Khadim India Limited – Poor debut, down over 8%

Shares of Khadim India Limited listed on the bourses and had a poor start to their listed life losing 8.20%. The company had tapped the capital markets with its simultaneous fresh issue for Rs 50 crs and an offer for sale of 65,74,093 shares. The price band was Rs 745-750. The company had allotted 21,72,227 equity shares to 13 anchor investors comprising of 17 entities.

The issue was subscribed 1.90 times overall with QIB portion subscribed 2.44 times, HNI undersubscribed 0.18 times and Retail subscribed 2.33 times. Very clearly the market did not like the valuations and hence the poor response from HNI’s who chose to avoid the issue.

The scrip opened at Rs 727 on the BSE and Rs 730 on the NSE. The high was Rs 740 and Rs 739.65 respectively while the low was Rs 677.30 and Rs 680.00 respectively. The share closed under pressure at Rs 688.50 on the BSE and Rs 688.85 on the NSE.

Exchange Open High Low Close Net Change % Gain/ Loss Wt.Avg Volume Delivery Del %age
BSE 727.00 740.00 677.30 688.50 -61.50 -8.20 711.40 530639 83840 15.80
NSE 730.00 739.65 680.00 688.85 -61.15 -8.15 713.88 2894418 550330 19.01
Total 3425057 634170 18.52

The traded volume was 34.25 lakh shares which as 47.30% of the IPO size of 72.40 lakh shares. The delivery volume was 6.34 lakh shares which was 18.52% of the traded volume and 8.76% of the IPO size. This means that even retail investors who had subscribed their portion have not been able to exit. There is more pressure on the share likely in the coming days. The weighted average for the days trade was Rs 711.40 on the BSE and Rs 713.38 on the NSE. This clearly shown that the share just cracked towards the end of the day.

There was just one trade which was reported in the form of Kiduja India Limited which bought 2 lac shares at a price of Rs 730. The net loss in the scrip on day one was Rs 61.50 or 8.20% on BSE and Rs 61.15 or 8.15% on the NSE. Clearly yet another case of over pricing by the exiting PE investor which has left the company and its shareholders down in the dumps. How long the share would take to come out of this mess is anybody’s guess.

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