January 2, 2024
New Delhi, India
IPO Watch
The Kay Cee Energy & Infra Limited IPO has stirred significant excitement in the market, as it experiences a remarkable level of subscription and a notable Grey Market Premium (GMP).
Subscription Surpasses Expectations:
Investor interest in the IPO has been overwhelming, with the subscription status reaching an astonishing 643.25 times on day 4. Retail investors have shown exceptional enthusiasm, subscribing 910.86 times, underscoring the widespread appeal of the offering.
Pricing Details and Financial Performance:
The IPO is priced between ₹51 to ₹54 per share, with a lot size of 2,000 shares. The company’s robust financial performance, with a 22.33% growth in revenue and a substantial 77.62% increase in Profit After Tax (PAT) between March 2022 and March 2023, adds to the attractiveness of the offering.
Peer Comparison and Valuation:
The Red Herring Prospectus (RHP) provides a valuable benchmark by comparing the company’s Price/Earnings (P/E) ratio with its peers, including Viviana Power Tech Limited and Kec International Limited. This aids investors in assessing the relative valuation.
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Use of Proceeds and Fund Allocation:
The net proceeds from the ₹15.93 crore IPO will be utilized for general corporate purposes and working capital needs, ensuring transparency in fund allocation.
Market Players and Managers:
Giriraj Stock Broking serves as the market maker, while Bigshare Services Pvt Ltd acts as the registrar, and GYR Capital Advisors Private Limited functions as the book running lead manager.
Grey Market Premium (GMP) and Estimated Listing Price:
The GMP of +65 signifies a premium of ₹65 in the grey market, suggesting robust market sentiment. The estimated listing price, considering the upper end of the price band and the GMP, is projected to be ₹119 per share—a substantial 120.37% higher than the IPO price.
Conclusion: The Kay Cee Energy & Infra IPO‘s impressive subscription numbers, coupled with a strong Grey Market Premium, underscore the market’s confidence in the offering. As the IPO period concludes, all eyes will be on the listing, where investors anticipate a robust start for Kay Cee Energy & Infra Limited shares.
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Disclaimer:
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