Kalana Ispat IPO Subscribed More Than 55 Times On Final Day; Check GMP

The initial public offering (IPO) of Kalana Ispat Ltd. opened for bidding on September 19 and will close on September 23.

The SME IPO is a fixed price issue of Rs 32.59 crore. The issue comprises an entirely fresh issue of 49.38 lakh shares. The SME issue was subscribed 0.79 times on Day 1 and 4.50 times on Day 2.

Here's all you need to know about the Kalana Ispat IPO.

The IPO has been subscribed 59.92 times as of 6:20 p.m. on Monday.

• Non-institutional buyers: 40.69 times

• Retail investors: 74.54 times

The grey market premium (GMP) of Kalana Ispat Limited IPO is Rs 0 as of 7:32 p.m. on September 23, implying no gains over the IPO price, according to Chittorgarh's unit Investorgain. The estimated listing price based on the GMP is Rs 66 per share.

GMP is not an official price quote for the stock and is based on speculation. 

The IPO price has been fixed at Rs 66 per share. The retail investors can apply for a minimum single lot size of 2,000 shares, amounting to an investment of Rs 1,32,000. For high net worth individuals (HNIs) the minimum investment is 2 lots or 4,000 shares, totaling Rs 2,64,000.

Skyline Financial Services Private Ltd. is the registrar of the Kalana Ispat IPO, while Jawa Capital Services Private Ltd. is the acting as the book running lead manager of the Kalana Ispat IPO. 

The market maker of the IPO for Kalana Ispat IPO is Aftertrade Broking.

As per the company's red herring prospectus, of the 49,38,000 shares offered - 47.49% is reserved for Non-institutional investors, 47.49% for retail investors and 5.02% is reserved as market maker portion.

The allotment status for Kalana Ispat IPO is expected to be finalised on September 24. This will be followed by the initiation of refunds for the non-allottees and credit of shares to the Demat accounts of successful bidders on September 25. Kalana Ispat IPO listing has been tentatively scheduled on September 26. The stock will be listed on the NSE SME platform.

Founded in October 2012, Kalana Ispat Ltd. specialises in manufacturing MS Billets and Alloy Steel Billets of various grades.

The company operates in two primary segments like sale of products and sale of services. Its manufacturing facility boasts an annual production capacity of 38,000 MT.

Kalana Ispat Ltd. plans to use the IPO proceeds to support capital expenditures for the installation of a 4 MW DC and 3.5 MW AC ground-mounted solar power plant under the TPSAT structure.

The funds will also be allocated for establishing a rolling mill at Survey No. 4/1 in Taluka Sanand, Ahmedabad, including construction of an industrial shed and purchasing of equipment and machinery. Additionally, a portion of the funds will be used for general corporate purposes.

Financial Performance

In FY 2023-24, Kalana Ispat Ltd. reported consolidated revenue from operations at Rs 73.94 crore compared to Rs 83.35 crore in the preceding financial year. The company’s net profit stood at Rs 2.36 crore in FY 2023-24 against Rs 50 lakh in the previous financial year.