was reserved for domestic Mutual Funds, subject
to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. Further, 5% of the QIB Category (excluding the Anchor Investor Portion)
is available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the QIB Categoryis available for allocation on a proportionate basis to all QIBs (other
than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Offer is available for allocation on
a proportionate basis to Non-Institutional Investors and not less than 35% of the Offer will be available for allocation to Retail Individual Investors in accordance with the SEBI ICDR
Regulations, subject to valid Bids being received at or above the Offer Price. All Bidders, other than Anchor Investors, were required to mandatorily utilize the Application Supported
by Blocked Amount (“ASBA”) process providing details of their respective bank accounts which will be blocked by the Self Certified Syndicate Banks (“SCSBs”), to participate in the
Offer.Anchor Investors are not permitted to participate in the Offer through the ASBA process. For details, see the section “Offer Procedure” on page 363.
RISK IN RELATION TO THE FIRST ISSUE
This being the first public issue of our Company, there has been no formal market for the Equity Shares. The face value of the Equity Shares is `10 each and the Offer Price of `268 is
26.80 times of the face value.The Offer Price (determined and justified by our Companyand the Selling Shareholder, in consultation with the BRLMs, as stated in the section “Basis for
Offer Price” on page 89) should not be taken to be indicative of the market price of the Equity Shares after the Equity Shares are listed. No assurance can be given regarding an active or
sustained trading in the Equity Shares or regarding the price at which the Equity Shares will be traded after listing.
GENERAL RISKS
Investments in equity and equity-related securities involve a degree of risk and investors should not invest any funds in the Offer unless they can afford to take the risk of losing their
entire investment. Investors are advised to read the risk factors carefully before taking an investment decision in the Offer. For taking an investment decision, investors must rely on
their own examination of our Company and the Offer, including the risks involved. The Equity Shares offered in the Offer have not been recommended or approved by the Securities
and Exchange Board of India (the “SEBI”), nor does the SEBI guarantee the accuracy or adequacy of the contents of this Prospectus. Specific attention of the investors is invited to the
section “Risk Factors” on page 14.
COMPANY’S AND SELLING SHAREHOLDER’S ABSOLUTE RESPONSIBILITY
Our Company, having made all reasonable inquiries, accepts responsibility for and confirms that this Prospectus contains all information with regard to our Company and the Offer,
which is material in the context of the Offer, that the information contained in this Prospectus is true and correct in all material aspects and is not misleading in any material respect, that
the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which make this Prospectus as a whole or any of such information or the
expression of any such opinions or intentions misleading in any material respect. Further, the Selling Shareholder assumes responsibility only for statements expressly made by such
Selling Shareholder in relation to itself in this Prospectus and the Equity Shares being offered by it in the Offer for Sale.
LISTING
The Equity Shares offered through thisProspectus are proposed to be listed on the BSE and the NSE. Our Company has received an ‘in-principle’ approval from each of the BSE and the
NSE for the listing of the Equity Shares pursuant to letters dated January 8, 2016 and January 29, 2016, respectively. For the purposes of the Offer, the Designated Stock Exchange will
be the BSE. A copy of the Red Herring Prospectus dated July 19, 2016 and this Prospectus dated August 6, 2016 and all necessary attachments have been delivered for registration to the
Registrar of Companies, Tamil Nadu located at Coimbatore as required under Section 26(4) of the Companies Act, 2013.
BOOK RUNNING LEAD MANAGERS REGISTRAR TO THE OFFER
Motilal Oswal Investment Advisors Private Limited Centrum Capital Limited Link Intime India Private Limited
Motilal Oswal Tower, Rahimtullah Sayani Road, Centrum House, CST Road, Vidyanagari Marg C-13, Pannalal Silk Mills Compound
Opposite Parel ST Depot, Prabhadevi Kalina, Santacruz (East), Mumbai 400 098 L.B.S. Marg, Bhandup West
Mumbai- 400 025, Maharashtra, India Maharashtra, India Mumbai 400 078
Tel: [phone] Tel: [phone] Maharashtra, India
Fax: [phone] Fax: [phone] Tel: [phone]
E-mail:[email protected] E-mail:[email protected] Fax: + 91 22 2596 0329
Investor Grievance E-mail:[email protected] Investor Grievance E-mail:[email protected] E-mail: [email protected]
Website:http://www.motilaloswalgroup.com Website: http://www.centrum.co.in Website: www.linkintime.co.in
Contact person:Subodh Mallya Contact person:Aanchal Wagle Investor Grievance E-mail: [email protected]
SEBI Registration No.: INM000011005 SEBI Registration No.: INM000010445 Contact person: Shanti Gopalkrishnan
CIN: U67190MH2006PTC160583 CIN: L65990MH1977PLC019986 SEBI Registration No.: INR000004058
BID/OFFER PROGRAMME
BID/OFFER OPENED ON : AUGUST 2, 2016(1) BID/OFFER CLOSED ON : AUGUST 4, 2016
(1) The Anchor Investor Bid/Offer Period was one Working Day prior to the Bid/Offer Opening Date i.e., August 1, 2016.
TABLE OF CONTENTS

