Kalana Ispat launched its SME IPO for subscription on September 19, which will close on September 23. The company is looking to raise ₹32.59 crore through this offer, with shares priced at ₹66 each, to be listed on the NSE SME platform.
Kalana Ispat IPO Subscription Status
On the first day of bidding, the IPO saw low demand, being subscribed 0.05 times by 12:15 pm. A total of 2.44 lakh shares were bid for out of the 46.90 lakh shares available.
- The retail investor portion was subscribed 0.09 times.
- The non-institutional investor (NII) category was subscribed 0.01 times.
About the IPO
Kalana Ispat’s IPO consists entirely of fresh shares, with no offer-for-sale component. The company plans to use the funds raised for several purposes:
- Installing a 4 MW DC and 3.5 MW AC ground-mounted solar power plant.
- Building a rolling mill at their facility in Ahmedabad, which includes constructing an industrial shed and purchasing necessary equipment and machinery.
- The remaining funds will go toward general corporate purposes, supporting future growth.
Retail investors can apply for a minimum of 2,000 shares, costing ₹1,32,000. High net-worth individuals (HNIs) must apply for at least two lots (4,000 shares), totaling ₹2,64,000.
The final allotment of shares will be decided on September 24, 2024. Refunds for those not allotted shares and the crediting of shares to the Demat accounts of successful investors will happen on September 25, 2024. The shares are expected to be listed on the NSE SME platform on September 26, 2024.
Jawa Capital Services is the book-running lead manager for the IPO, while Skyline Financial Services is the registrar. After Trade Broking will act as the market maker for this issue.
About the Company
Kalana Ispat, incorporated in 2012, manufactures M.S. and Alloy Steel Billets in different grades. The company focuses on both product sales and service sales. Its manufacturing plant is certified with ISO 2830:2012, and it has an annual production capacity of 38,000 metric tons.
Although the company’s revenue dropped by 11% between FY23 and FY24, its profit after tax (PAT) increased by a huge 373% in the same period.
Review
Dilip Davda from Chittorgarh.com stated that while the company showed significant profits in FY24, this sudden growth raises concerns about whether it’s sustainable. He also noted that the future of the company depends on its solar power plant project. Based on the high profits in FY24, the IPO appears to be aggressively priced, and well-informed investors may consider this IPO for long-term investment.
Kalana Ispat IPO GMP
Today, the grey market premium (GMP) for Kalana Ispat’s IPO is ₹11 per share, suggesting an expected listing price of ₹77, which is 16.66% higher than the issue price of ₹66. The GMP increased from ₹10 in the previous session on September 18.
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