It will raise Rs 40 crore by issuing equity shares, through preferential allotment to persons and entities belonging to the non-promoter category.

Another Rs 40 crore would be raised by issuing convertible warrants, again through preferential allotment to persons and entities belonging to both the promoter and promoter group, as well as and the non-promoter category. It has also decided to increase its authorised share capital up to Rs 25 crore.

Among the investor who would be issued with the equity shares are BNP Paribas Arbitrage ODI, NAV Capital VCC and Aegis Investment Fund PCC, subject to the approval of shareholders and other authorities concerned.

AKI India had recently entered into joint venture (JV) with UK-based NPS Shoes Ltd -- a 140-year-old footwear company headquartered in Northamptonshire.

The JV’s focus areas include collaboration in manufacturing, dealing in, and exporting leather shoes in India and abroad for mutual benefit. NPS owns the renowned Solovair range of leather shoes, which it intends to introduce in India through this JV. AKI India will hold 25 per cent, while NPS will own a 75 per cent stake in the JV.

Commenting on the crucial corporate and business developments, Asad Kamal Iraqi, Founder and Chief Executive, AKI India Ltd, said: “The company is at an inflection point and the fresh fund raising will take the company to a new level. The journey to value creation also demands sustained focus on opening new avenues. Our partnership with NPS Shoes is a significant step in our journey of the past two decades. India continues to thrive as a consumer lifestyle economy.

"We aim to bring one of the most reputed niche leather shoebrands – Soloviar, to India through our JV with NPS. Besides, this collaboration will enable us to learn, innovate, grow in manufacturing, and tap newer markets together. With this initiative, we are excited to take AKI’s ambitions to the next level."

In 1881, five men living in the village of Wollaston in the UK came together to form a co-operative (a company owned and run by the people working in it) called the Northamptonshire Productive Society (NPS).

Since then, NPS Shoes has been making quality shoes by combining traditional craftsmanship and tooling with the latest technology and materials. NPS brands such as Solovair have become the world’s most sought-after handmade shoe brands.

Christian Castle, Managing Director, NPS Shoes Ltd, said: “We are thrilled to explore new possibilities with AKI India. With the Indian market booming – riding on economic optimism, the demand for high-quality lifestyle products is accelerating. We proudly welcome our flagship brand – Soloviar, to India soon. At the same time, we are happy to collaborate with AKI to tap the mutual strengths and expand our markets of presence globally."

The subscribers to the new company’s memorandum and articles of association will be NPS Shoes Ltd, with its two nominees, and AKI India, with the same number.

Neither NPS nor AKI will transfer the shares allotted by the new company within five years of the date of allotment.

Listed on BSE and NSE, AKI India Ltd was established in 1994 with the technical assistance of the Horse-Riding Group from Germany for designing and manufacturing leather saddler and harness products for Equestrian Sports.

Over the years, the company has expanded its product portfolio to include leather footwear, leather bags, belts, and finished leather.

The company sells its products across India, Europe, Australia, the UAE and South Africa.

It clocked a turnover of Rs 55 crore during FY2023, with a profit after tax of Rs 1.08 crore.

As of June 30, the company’s revenues for Q1FY24 stood at Rs.14.40 crore, while PAT stood at Rs 0.32 crore.