SECTION I: GENERAL ................................................................................................................................................ 3 
DEFINITIONS AND ABBREVIATIONS ....................................................................................................................... 3 
PRESENTATION OF FINANCIAL, INDUSTRY AND MARKET DATA ................................................................ 11 
FORWARD-LOOKING STATEMENTS ...................................................................................................................... 13 
SECTION II: RISK FACTORS .................................................................................................................................. 14 
SECTION III: INTRODUCTION .............................................................................................................................. 39 
SUMMARY OF INDUSTRY OVERVIEW .................................................................................................................. 39 
SUMMARY OF OUR BUSINESS ................................................................................................................................. 42 
SUMMARY FINANCIAL INFORMATION ................................................................................................................ 46 
THE OFFER .................................................................................................................................................................... 54 
GENERAL INFORMATION ......................................................................................................................................... 55 
CAPITAL STRUCTURE ................................................................................................................................................ 66 
OBJECTS OF THE OFFER ............................................................................................................................................ 77 
BASIS FOR OFFER PRICE ........................................................................................................................................... 89 
STATEMENT OF TAX BENEFITS .............................................................................................................................. 93 
SECTION IV: ABOUT OUR COMPANY ................................................................................................................ 96 
INDUSTRY ..................................................................................................................................................................... 96 
OUR BUSINESS ........................................................................................................................................................... 122 
REGULATIONS AND POLICIES ............................................................................................................................... 140 
HISTORY AND CERTAIN CORPORATE MATTERS ............................................................................................. 144 
OUR MANAGEMENT ................................................................................................................................................ 154 
OUR PROMOTERS, PROMOTER GROUP AND GROUP ENTITIES .................................................................... 170 
RELATED PARTY TRANSACTIONS ....................................................................................................................... 173 
DIVIDEND POLICY .................................................................................................................................................... 174 
SECTION V: FINANCIAL INFORMATION ........................................................................................................ 175 
FINANCIAL STATEMENTS ...................................................................................................................................... 175 
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS .............................................................................................................................................................. 285 
FINANCIAL INDEBTEDNESS .................................................................................................................................. 309 
SECTION VI: LEGAL AND OTHER INFORMATION ....................................................................................... 324 
OUTSTANDING LITIGATION AND MATERIAL DEVELOPMENTS.................................................................. 324 
GOVERNMENT AND OTHER APPROVALS .......................................................................................................... 328 
OTHER REGULATORY AND STATUTORY DISCLOSURES ............................................................................... 340 
SECTION VII: OFFER INFORMATION .............................................................................................................. 354 
TERMS OF THE OFFER.............................................................................................................................................. 354 
OFFER STRUCTURE .................................................................................................................................................. 358 
OFFER PROCEDURE .................................................................................................................................................. 363 
SECTION VIII: MAIN PROVISIONS OF THE ARTICLES OF ASSOCIATION .......................................... 408 
SECTION IX: OTHER INFORMATION ............................................................................................................... 434 
MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTION .................................................................... 434 
DECLARATION .......................................................................................................................................................... 437
SECTION I: GENERAL

DEFINITIONS AND ABBREVIATIONS

This Prospectus uses certain definitions and abbreviations which, unless the context otherwise indicates or
implies, shall have the meaning as provided below. References to any legislation, act or regulation will be
deemed to include all amendments and modifications notified as of the date of this Prospectus.

General Terms

Term Description

“our Company” or “the Company” or S.P. Apparels Limited, a public company incorporated under Part IX of the Companies Act,
“SPAL” 1956, whose registered office is situated at 39-A, Extension Street, Kaikattipudur, Avinashi 641
654, Tirupur District, Tamil Nadu, India
“we” or “us” or “our” Unless the context otherwise indicates or implies, refers to our Company together with its
Subsidiaries

