Mumbai: Shares of Khadim India made a weak stock market debut on Tuesday. The footwear retailer ended 8.2% lower at Rs688.50 per share, after listing on the stock exchanges at Rs727, a 3.07% discount from its issue price of Rs750 apiece.

The Rs543 crore-initial public offering (IPO), which was subscribed 1.90 times during the share sale from 2-6 November, had fixed a price band at Rs745-750.

Ahead of IPO, analysts said the issue was fairly priced. According to ICICI Securities Ltd, at the higher end of the price brand of Rs750, the stock is valued at 2.2 times market capitalization to sales and price to earnings of 43.8 times on FY17 numbers which is reasonably valued, compared with peers. Motilal Oswal Securities said the issue was priced at discount compared with valuations of peers Bata India Ltd, Relaxo Footwears Ltd and Liberty Shoes Ltd. Net proceeds from the issue will be used for scheduled prepayment or scheduled repayment of term loans and working capital facilities.

The firm operates through two verticals, retail and distribution. It operates retail stores under the ‘Khadim’s’ brand with a major presence in east India. The retail business operates through its exclusive retail stores catering to consumers in large cities. As of FY17, it has over 829 Khadim’s branded exclusive retail stores.

Its retail business constituted over 70% of its net revenue in Q1FY18 and 73.5% in FY17. In retail business, it promotes nine home-grown sub-brands of Khadim’s which are Pro, Lazard, Softouch, Cleo, British Walker, Turk, Sharon, Bonito and Adrianna. It procured 85% of its products from outsourced vendors with respect to the retail business in FY17.