Khadim IPO fully subscribed with last day of bidding still on

By: | Updated: November 6, 2017 2:01 PM

The IPO of the Kolkata-based footwear retailer Khadim’s India which opened on Thursday, 2 November got fully subscribed on the last day with the more than 3 hours still left for bidding.

Although Khadim’s has a pan-India presence, the footwear retailer has most of its outlets in the Eastern part of India. (Image: Website)

The IPO (initial public offering) of the Kolkata-based footwear retailer Khadim’s India which opened on Thursday, 2 November got fully subscribed on the last day with the more than 3 hours still left for bidding. As at 1.50 am, the total subscription stood at 1.008 times. Khadim’s India has expected to raise about Rs 543.06 crore at the upper end of the price band. The portion reserved for QIBs (qualified institutional buyers) and NIIs (non-institutional investors) which received fractional bids until the first day saw a decent upmove in counters on the third day. Retail investors quota subscribed 1.5915 with more than three hours still left for bidding. Bids received for QIBs and NIIs category stood at 70.8% and 5.02% respectively. The share sale will remain open for three days bidding process starting 2 November to 6 November.

The public issue of Khadim’s India comprises a fresh issue of equity shares totalling up to Rs 50 crore and an offer for sale of up to 65.74 lakh equity shares. The company has set a price band of Rs 745-750 per equity share of a face value Rs 10 each which implies that floor price is 74.5 times and cap price is 75 times of the face value. The company’s promoter Siddhartha Roy Burman would sell 7.22 lakh equity shares, while Fairwinds Trustees Services Pvt Ltd would offer 58.52 lakh shares, PTI reported. Axis Capital and IDFC Bank are the book running lead managers while Link Intime is the registrar to the issue. Bids can be made for a minimum of 20 equity shares and in multiples of 20 shares thereafter.

Khadim’s India raised Rs 163 crore from anchor investors yesterday after the company’s IPO committee finalised allocation of 21.72 lakh shares to more than 10 anchor investors at a price of Rs 750 per equity share. Franklin India, UTI Mutual Fund, HSBC Global Investment Fund and IDFC Mutual Fund are among the anchor investors, according to a regulatory filing.

The selling shareholders will be entitled to the proceeds of the offer for sale of their respective portion of the equity shares after deducting their portion of the offer related expenses and relevant taxes thereon. The company will not receive any proceeds from the offer for sale. The net proceeds from the fresh issue are proposed to be utilised towards prepayment or scheduled repayment of all or a portion of term loans and working capital facilities availed by the company and for other general corporate purposes.

There are three Listed companies in footwear retail namely Bata, Relaxo and Liberty. Compared to Bata, the largest retailer with 1,900 stores, Khadim’s store count is almost half, out of which about 190 are company-owned stores. Although Khadim’s has a pan-India presence, the footwear retailer has most of its outlets in the Eastern part of India.

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