Company Related Terms

Term Description

Articles or Articles of Association The articles of association of our Company, as amended
Audit Committee The committee of the Board of Directors constituted as our Company’s audit committee in
accordance with the Listing Regulations and the Companies Act, 2013. For details see the section
“Our Management – Corporate Governance – Committees of the Board” on page 161
Auditors or Statutory Auditors The statutory auditors of our Company, namely, Deloitte Haskins & Sells, Chartered Accountants
Board or Board of Directors The board of directors of our Company or a duly constituted committee thereof
CIPL Crocodile International Pte. Ltd.
Compulsorily Convertible Preference Compulsorily convertible preference shares of our Company of face value of `10 each
Shares or CCPS
Corporate Social Responsibility The committee of the Board of Directors constituted as our Company’s corporate social
Committee or CSR Committee responsibility committee in accordance with the Companies Act, 2013. For details see the section
“Our Management – Corporate Governance – Committees of the Board” on page 161
CPPL Crocodile Products Private Limited
Director(s) The director(s) of our Company
Equity Shares Equity shares of our Company of face value of `10 each
Euro Asia Euro Asia Agencies Limited
Group Entities The companies that are covered under the applicable accounting standards (Accounting Standard
18) in the Restated Consolidated Financial Statements of our Company and any other company
considered material by our Board, which are disclosed in the section “Our Promoters, Promoter
Group and Group Entities – Group Entities” on page 172
Investment Agreement The investment agreement dated March 18, 2013 between Euro Asia Agencies Limited and our
Company
IPO Committee The IPO Committee of the Board of Directors as described in the section “Our Management –
Corporate Governance – Committees of the Board” on page 161
Memorandum or Memorandum of The memorandum of association of our Company, as amended
Association
Nomination and Remuneration The committee of the Board of Directors constituted as our Company’s nomination and
Committee remuneration committee in accordance with the Listing Regulations and the Companies Act,
2013. For details see the section “Our Management – Corporate Governance – Committees of the
Board” on page 161
NYLIM India Fund II or the Selling New York Life Investment Management India Fund (FVCI) II LLC, an FVCI incorporated under
Shareholder the laws of the Republic of Mauritius and having its registered office at 4th Floor, Ebene Heights,
34 Cyber City, Ebene, Republic of Mauritius
Poornam Poornam Enterprises Private Limited (previously, Poornam Beverages Private Limited)
Promoters Mr. P. Sundararajan and Mrs. S. Latha
Promoter Group The entities and persons constituting the promoter group of our Company in terms of Regulation
2(1)(zb) of the SEBI ICDR Regulations and which are disclosed in the section “Our Promoters,
Promoter Group and Group Entities – Promoter Group” on page 171
Registered Office and Corporate The registered office and corporate office of our Company, located at 39-A, Extension Street,
Office Kaikattipudur, Avinashi 641 654, Tirupur District, Tamil Nadu, India
Registrar of Companies or RoC The Registrar of Companies, Tamil Nadu situated at Coimbatore
Restated Consolidated Financial Restated consolidated financial statement of assets and liabilities for the years ended March 31,
Statements 2016, March 31, 2015, March 31, 2014, March 31, 2013 and March 31, 2012 and statement of
profit and loss and statement of cash flows for the years ended March 31, 2016, March 31, 2015,
March 31, 2014, March 31, 2013 and March 31, 2012 for our Company and its Subsidiaries read
along with all the notes thereto and included in the section “Financial Statements” on page 175
Restated Financial Statements Collectively, the Restated Consolidated Financial Statements and Restated Standalone Financial
Statements
3
Term Description

Restated Standalone Financial Restated standalone financial statement of assets and liabilities for the years ended March 31,
Statements 2016, March 31, 2015, March 31, 2014, March 31, 2013 and March 31, 2012 and statement of
profit and loss and statement of cash flows for the years ended March 31, 2016, March 31, 2015,
March 31, 2014, March 31, 2013 and March 31, 2012 for our Company read along with all the
notes thereto and included in the section “Financial Statements” on page 175
Risk Management Committee The committee of the Board of Directors constituted as our Company’s risk management
committee in accordance with the Listing Regulations and the Companies Act, 2013. For details
see the section “Our Management – Corporate Governance – Committees of the Board” on page
161
Redeemable Preference Shares or RPS Redeemable preference shares of our Company of face value of `10 each
Shareholders The holders of the Equity Shares
Slump Sale Agreement Slump Sale Agreement dated July 31, 2015 between our Company and Poornam
SPUK S.P. Apparels (UK) (P) Limited
SSSA Share Subscription and Shareholders’ Agreement dated October 26, 2006 among our Company,
our Promoters and NYLIM India Fund II, as amended pursuant to an agreement dated December
23, 2015
Stakeholders’ Relationship Committee The stakeholders relationship committee of the Board of Directors as described in the section
“Our Management – Corporate Governance – Committees of the Board” on page 161
Subsidiaries The subsidiaries of our Company, namely:

1. Crocodile Products Private Limited; and
2. S.P. Apparels (UK) (P) Limited

For details, see the section “History and Certain Corporate Matters – Our Subsidiaries” on page
149

