Khadim India makes dismal debut

The new kid on the block today is Khadim India. The stock, which had issued its shares at Rs.750 in the IPO, got listed on the BSE at Rs.727; a discount of over 3%.

The IPO was subscribed 1.90 times. The QIB portion was subscribed 2.45 times and retail by a good 2.33 times; however the HNIs portion was subscribed only 0.18 times.

In our New Issue Analysis section, we had given it a thumbs up as fundamentally we found it on a solid footing. We had said, “Consumer brand posting profitable growth with deepening distribution reach, strong balance sheet position and healthy pricing get a thumps-up, making the IPO a subscribe.”

In the IPOs of recent times, more than the listing gains, we need to look at the long term sustainability and Khadim is a long term stock.