Shares of footwear company Khadim India dropped over nine per cent during their stock market 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 New India Assurance stock had also declined nine per cent during its trading debut. Market players say back-to-back weak listings could hurt investor sentiment towards primary issuances.During the day, shares 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 shares changing hands on the BSE 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. 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 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.