Shares of Khadim India marked an unexciting debut on the stock market on Tuesday after the footwear retailer concluded its IPO recently last week. The IPO (initial public offering) of the Kolkata-based footwear retailer Khadim’s India which opened on Thursday, 2 November got subscribed 1.9 times on the last day of bidding. Shares of Khadim India opened at Rs 730, down 2.66% from its IPO price of Rs 750 on NSE, while it started 3% lower on BSE at Rs 727. The stock slipped 5% to hit a day’s low of Rs 712.4 on BSE whereas it made a low of Rs 712.5 on NSE. As at 10:20 am, more than 15 lakh shares were traded on both BSE and NSE with about 13 lakh on NSE alone, as per the data available from stock exchanges.
Khadim’s India raised Rs 543.06 crore at the upper end of the price band in a three-day bidding process. The public issue of Khadim’s India comprised 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. The company’s promoter Siddhartha Roy Burman sold 7.22 lakh equity shares, while Fairwinds Trustees Services Pvt Ltd offered 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.
Khadim’s India raised Rs 163 crore from anchor investors 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 got 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 didn’t received 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.