Kalana Ispat, a company specializing in the manufacturing of M.S. and Alloy Steel Billets, has launched its SME IPO for public subscription. The IPO, which opened on September 19, will remain open until September 23. Kalana Ispat aims to raise ₹32.59 crore through this offering, with shares priced at ₹66 each. Once the subscription period ends, the company plans to list its shares on the NSE SME platform.
So far, the response to the IPO has been relatively weak. The IPO was subscribed just 0.05 times on its opening day. This means that for every share available, only a small fraction of the shares had been bid on. The issue has received bids for 2.44 lakh equity shares, while there are 46.90 lakh shares on offer.
The retail investor segment, which includes individual investors, has seen a subscription rate of 0.09 times, indicating limited interest from this group. The non-institutional investor (NII) category, which includes high-net-worth individuals and other institutional investors, is even less subscribed, with only 0.01 times subscription.
For retail investors looking to participate, the minimum lot size is 2,000 shares, requiring an investment of ₹1,32,000. High-net-worth individuals (HNIs) need to apply for at least two lots, or 4,000 shares, amounting to ₹2,64,000.
Important Dates
The allotment of shares for the IPO is expected to be finalized by September 24, 2024. Investors who are not allotted shares will receive refunds starting from September 25. Shares will be transferred to the Demat accounts of successful applicants on the same day. The shares are scheduled to be listed on the NSE SME platform on September 26, 2024.
Kalana Ispat Limited was established in October 2012. The company focuses on manufacturing M.S. and Alloy Steel Billets in various grades. It operates in two main segments: product sales and service sales. The company’s manufacturing facility is certified by international quality management systems, including ISO 2830:2012, and has an annual production capacity of 38,000 metric tons.
As of today, the grey market premium (GMP) for the Kalana Ispat IPO is ₹11 per share. This suggests an expected listing price of ₹77 per share, representing a premium of 16.66 percent over the issue price of ₹66. This premium has increased from ₹10 in the previous session, indicating some positive sentiment in the grey market.
The grey market is an unofficial trading platform where shares of an IPO are bought and sold before they are officially listed on the stock exchange. The GMP can give investors an idea of how the stock might perform on its debut day.
The Kalana Ispat IPO is still in its early days, and the subscription numbers indicate that interest so far has been limited. Investors should keep an eye on the subscription status and market trends as the IPO period progresses. The upcoming days will be crucial in determining whether the IPO gains traction and how it performs on its listing date. Research the company’s fundamentals, financials, management, valuation, and market conditions before investing in an IPO.
