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Shares of Khadim India drop 9% on debut

Khadim's Rs 540-crore IPO had garnered less than two times subscription

BS Reporter  |  Mumbai 

Khadim India
Khadim India

of footwear company dropped over nine per cent during their stock debut. The stock on Tuesday closed at Rs 680.5, down 9.3 per cent, or Rs 69.5, over its issue price of Rs 750 a share.

A day earlier, the stock had also declined nine per cent during its trading debut. players say back-to-back weak listings could hurt investor sentiment towards primary issuances. During the day, of Khadim touched an intra-day high of Rs 740 and a low of Rs 677.3, with a total of Rs 244 crore worth of changing hands on the and the National Stock Exchange. Khadim’s Rs 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. reserved for high net worth individual (HNI) had remained unsubscribed. Khadim’s comprised offer for sale by promoters and private equity players worth Rs 493 crore and fresh fundraising worth Rs 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 Rs 1,350 crore, 44 times its 2016-17 earnings.

First Published: Tue, November 14 2017. 18:15 IST