Khaadi IPO Faces SECP Scrutiny Over Rs8 Billion Deal and Financial Disclosures
ISLAMABAD, November 9, 2026: Pakistani fashion retailer Khaadi is facing additional regulatory questions ahead of its proposed initial public offering (IPO) on the Pakistan Stock Exchange (PSX).
According to ProPakistani, the Securities and Exchange Commission of Pakistan (SECP) has reportedly sought further disclosures concerning Khaadi Pakistan Limited’s financial statements, share valuation, business operations and transactions involving its parent company.
The requests could require additional explanations before the proposed listing progresses.
Why Is SECP Seeking More Information From Khaadi?
The report, citing sources familiar with the discussions, identifies several areas requiring clarification.
These include the valuation of Khaadi’s shares, franchise arrangements, intellectual property rights and property revaluation gains.
According to the report, the company’s December 2025 accounts indicate an underlying loss of approximately Rs. 1.5 billion, while property revaluation gains affected reported financial results.
However, earlier reports based on the draft IPO prospectus showed a net profit of approximately Rs. 1.67 billion for 2025.
The distinction between operating performance, accounting adjustments and reported net profit requires careful examination.
What Is the Rs8 Billion Parent Company Transaction?
Another issue concerns Khaadi’s reported acquisition of brand-related rights from its parent company for approximately Rs. 8 billion.
The report raises questions about the valuation methodology, commercial benefits and terms of the transaction.
Khaadi’s credit rating assessment also acknowledges the acquisition of brand rights from its parent company.
Investors need clear information about how these rights were valued and how the transaction could affect future profitability.
Khaadi IPO Price and Fundraising Plans
According to the company’s previously reported draft prospectus, Khaadi plans to issue shares through a public offering and pre-IPO placement.
| IPO Details | Proposed Figures |
|---|---|
| Total new shares | 500 million |
| Public IPO shares | 250 million |
| Pre-IPO placement | 250 million |
| Public offer price range | Rs. 12.40–18 per share |
| Potential combined fundraising | Rs. 6.2–8.3 billion |
These figures remain subject to the final approved offering documents.
What Are the Concerns for Investors?
The reported disclosure requests also concern the planned expansion of Khaadi’s Experience Stores and how IPO proceeds will be utilised.
Investors may need more detailed projections for new outlets, expected revenues and safeguards concerning changes in the use of funds.
Minority shareholder protections are another area highlighted in the report.
When Will Khaadi List on PSX?
Khaadi’s final listing date has not been confirmed in the sources reviewed.
The company previously submitted its draft prospectus for public comments, while further regulatory clarification has reportedly been requested.
Prospective investors should review the final approved prospectus, audited financial statements and official PSX announcements before making investment decisions.