Offer Related Terms

Term Description

Acknowledgement Slip The slip or document issued by the Designated Intermediary to a Bidder as proof of registration of
the Bid
Allotment/Allot/Allotted Allotment of the Equity Shares pursuant to the Fresh Issue and transfer of the Equity Shares
offered by the Selling Shareholder pursuant to the Offer for Sale to the successful Bidders
Allotment Advice Note or advice or intimation of Allotment sent to the successful Bidders who have been or are to
be Allotted the Equity Shares after the Basis of Allotment has been approved by the Designated
Stock Exchange
Allottee A successful Bidder to whom the Equity Shares are Allotted
Anchor Investor A Qualified Institutional Buyer who applied under the Anchor Investor Portion, in accordance
with the SEBI ICDR Regulations
Anchor Investor Application Form Form used by an Anchor Investor to Bid in the Anchor Investor Portion and which will be
considered as an application for Allotment in terms of the Red Herring Prospectus and this
Prospectus
Anchor Investor Allocation Price `268 for each Equity Share, being the final price at which Equity Shares have been allocated to
Anchor Investors in terms of the Red Herring Prospectus and this Prospectus which was decided
by our Company and the Selling Shareholder, in consultation with the BRLMs
Anchor Investor Bid/Offer Period The day, one Working Day prior to the Bid/Offer Opening Date, on which Bids by Anchor
Investors were submitted and allocation to Anchor Investors was completed, i.e., August 1, 2016
Anchor Investor Offer Price The final price at which Equity Shares have been Allotted to Anchor Investors in terms of the Red
Herring Prospectus and this Prospectus, which price will be equal to or higher than the Offer
Price, but not higher than the Cap Price. The Anchor Investor Offer Price was decided by our
Company and the Selling Shareholder, in consultation with the BRLMs
Anchor Investor Portion Up to 60% of the QIB Category or up to 2,676,685 Equity Shares, which may be allocated by our
Company and the Selling Shareholder, in consultation with the BRLMs, to Anchor Investors on a
discretionary basis in accordance with the SEBI ICDR Regulations. One-third of the Anchor
Investor Portion was reserved for domestic Mutual Funds, subject to valid Bids being received
from domestic Mutual Funds at or above the Anchor Investor Allocation Price
Application Supported by Blocked An application, whether physical or electronic, used by Bidders, other than Anchor Investors,
Amount or ASBA which will be considered as the application for Allotment in terms of the Red Herring Prospectus
and this Prospectus, authorizing an SCSB to block the Bid Amount in the ASBA Account. ASBA
is mandatory for all Bidders (except Anchor Investors) participating in the Offer
ASBA Account An account maintained with an SCSB and specified in the ASBA Form submitted by ASBA
Bidders, which may be blocked by such SCSB to the extent of the Bid Amount
ASBA Bidder Bidders (except Anchor Investors) in the Offer
ASBA Form An application form, whether physical or electronic, used by ASBA Bidders, which will be
considered as the application for Allotment in terms of the Red Herring Prospectus and this
Prospectus
Basis of Allotment The basis on which Equity Shares will be Allotted to successful Bidders under the Offer and
which is described in the section “Offer Procedure” on page 363
Bid An indication to make an offer during the Bid/Offer Period by a Bidder pursuant to submission of
the Bid cum Application Form, or during the Anchor Investor Bid/Offer Period by the Anchor
4
Term Description

Investors pursuant to submission of the Anchor Investor Application Form, to subscribe to or
purchase the Equity Shares at a price within the Price Band, including all revisions and
modifications thereto, in accordance with the SEBI ICDR Regulations
Bid Amount In relation to each Bid, the highest value of the optional Bids indicated in the Bid cum
Application Form and payable by the Bidder/blocked in the ASBA Account upon submission of
such Bid cum Application Form
Bid cum Application Form The Anchor Investor Application Form or the ASBA Form, as applicable, in terms of which a
Bidder will make a Bid and which will be considered as the application for Allotment for the
purposes of the Red Herring Prospectus and this Prospectus, whether applying through ASBA or
otherwise
Bid Lot 55 Equity Shares and in multiples thereof
Bid/Offer Closing Date Except in relation to any Bids received from the Anchor Investors, the date after which the
Designated Intermediaries will not accept any Bids for the Offer, which was notified in all
editions of the English national newspaper Financial Express, all editions of the Hindi national
newspaper Jansatta, and Coimbatore edition of the Tamil newspaper Dinamani, each with wide
circulation, i.e., August 4, 2016
Bid/Offer Opening Date Except in relation to any Bids received from the Anchor Investors, the date on which the
Designated Intermediaries will start accepting Bids for the Offer, which was notified in all
editions of the English national newspaper Financial Express, all editions of the Hindi national
newspaper Jansatta, and Coimbatore edition of the Tamil newspaper Dinamani, each with wide
circulation, i.e., August 2, 2016
Bid/Offer Period Except in relation to Anchor Investors, the period between the Bid/Offer Opening Date and the
Bid/Offer Closing Date, inclusive of both days, during which prospective Bidders could submit
their Bids, including any revisions thereof, i.e., from August 2, 2016 to August 4, 2016
Bidder Any prospective investor who makes a Bid pursuant to the terms of the Red Herring Prospectus
and the Bid cum Application Form and unless otherwise stated or implied, includes an Anchor
Investor
Book Building Process or Book The book building process, as provided in Schedule XI of the SEBI ICDR Regulations, in terms
Building Method of which the Offer is being made
Book Running Lead Managers or The book running lead managers to the Offer, in this case being Centrum Capital and Motilal
BRLMs Oswal
Broker Centres Broker centres notified by the Stock Exchanges where Bidders can submit the Bid cum
Application Forms to a Registered Broker. The details of such Broker Centres, along with the
names and contact details of the Registered Brokers are available on the respective websites of the
Stock Exchanges
CAN or Confirmation of Allocation Notice or intimation of allocation of the Equity Shares to be sent to the Anchor Investors, who
Note will be allocated the Equity Shares, after the Anchor Investor Bid/Offer Period
Cap Price `268 for each Equity Share, being the higher end of the Price Band above which the Offer Price
and the Anchor Investor Offer Price will not be finalized and above which no Bids will be
accepted
Collecting Depository Participants or A depository participant as defined under the Depositories Act, 1996, registered with the SEBI
CDP and who is eligible to procure Bids at the Designated CDP Locations in terms of circular no.
CIR/CFD/POLICYCELL/11/2015 dated November 10, 2015 issued by SEBI
Centrum Capital Centrum Capital Limited
Cut-off Price The Offer Price finalized by our Company and the Selling Shareholder in consultation with the
BRLMs, which may be any price within the Price Band. Only Retail Individual Investors are
entitled to Bid at the Cut-off Price. No other category of Bidders is entitled to Bid at the Cut-off
Price
Designated Branches Such branches of the SCSBs which will collect the Bid cum Application Forms used by the
ASBA Bidders and a list of which is available on the website of the SEBI at
http://www.sebi.gov.in/sebiweb/home/list/5/33/0/0/Recognised-Intermediaries and updated from
time to time
Designated Date The date on which funds are transferred by the Escrow Collection Banks from the Escrow
Account, or the amounts blocked by the SCSBs are transferred from the ASBA Accounts, as the
case may be, to the Public Offer Account or the Refund Account, as appropriate, as the case may
be
Designated Intermediaries Members of the Syndicate, Sub-syndicate Members, SCSBs, Registered Brokers, the CDPs and
RTAs, who are authorized to collect Bid cum Application Forms from the Bidders in relation to
the Offer
Designated CDP Locations Such locations of the CDPs where Bidders can submit the ASBA Forms to CDPs. The details of
such Designated CDP Locations, along with names and contact details of the Collecting
Depository Participants eligible to accept ASBA Forms are available on the respective websites
of the Stock Exchanges
(http://www.bseindia.com/Static/Markets/PublicIssues/RtaDp.aspx?expandable =6 and
http://www.nseindia.com/products/content/equities/ipos/asba_procedures.htm)
Designated RTA Locations Such locations of the RTAs where Bidders can submit the ASBA Forms to RTAs. The details of
such Designated RTA Locations, along with names and contact details of the RTAs eligible to
accept ASBA Forms are available on the websites of the respective Stock Exchanges
(http://www.bseindia.com/Static/Markets/PublicIssues/RtaDp.aspx?expandable=6 and
http://www.nseindia.com/products/content/equities/ipos/asba_procedures.htm)
Designated Stock Exchange The BSE
Draft Red Herring Prospectus or The draft red herring prospectus dated December 28, 2015 issued in accordance with the SEBI
5
Term Description

