Footwear maker Khadim In­dia’s shares de­cline on mar­ket de­but


Shares of Khadim In­dia made a weak stock mar­ket de­but on Tues­day. The footwear re­tailer ended 8.2% lower at Rs688.50 per share, af­ter list­ing on the stock ex­changes at Rs727, a 3.07% dis­count from its is­sue price of Rs750 apiece.

The Rs543 crore-ini­tial pub­lic of­fer­ing (IPO), which was sub­scribed 1.90 times dur­ing the share sale from 2-6 Novem­ber, had fixed a price band at Rs745-750.

Ahead of IPO, an­a­lysts said the is­sue was fairly priced. Ac­cord­ing to ICICI Se­cu­ri­ties Ltd, at the higher end of the price brand of Rs750, the stock is val­ued at 2.2 times mar­ket cap­i­tal­iza­tion to sales and price to earn­ings of 43.8 times on FY17 num­bers which is rea­son­ably val­ued, com­pared with peers. Moti­lal Oswal Se­cu­ri­ties said the is­sue was priced at dis­count com­pared with val­u­a­tions of peers Bata In­dia Ltd, Re­laxo Footwears Ltd and Lib­erty Shoes Ltd. Net pro­ceeds from the is­sue will be used for sched­uled pre­pay­ment or sched­uled re­pay­ment of term loans and work­ing cap­i­tal.

The firm op­er­ates through two ver­ti­cals, re­tail and dis­tri­bu­tion. It op­er­ates re­tail stores un­der the ‘Khadim’s’ brand with a ma­jor pres­ence in east In­dia. The re­tail busi­ness op­er­ates through its exclusive re­tail stores ca­ter­ing to con­sumers in large ci­ties.

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