Multibagger Alert: Kataria Industries SME Stock Soars 116% in Just 3 Months After Blockbuster IPO

Kataria Industries, a small-cap stock listed on the NSE SME platform, has turned into a multibagger, delivering huge returns in just three months since its debut. The stock was listed in July 2024 at a 90% premium and has since risen by 116%, reaching ₹207.20 (as of the last close) from its IPO price of ₹96. Compared to its listing price of ₹182, the stock has gained around 14%.

In August 2024, the stock hit a high of ₹247 but later dropped by about 16% from that peak. It also hit a 52-week low of ₹167.65 in the same month.

Performance of Kataria Industries’ IPO

Kataria Industries’ IPO, worth ₹54.58 crore, was open for subscription from July 16 to July 19, 2024, and the stock listed on July 24, 2024. The price range was set between ₹91 and ₹96 per share.

The IPO was massively oversubscribed, receiving bids 393.87 times the shares available. Investors bid for 148.86 crore shares compared to the 37.79 lakh shares on offer. The retail portion was subscribed 274.61 times, non-institutional investors (NII) bid 970.17 times, and the qualified institutional buyer (QIB) category was subscribed 171.04 times.

The minimum application size was 1200 shares, meaning retail investors needed ₹1,15,200 to participate, while high-net-worth individuals (HNIs) had to invest ₹2,30,400 for at least two lots.

The funds raised from the IPO will be used for key business activities, including purchasing new equipment, repaying debt, and general corporate purposes. Interactive Financial Services Ltd was the lead manager for the IPO, and Bigshare Services Pvt Ltd handled the registrar duties. MnM Stock Broking acted as the market maker for the issue.

About Kataria Industries

Founded in 2004, Kataria Industries manufactures and supplies a range of products, including pre-stressed concrete strands, steel wires, and post-tensioning anchorage systems. These products are used in sectors like infrastructure, railways, roads, bridges, high-rise buildings, and power distribution.

The company saw steady growth between March 31, 2023, and March 31, 2024, with revenue up by 2.26% and profit after tax (PAT) jumping by 28.83%.

New Acquisition

Kataria Industries is set to expand its operations by acquiring the Wire Division of Ratlam Wires Private Limited. This acquisition will increase Kataria’s steel wire production capacity by 30,000 metric tonnes per year. The Wire Division focuses on sectors like automobiles, railways, and infrastructure, allowing Kataria to diversify its product range and strengthen its market presence.

The total cost of the acquisition is ₹306 million, with payments being made in stages. The deal will help Kataria enter new markets, including the automobile sector, while boosting its position in industries such as power and infrastructure.