DRHP ICDR Regulations, which did not contain complete particulars of the price at which the Equity
Shares will be Allotted and the size of the Offer
Eligible FPIs FPIs from jurisdictions outside India where it is not unlawful to make an offer or invitation under
the Offer and in relation to whom this Prospectus constitutes an invitation to subscribe to or
purchase the Equity Shares offered thereby
Eligible NRI(s) NRI(s) from jurisdictions outside India where it is not unlawful to make an offer or invitation
under the Offer and in relation to whom this Prospectus constitutes an invitation to subscribe to or
purchase the Equity Shares offered thereby
Escrow Account Account opened with the Escrow Collection Banks and in whose favor the Bidders (excluding the
ASBA Bidders) will issue cheques or drafts in respect of the Bid Amount when submitting a Bid
Escrow Agreement The agreement dated July 11, 2016 entered into among our Company, the Selling Shareholder,
the Registrar to the Offer, the BRLMs, the Syndicate Members, the Escrow Collection Banks and
the Refund Banks for collection of the Bid Amounts and where applicable, refunds of the
amounts collected to the Bidders (excluding the ASBA Bidders) on the terms and conditions
thereof
Escrow Collection Banks or Bankers The banks which are clearing members and registered with the SEBI as bankers to an issue and
to the Offer with which the Escrow Account for Anchor Investors have been opened, in this case being ICICI
Bank Limited and IDBI Bank Limited
First Bidder Bidder whose name appears first in the Bid cum Application Form or the Revision Form
Floor Price `258 for each Equity Share, being the lower end of the Price Band, subject to any revision
thereto, at or above which the Offer Price and the Anchor Investor Offer Price has been finalized
and below which no Bids will be accepted
Fresh Issue The fresh issue of up to 8,022,375* Equity Shares aggregating up to `2,150 million by our
Company
* Subject to finalization of Basis of Allotment
Motilal Oswal Motilal Oswal Investment Advisors Private Limited
Mutual Fund Portion 5% of the QIB Category (excluding the Anchor Investor Portion) or 89,265* Equity Shares,
which is available for allocation only to Mutual Funds on a proportionate basis
* Subject to finalization of Basis of Allotment
Net Proceeds The gross proceeds of the Fresh Issue less our Company’s share of the Offer related expenses. For
further information about use of the Net Proceeds and the Offer related expenses, see the section
“Objects of the Offer” on page 77
Non-Institutional Category The portion of the Offer being not less than 15% of the Offer or 1,338,370* Equity Shares, which
is available for allocation on a proportionate basis to Non-Institutional Investors, subject to valid
Bids being received at or above the Offer Price
* Subject to finalization of Basis of Allotment
Non-Institutional Investors/ NIIs All Bidders, including Category III FPIs, that are not QIBs or Retail Individual Investors and who
have Bid for Equity Shares for an amount of more than `200,000 (but not including NRIs other
than Eligible NRIs)
Offer The initial public offering of 8,922,375* Equity Shares for cash at a price of `268 each,
aggregating up to `2,391.20 million comprising the Fresh Issue and an Offer for Sale by the
Selling Shareholder
* Subject to finalization of Basis of Allotment
Offer Agreement The agreement dated December 28, 2015 among our Company, the Selling Shareholder and the
BRLMs, pursuant to which certain arrangements are agreed to in relation to the Offer
Offer for Sale The offer for sale of up to 900,000 Equity Shares aggregating up to `241.20 million by the
Selling Shareholder
Offer Price `268 for each Equity Share, being the final price at which Equity Shares will be Allotted to
successful Bidders (except Anchor Investors) in terms of this Prospectus. The Offer Price has
been decided by our Company and the Selling Shareholder in consultation with the BRLMs on
the Pricing Date
Price Band Price band of a minimum price of `258 per Equity Share (Floor Price) and the maximum price of
`268 per Equity Share (Cap Price), including any revisions thereof. The Price Band and the
minimum Bid Lot for the Offer was decided by our Company and the Selling Shareholder in
consultation with the BRLMs and was advertised in all editions of the English national newspaper
Financial Express, all editions of the Hindi national newspaper Jansatta, and Coimbatore edition
of the Tamil newspaper Dinamani, each with wide circulation, at least five Working Days prior to
the Bid/Offer Opening Date, with the relevant financial ratios calculated at the Floor Price and at
the Cap Price and such advertisement will be made available to the Stock Exchanges for the
purpose of uploading on their websites
Pricing Date The date on which our Company and the Selling Shareholder, in consultation with the BRLMs
finalized the Offer Price, i.e., August 6, 2016
Prospectus This prospectus dated August 6, 2016 filed with the RoC in accordance with Section 26 of the
Companies Act, 2013, containing, inter alia, the Offer Price that is determined at the end of the
Book Building Process, the size of the Offer and certain other information, including any addenda
or corrigenda thereto
Public Offer Account The bank account opened with the Banker to the Offer under Section 40 of the Companies Act,
2013 to receive money from the Escrow Accounts on the Designated Date, and into which the
funds will be transferred by the SCSBs from the ASBA Accounts
Public Offer Bank Bank with whom the Public Offer Account for collection of bidding amount from the Escrow
Account and the ASBA Account will be opened, in this case being ICICI Bank Limited
QIB Category The portion of the Offer (including the Anchor Investor Portion) being not more than 50% of the
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Term Description

