September 26, 2024
New Delhi, India
Kalana Ispat IPO
Kalana Ispat Limited made a subdued debut on the NSE SME on September 26, with its shares opening at ₹45.15 per share, a 31.6% drop from the IPO issue price of ₹66. Despite the weak start, the stock quickly rebounded, reaching the 5% upper price band of ₹47.40 after initially falling to a low of ₹43.
IPO Details and Subscription
Kalana Ispat’s IPO, valued at ₹32.59 crore, offered 49.38 lakh shares and was open for subscription between September 19 and September 23. The share allotment was finalised on September 24.
Use of Proceeds
The company plans to use the IPO proceeds to:
- Install a 4 MW DC and 3.5 MW AC ground-mounted solar power plant with a TPSAT structure.
- Establish a rolling mill in Ahmedabad, involving the construction of an industrial shed and the acquisition of necessary machinery and assets.
- Allocate remaining funds for general corporate purposes, aiding its strategic and operational growth.
Company Overview
Kalana Ispat Limited manufactures M.S. and Alloy Steel Billets across various grades. It operates in two main segments: product sales and service sales. The company’s ISO-certified manufacturing facility has an annual production capacity of 38,000 MT.
Financial Performance
Despite an 11% revenue decline between the financial years ending March 31, 2023, and March 31, 2024, the company reported a remarkable 373% increase in profit after tax (PAT) over the same period.
Though Kalana Ispat’s IPO debut saw an initial drop, the stock showed resilience by recovering to its upper price band. Investors will closely watch the company’s next steps, particularly its planned investments in solar power and rolling mill projects.
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