July 18, 2024
New Delhi, India
IPO Watch
Kataria Industries’ Initial Public Offering (IPO) has garnered significant interest, being subscribed over 14 times on the second bidding day. The IPO, which opened on Tuesday, July 16, and closes on Friday, July 19, has seen strong demand across all investor categories.
IPO Details:
- Price Band: ₹91 to ₹96 per share
- Subscription Period: July 16 to July 19
- Listing Date: July 24
- Stock Exchange: NSE SME
- Face Value: ₹10 per share
- Minimum Lot Size: 1,200 shares
Investor Allocation:
- Non-Institutional Investors (NII): 15%
- Retail Investors: 35%
- Qualified Institutional Buyers (QIBs): 50%
Investment Requirements:
- Retail Investors: Minimum of ₹1,15,200 (1,200 shares)
- HNIs: Minimum of ₹2,30,400 (2 lots, 2,400 shares)
Also Read: Zerodha Users Can Now Trade Commodities with Existing Equity Accounts: Nithin Kamath Says…
Company Overview:
Established in 2004, Kataria Industries Limited specializes in the production and distribution of steel wires, LRPC strands, PT anchorage systems, couplers, and aluminum conductors with HDPE single-wall corrugated sheathing ducts. The company caters to a wide range of industries including infrastructure, roads, bridges, railways, and power transmission.
Kataria Industries operates two production facilities in Ratlam, Madhya Pradesh, equipped with comprehensive testing capabilities to ensure quality. The company exports its products to several countries including Brazil, Dubai, Qatar, and Nepal.
Financial Performance:
- Revenue (FY 2023-24): ₹339.13 crore
- Net Worth: ₹45.49 crore
- EBIDTA: ₹22.93 crore
- ROCE: 17.40%
- ROE: 24.53%
Listed Peers:
- Kamdhenu Ltd (P/E of 39.76)
- Incredible Industries Ltd (P/E of 45.19)
- Bharat Wire Ropes Ltd (P/E of 33.88)
IPO Subscription Status:
As of day two, the IPO has been subscribed 14.23 times. The retail portion saw a subscription of 25.14 times, while the NII portion was booked 9.47 times. The company received bids for 5,78,79,600 shares against 40,67,400 shares on offer as of 12:14 IST, according to data from chittorgarh.com. On the first bidding day, the IPO was subscribed 3.68 times.
IPO Details:
The Kataria Industries IPO is worth ₹54.58 crore, with an offer-for-sale of up to 5,685,000 equity shares. The proceeds will be used for debt repayment, capital expenditure for machinery and plant, and general corporate objectives.
Registrar and Lead Manager:
- Registrar: Bigshare Services Pvt Ltd
- Book Running Lead Manager: Interactive Financial Services Ltd
GMP Details: The grey market premium (GMP) for Kataria Industries IPO is +50, indicating that shares are trading at a premium of ₹50 in the grey market. Considering the upper end of the IPO price band and the current GMP, the expected listing price is around ₹146 per share, a 52.08% increase from the IPO price of ₹96.
Bottom Line:
Kataria Industries’ IPO has seen robust demand from investors, reflected in its high subscription rates and premium in the grey market. Investors are optimistic about the company’s growth prospects and its strategic use of IPO proceeds.
Currency Market Update July 18, 2024
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