Offer consisting of 4,461,160* Equity Shares, which will be allocated on a proportionate basis to
QIBs, including the Anchor Investor Portion (in which allocation will be on a discretionary basis,
as determined by our Company and the Selling Shareholder, in consultation with the BRLMs),
subject to valid Bids being received at or above the Offer Price
* Subject to finalization of Basis of Allotment
Qualified Institutional Buyers, QIBs or Qualified institutional buyers as defined under Regulation 2(1)(zd) of the SEBI ICDR
QIB Bidders Regulations
Red Herring Prospectus or RHP The red herring prospectus dated July 19, 2016 issued in accordance with Section 32 of the
Companies Act, 2013 and the SEBI ICDR Regulations, and registered with the RoC on July 21,
2016, which did not have complete particulars of the price at which the Equity Shares have been
offered and the size of the Offer, including any addenda or corrigenda thereto
Refund Account The account opened with the Refund Bank, from which refunds (excluding to the ASBA
Bidders), if any, of the whole or part of the Bid Amount will be made
Refund Bank ICICI Bank Limited
Registered Brokers Stock brokers registered with the stock exchanges having nationwide terminals, other than the
Members of the Syndicate
Registrar and Share Transfer Agents or Registrars and share transfer agents registered with the SEBI and eligible to procure Bids at the
RTAs Designated RTA Locations in terms of circular no. CIR/CFD/POLICYCELL/11/2015 dated
November 10, 2015 issued by the SEBI
Registrar to the Offer/Registrar Registrar to the Offer, being Link Intime India Private Limited
Regulation S Regulation S under the Securities Act
Retail Category The portion of the Offer being not less than 35% of the Offer consisting of 3,122,845* Equity
Shares, which is available for allocation to Retail Individual Investor(s), in accordance with the
SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price
* Subject to finalization of Basis of Allotment
Retail Individual Investor(s)/ RIIs Individual Bidders who have Bid for Equity Shares for an amount of not more than `200,000
(including HUFs applying through the Karta and Eligible NRIs)
Revision Form The form used by the Bidders to modify the quantity of Equity Shares or the Bid Amount in their
Bid cum Application Forms or any previous Revision Form(s)

