Khadim India makes tepid debut, lists 3% lower against issue price

Khadim India Share price made a tepid debut on the bourses by listing at Rs 727, 3% lower against its issue price of Rs 750 per share on the BSE. The stock opened at Rs 730 on the National Stock Exchange (NSE).

At 10:01 AM; Khadim India was trading at Rs 728 after hitting an intra-day low of Rs 712 on the NSE and BSE so far. A combined 781,719 shares changed hands on the counter on both the exchanges.

Footwear retailer had raised Rs 543 crore through initial public offer (IPO), which was subscribed 1.90 times. The reserved portion for Qualified Institutional Buyers (QIBs) and Retail Individual Investors (RIIs) was oversubscribed by 2.45 times and 2.33 times, respectively. However, the reserved portion for Non-Institutional Investors or NIIs portion was undersubscribed at 0.18 times, exchange data show.

The net proceeds from the issue are to be utilised towards payment of loans and general corporate purposes.

Khadim India manufactures and retails footwear under its flagship brand ‘Khadim’s’ and nine other home-grown brands. It is the largest footwear player in east India and one of the top three in south India. Now it is planning to expand vigorously in west India and some parts of north India.

Shares of footwear retailer Khadim India made a sluggish debut at the bourses today, falling 3 per cent over the issue price of Rs 750.

The stock listed at Rs 727, down 3 per cent against the issue price on BSE.

On NSE, shares of the company debuted at Rs 730, a loss of 2.66 per cent.

In terms of equity volume, 3.28 lakh shares of the company were traded on BSE and over 19 lakh shares changed hands on NSE during the day.

Khadim India's Rs 543-crore IPO was subscribed 1.90 times during November 2-6. The price band for the offer was fixed at Rs 745-750 per share.

The IPO comprised fresh issue of equity shares aggregating up to Rs 50 crore, besides an offer for sale of up to 65,74,093 shares by existing shareholders.

The net proceeds from the issue are to be utilised towards payment of loans and general corporate purposes.

Axis Capital and IDFC Bank were the book running lead managers to the issue.

Incorporated in 1981, the company entered into retail business in 1993. At the end of June this year, it had 853 retail store outlets in different parts of the country.

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