July 24, 2024
New Delhi, India
Kataria Industries made an impressive stock market debut on NSE SME today, with shares opening at ₹182.40, marking a 90% premium over the issue price of ₹96. This strong performance highlights significant investor interest and confidence in the company’s growth prospects.
IPO Details: The initial public offering (IPO) of Kataria Industries opened for subscription on Tuesday, July 16, and closed on Friday, July 19. The price band for the IPO was set between ₹91 and ₹96 per share, with a face value of ₹10. The IPO was highly subscribed, with a subscription status of 393.87 times on the last bidding day.
Company Background: Founded in 2004, Kataria Industries Limited manufactures and supplies a range of products including Low Relaxation Pre-stressed Concrete (LRPC) Strands, Steel Wires, Couplers, Post-tensioning (PT) Anchorage System (Anchor Cone, Anchor Head, and Wedges), and Aluminum Conductors composed of HDPE Single-Wall Corrugated (SWC) Sheathing Ducts. These products are widely used in infrastructure, electricity transmission, distribution lines, atomic reactors, highways, bridges, flyovers, metros, railroads, high-rise buildings, and LNG tanks.
Financial Performance: For the fiscal year 2023-2024, Kataria Industries reported a revenue of ₹339.13 crore. The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBIDTA) stood at ₹22.93 crore, with a net worth of ₹45.49 crore. The Return on Equity (ROE) was 24.53%, and the Return on Capital Employed (ROCE) was 17.40%.
IPO Utilization: The ₹54.58 crore IPO was solely a fresh issue of 5,685,000 equity shares. The net proceeds from the offering will be used for general corporate purposes, capital expenditures for machinery and plant, and debt repayment.
Key Players: Interactive Financial Services Ltd acted as the book running lead manager for the Kataria Industries IPO, while Bigshare Services Pvt Ltd was the registrar.
Grey Market Performance: The grey market premium (GMP) for Kataria Industries IPO was reported to be +105, indicating a trading premium of ₹105 in the grey market. Considering the upper end of the IPO price band and the current grey market premium, the expected listing price was indicated at ₹201 per share, which is 109.38% higher than the IPO price of ₹96.
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