QIBs and Non-Institutional Investors are not allowed to lower their Bids (in terms of the quantity
of Equity Shares or the Bid Amount) at any stage
Self Certified Syndicate Bank(s) or The banks registered with the SEBI, offering services in relation to ASBA, and a list of which is
SCSB(s) available on the website of the SEBI at
http://www.sebi.gov.in/sebiweb/home/list/5/33/0/0/Recognised-Intermediaries and updated from
time to time
Share Escrow Agent The share escrow agent appointed pursuant to the Share Escrow Agreement, in this case being
Link Intime India Private Limited
Share Escrow Agreement The agreement dated July 11, 2016 entered into among the Selling Shareholder, our Company and
the Share Escrow Agent in connection with the transfer of Equity Shares under the Offer for Sale
by the Selling Shareholder and the credit of such Equity Shares to the demat account of the
Allottees
Specified Locations Bidding centres where the Syndicate will accept Bid cum Application Forms from ASBA
Bidders, a list of which is available at the website of the SEBI at
http://www.sebi.gov.in/sebiweb/home/list/5/33/0/0/Recognised-Intermediaries and updated from
time to time
Sub-syndicate Member(s) Such authorized representatives and/or sub brokers appointed by the members of the Syndicate to
collect Bid cum Application Forms
Syndicate Agreement The agreement dated July 11, 2016 entered into among the BRLMs, the Syndicate Members, our
Company, the Selling Shareholder and the Registrar to the Offer in relation to the collection of
Bids in the Offer (other than Bids directly submitted to the SCSBs under the ASBA process and
Bids submitted to Registered Brokers at the Broker Centres)
Syndicate Members Intermediaries registered with the SEBI who are permitted to carry out activities as an
underwriter, in this case being Motilal Oswal Securities Limited and Centrum Broking Limited
Syndicate or Members of the The BRLMs and the Syndicate Members
Syndicate
Transaction Registration Slip or TRS The slip or document issued by the Syndicate or the designated Intermediary (only on demand),
as the case may be, to the Bidder as proof of registration of the Bid
Underwriters The BRLMs and the Syndicate Members
Underwriting Agreement The agreement dated August 6, 2016 among the Underwriters, our Company, the Selling
Shareholder and the Registrar to the Offer
Working Day(s) All days other than second and fourth Saturdays of the month, Sundays or public holidays, on
which commercial banks in Mumbai are open for business; provided however, with reference to
(a) announcement of Price Band; and (b) Bid/Offer Period, shall mean all days except Saturday,
Sunday and public holidays on which commercial banks in Mumbai are open for business and (c)
the time period between the Bid/Offer Closing Date and the listing of the Equity Shares on the
Stock Exchanges, shall mean all trading days of Stock Exchanges, excluding Sundays and bank
holidays, as per the SEBI Circular SEBI/HO/CFD/DIL/CIR/P/2016/26 dated January 21, 2016

7
Technical/Industry Related Terms/Abbreviations

Term Description

EBO Exclusive Brand Outlet
EU-28 The European Union (EU) that comprises of 28 member states
FTP Foreign Trade Policy of the Government of India
GST Goods and Services Tax
ITC International Trade Centre
LFS Large Format Store
MBO Multi Brand Outlet
Technopak Technopak Advisors Private Limited
UAE United Arab Emirates
UN Comtrade United Nations Commodity Trade Statistics Database

Conventional Terms/Abbreviations and Reference to Other Business Entities

Term Description

AGM Annual General Meeting
Alternative Investment Funds or AIFs Alternative Investment Funds as defined and registered under the SEBI AIF Regulations
AS or Accounting Standards Accounting Standards issued by the Institute of Chartered Accountants of India
BSE BSE Limited
CAGR Compounded Annual Growth Rate
Category III FPIs FPIs registered as “Category III foreign portfolio investors” under the SEBI FPI Regulations
CDSL Central Depository Services (India) Limited
CFO Chief Financial Officer
CIN Corporate Identity Number
Client ID Client identification number of the Bidder’s beneficiary account
Companies Act The Companies Act, 1956, as amended and to the extent effective and the Companies Act, 2013,
read with the rules, regulations, clarifications and modifications thereunder
Companies Act, 1956 The Companies Act, 1956, as amended
Companies Act, 2013 The Companies Act, 2013, as amended and to the extent effective pursuant to the notification of
the Notified Sections, read with the rules, regulations, clarifications and modifications thereunder
Depositories NSDL and CDSL
Depositories Act The Depositories Act, 1996, as amended
DIN Director Identification Number
DIPP Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government
of India
DP or Depository Participant A depository participant as defined under the Depositories Act
DP ID Depository Participant’s identification number
EBITDA Earnings before Interest, Tax, Depreciation and Amortization
ECS Electronic Clearing Service
EPS Earnings per share
FCNR Account Foreign Currency Non-Resident Account, and has the meaning ascribed to the term “FCNR(B)
account” under the Foreign Exchange Management (Deposit) Regulations, 2000
FDI Foreign Direct Investment
FEMA The Foreign Exchange Management Act, 1999, as amended, read with the rules and regulations
thereunder
FEMA Regulations The Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside
India) Regulations, 2000, as amended
FIIs Foreign Institutional Investors as defined under the SEBI FPI Regulations
Financial Year or Fiscal or Fiscal Year The period of 12 months ending March 31 of that particular year
or FY
FIPB Foreign Investment Promotion Board
FPIs Foreign Portfolio Investors as defined under the SEBI FPI Regulations
FVCI Foreign venture capital investors as defined in and registered with the SEBI, under the SEBI
FVCI Regulations
GDP Gross Domestic Product
GoI or Government or Central Government of India
Government
HUF Hindu Undivided Family
ICAI The Institute of Chartered Accountants of India
IFRS International Financial Reporting Standards
Income-tax Act The Income-tax Act, 1961, as amended
Indian GAAP Generally Accepted Accounting Principles in India
IPO Initial Public Offering
IRDA Insurance Regulatory and Development Authority of India
IT Act Information Technology Act, 2000, as amended
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Term Description

