Khadim drops 9% on mar­ket de­but


Shares of footwear com­pany Khadim India dropped over nine per cent dur­ing their stock mar­ket de­but. The stock on Tues­day closed at ~680.5, down 9.3 per cent, or ~69.5, over its is­sue price of ~750 a share. A day ear­lier, the New India As­sur­ance stock had also de­clined nine per cent dur­ing its trad­ing de­but. Mar­ket play­ers say back-to­back weak listings could hurt in­vestor sen­ti­ment to­wards pri­mary is­suances.

Dur­ing the day, shares of Khadim touched an in­tra­day high of ~740 and a low of ~677.3, with a to­tal of ~244 crore worth of shares chang­ing hands on the BSE and the Na­tional Stock Ex­change.

Khadim’s ~540-crore ini­tial pub­lic of­fer­ing (IPO) had gar­nered a sub­scrip­tion of less than two times. The re­tail por­tion was sub­scribed 2.3 times, while the in­sti­tu­tional in­vestor part was sub­scribed 2.5 times. Shares re­served for high net worth in­di­vid­ual (HNI) had re­mained un­sub­scribed.

Khadim’s IPO com­prised of­fer for sale by pro­mot­ers and pri­vate eq­uity play­ers worth ~493 crore and fresh fundrais­ing worth ~50 crore.

Khadim is a footwear brand with a strong pres­ence in the east­ern part of the coun­try. At the top end of the price band, Khadim will be val­ued at ~1,350 crore, 44 times its 2016-17 earn­ings.

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