Kataria Industries IPO Subscribed Over 14 Times on Second Day! Check GMP and Subscription Status

Kataria Industries IPO opened for subscription on Tuesday, July 16, and will close on Friday, July 19. The IPO price range is between ₹91 and ₹96 per share, with each share having a face value of ₹10. Investors can purchase a minimum of 1,200 shares, with multiples of that.

In this IPO, 15% of the shares are for non-institutional investors (NIIs), 35% for retail investors, and 50% for qualified institutional buyers (QIBs).

Retail investors need to buy at least 1,200 shares, requiring a minimum investment of ₹1,15,200. High-net-worth individuals (HNIs) must buy at least two lots, or 2,400 shares, for a total investment of ₹2,30,400.

About Kataria Industries

Established in 2004, Kataria Industries Limited makes and sells steel wires, low relaxation pre-stressed concrete (LRPC) strands, post-tensioning (PT) anchorage systems (like anchor cones, anchor heads, and wedges), couplers, and aluminum conductors. Their products are used in various industries, including infrastructure, roads, bridges, flyovers, metros, railways, high-rise buildings, atomic reactors, LNG tanks, and power transmission and distribution lines.

The company has two production facilities in Ratlam, Madhya Pradesh, equipped with the necessary machinery and testing capabilities to ensure quality. Kataria Industries exports products to Brazil, Dubai, Qatar, Nepal, Iran, Oman, and Bahrain, besides serving domestic clients.

According to the red herring prospectus (RHP), the company’s competitors are Kamdhenu Ltd (P/E of 39.76), Incredible Industries Ltd (P/E of 45.19), and Bharat Wire Ropes Ltd (P/E of 33.88).

For the 2023-24 fiscal year, Kataria Industries reported a revenue of ₹339.13 crore, a net value of ₹45.49 crore, and an EBITDA of ₹22.93 crore. Their ROCE is 17.40%, and ROE is 24.53%.

IPO Subscription Status

As of the second day, Kataria Industries’ IPO is subscribed 14.23 times. The retail portion is subscribed 25.14 times, and the NII portion is booked 9.47 times. The company has received bids for 5,78,79,600 shares against 40,67,400 shares on offer, as of 12:14 IST, according to data from chittorgarh.com.

On the first day, the IPO was subscribed 3.68 times.

IPO Details

Kataria Industries aims to raise ₹54.58 crore through this IPO, which is purely an offer-for-sale of up to 5,685,000 equity shares. The proceeds will be used for debt repayment, capital expenditure for machinery and plants, and general corporate purposes.

Bigshare Services Pvt Ltd is the registrar for the IPO, and Interactive Financial Services Ltd is the book running lead manager.

Grey Market Premium

The grey market premium for Kataria Industries’ IPO is +₹50, indicating that shares are trading at a ₹50 premium in the grey market, according to investorgain.com. Considering the upper end of the IPO price band and the current grey market premium, the expected listing price is ₹146 per share, which is 52.08% higher than the IPO price of ₹96.

The grey market premium shows how much more investors are willing to pay than the issue price.