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.