Flemingo Travel Retail Limited has filed a draft proposal to float the business via an Initial Public Offering (IPO) with India’s securities markets regulator, TRBusiness can confirm.

Sources at Flemingo International report that Mumbai-based Flemingo Travel Retail Private Limited [originally established as DFS India Private Limited] submitted the filing to the Securities and Exchange Board of India (SEBI).

A Draft Red Herring Prospectus seen by TRBusiness confirms an aggregate share offer of INR2,423 crore ($375m) and a further offer of 1,129,500 equity shares for sale by subsidiary Flemingo Duty Free Shop Mumbai Private Limited.

The offer also includes a reservation of up to 150,000 equity shares for eligible employees.

Shares are to be listed on the Bombay Stock Exchange and National Stock Exchange of India, the prospectus discloses.

TRBusiness will bring you further comment from Flemingo International in due course.

INTERNAL RESTRUCTURE

The document also reveals that in connection with the offer, the Dubai-based Group “is in the process of undertaking an internal restructuring”.

It says that subject to the completion of the offer, all entities within the Group will be held, directly or indirectly by Flemingo Travel Retail.

This includes operations in India under Flemingo Dutyfree Shop Private Limited (Flemingo India); in the Sri Lanka and Maldives; and UK, which includes its cruise line travel business under Flemingo International (UK) Limited (Flemingo UK).

The restructure will also cover the following regions:

In Europe: Operations under PHZ Baltona S.A. ‘Baltona’, CDD Holdings B.V ‘Chacalli’ and İris Ekspres Gümrüksüz Satış Mağazaları Ticaret Anonim Şirketi ‘IRIS Ekspres’.

Rest of the World: Middle East and Africa operations in UAE, Lebanon, Uganda, Burundi, Zambia, Morocco, Cape Verde, Mozambique and Rwanda.

As of 30 September, Flemingo operates 119 locations in 26 countries in the Indian subcontinent (India, Sri Lanka and Maldives), US and the Caribbean; Australia (cruise); Europe and the Mediterranean (including Baltona, Chacalii and Turkey); and ROW (Middle East, Africa and St. Marteen).

Flemingo’s operations span duty free and duty paid shops, convenience stores and speciality outlets focusing on fashion, souvenirs, technology, watches & jewellery and F&B outlets.

It boasts a presence in 28 core duty free categories in 11 of the top 20 international airports in India, while it also runs 16 speciality stores at Mumbai and Delhi airports, covering 1,678sq m.

In addition to other stores at Bandaranaike International Airport in Colombo, the Group also possesses a thriving seaport business and is well known for its diplomatic/military duty free and duty paid concessions.

On a pro-forma consolidated basis, total Group revenue totalled IND38,950 ($606m) in 2017.

India and Sri Lanka operations generated revenue of IND13,896 ($216m), registered growth of +35.7% year-on-year [correct as of 30 September].