Kalana Ispat's NSE SME Debut Sees 32% Discount, Despite IPO Oversubscription
Date
9/26/2024 2:17:25 PM
(MENAFN- KNN India)
New Delhi, Sep 26 (KNN)
Kalana Ispat, a specialised manufacturer of M.S. Billets and Alloy Steel Billets, made its debut on the NSE SME platform on September 26, with a less than Stellar performance.
The company's shares opened at Rs 45, marking a 32 per cent discount from the initial public offering (IPO) price of Rs 66 per share.
The underwhelming start aligns with predictions from the grey market, where Kalana Ispat shares had been trading without a premium.
Despite the lukewarm debut, the company's IPO had garnered significant investor interest during its three-day subscription period, being oversubscribed by 60 times.
Retail investors showed particular enthusiasm, subscribing 74.26 times their allotted quota. Non-institutional investors also demonstrated strong interest, subscribing 40.65 times their reserved portion.
The total offering amounted to Rs 32.6 crore, consisting of a fresh issue of 49.4 lakh shares.
Kalana Ispat operates in two primary business segments: the sale of products and the sale of services. The company plans to use the IPO proceeds for several key initiatives.
These include the installation of a 4 MW DC and 3.5 MW AC ground-mounted solar power plant with a TPSAT structure.
Additionally, Kalana Ispat intends to establish a rolling mill in Ahmedabad, which will involve the construction of an industrial shed, the purchase of equipment and machinery, and the acquisition of other necessary assets. A portion of the funds will also be allocated for general corporate purposes.
This debut marks a significant milestone for Kalana Ispat, although the initial market response suggests a cautious outlook from investors.
The company's future performance will likely depend on its ability to effectively utilise the raised capital and navigate the competitive steel manufacturing landscape.
(KNN Bureau)
MENAFN26092024000155011030ID1108720071
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.