KYC Know Your Customer
LIBOR London Interbank Offered Rate
Listing Regulations The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and includes the
agreement to be entered into between our company and each of the stock exchanges in relation to
listing of the equity shares on such stock exchanges
MCA Ministry of Corporate Affairs, Government of India
MICR Magnetic Ink Character Recognition (nine digit code appearing on a cheque leaf)
Mutual Fund(s) Mutual fund(s) registered with the SEBI under the Securities and Exchange Board of India
(Mutual Funds) Regulations, 1996, as amended
NACH National Automated Clearing House
NBFC Non-Banking Financial Company
NECS National Electronic Clearing Service
NEFT National Electronic Fund Transfer
Notified Sections The sections of the Companies Act, 2013 that have been notified by the MCA and are currently
effective
NR or Non-Resident A person resident outside India, as defined under the FEMA, including NRIs, FIIs, FPIs, QFIs and
FVCIs registered with the SEBI
NRE Account Non-Resident External Account, as defined under the Foreign Exchange Management (Deposit)
Regulations, 2000, as amended
NRI A person resident outside India, who is a citizen of India or a person of Indian origin, and will
have the meaning ascribed to such term in as defined under the Foreign Exchange Management
(Deposit) Regulations, 2000, as amended
NRO Account Non-Resident Ordinary Account, and has the meaning ascribed to such term in the Foreign
Exchange Management (Deposit) Regulations, 2000
NSDL National Securities Depository Limited
NSE The National Stock Exchange of India Limited
OCB or Overseas Corporate Body A company, partnership, society or other corporate body owned directly or indirectly to the
extent of at least 60% by NRIs including overseas trusts, in which not less than 60% of
beneficial interest is irrevocably held by NRIs directly or indirectly and which was in existence
on October 3, 2003 and immediately prior to such date had taken benefits under the general
permission granted to OCBs under FEMA. OCBs are not allowed to invest in the Offer
p.a. Per annum
P/E Ratio Price/Earnings Ratio
PAN Permanent Account Number allotted under the Income-tax Act
PAT Profit After Tax
PIO Persons of Indian Origin
PSAR Act Private Security Agencies (Regulation) Act, 2005, as amended
PSS Act Payment and Settlement Systems Act, 2007, as amended
QFIs Qualified Foreign Investors as defined under the SEBI FPI Regulations
RBI Reserve Bank of India
RBI Act The Reserve Bank of India Act, 1934, as amended
RoNW Return on Net Worth
RTGS Real Time Gross Settlement
SCRA The Securities Contracts (Regulation) Act, 1956, as amended
SCRR The Securities Contracts (Regulation) Rules, 1957, as amended
SEBI The Securities and Exchange Board of India constituted under the SEBI Act
SEBI Act The Securities and Exchange Board of India Act, 1992, as amended
SEBI AIF Regulations The Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012,
as amended
SEBI FII Regulations The Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995,
as amended
SEBI FPI Regulations The Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014, as
amended
SEBI FVCI Regulations The Securities and Exchange Board of India (Foreign Venture Capital Investors) Regulations,
2000, as amended
SEBI ICDR Regulations The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2009, as amended
SEBI Takeover Regulations The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011, as amended
SEBI VCF Regulations The Securities and Exchange Board of India (Venture Capital Fund) Regulations, 1996, as
amended
Securities Act U.S. Securities Act, 1933, as amended
SEZ Special Economic Zone
SICA The Sick Industrial Companies (Special Provisions) Act, 1985, as amended
SIPCOT State Industries Promotion Corporation of Tamil Nadu
Sq. Ft. or sq. ft. Square feet
Stock Exchanges The BSE and the NSE
Supreme Court The Supreme Court of India
TAN Tax Deduction Account Number
TDS Tax Deducted at Source
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Term Description

U.S. GAAP Generally Accepted Accounting Principles in the United States of America
VAT Value added tax
VCFs Venture capital funds as defined in and registered with the SEBI under the SEBI VCF
Regulations or the SEBI AIF Regulations, as the case may be

The words and expressions used but not defined herein will have the meanings assigned to such terms under the
SEBI ICDR Regulations, the Companies Act, the SCRA, the Depositories Act and the rules and regulations
made thereunder.

Notwithstanding the foregoing, terms in the sections “Statement of Tax Benefits”, “Regulations and Policies”,
“History and Certain Corporate Matters”, “Financial Statements”, “Outstanding Litigation and Material
Developments” and “Main Provisions of the Articles of Association” on pages 93, 140, 144, 175, 324 and 408,
respectively, will have the meanings given to such terms in these respective sections.

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