Khadim India Ltd, the countryâs second-largest branded footwear retailer by exclusive stores, listed at a discount on the stock exchanges on Tuesday and then extended the losses.
Shares of Khadim India began trading on the BSE at Rs 727 apiece, down 3% from the initial public offering price of Rs 750, stock-exchange data showed. The stock traded between Rs 740 and Rs 677.30, before ending 8.2% lower at Rs 688.50.
The benchmark BSE Sensex fell 0.3%.
Khadim now commands a market capitalisation of Rs 1,236.90 crore. The Kolkata-based footwear maker had sought a valuation of Rs 1,347.24 crore through the IPO by diluting a 40.3% stake.
In comparison, private equity firm WestBridge Capital-backed Relaxo Footwears Ltd and the India unit of Swiss firm Bata, which are listed on stock exchanges, command a market value of Rs 6,776.55 crore and Rs 10,067.56 crore, respectively.
Sreeleathers Ltd and Liberty shoes have a market capitalisation of Rs 431.03 crore and Rs 427.96 crore, respectively.
Khadim becomes the 31st company to list on the bourses this calendar year. Of the previous 30 firms, 17 have risen on their listing days, stock-exchange data show.
The disappointing start follows an IPO that was subscribed only 1.9 times. The IPO scraped through on the final day of the issue thanks to bids from retail and institutional investors. However, wealthy individuals and corporate investors stayed away.
The IPO of Rs 543.05 crore comprised a fresh issue of shares worth Rs 50 crore and a sale of 6.57 million shares by private equity firm Fairwinds and Siddhartha Roy Burman, chairman and managing director at Khadim India. Fairwinds, which first invested in the company in 2013, sold its entire 33.83% stake.
VCCircle had first reported in April that Khadim was considering an IPO and had hired investment bankers, nearly a decade after it first attempted to go public in 2007.
Khadim competes with homegrown footwear companies and listed peers such as Relaxo Footwears Ltd, Bata India Ltd, Sreeleathers Ltd and Liberty Shoes.