Kahan Packaging IPO turned out to be a blockbuster in the SME segment as it received the highest ever bids of 690 times the offer size among the IPOs announced so far on September 8, the final day of bidding. In fact, the demand for the issue has been strong since day one.
Investors bought 49.67 crore equity shares in three days starting from September 6 against the offer size of 7.2 lakh shares, resulting in a subscription of 689.92 times, as per the data available on the BSE.
The number of shares bid amounts to Rs 3,973.95 crore against the total IPO fundraising of Rs 5.76 crore.
Retail investors lent the maximum support to the issue of the bulk packaging solutions provider and bought 1,044.8 times their allotted quota, while high networth individuals (HNIs) and other investors bought 14.15 crore shares up 416.2 times their reserved portion.
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Of the total issue of 7.2 lakh shares, the Mumbai-based company has reserved 40,000 equity shares for the market maker and the remaining 6.8 lakh shares were divided among retail investors and HNIs with a 50:50 ratio, i.e. 3.4 lakh shares.
Other Blockbuster IPOs
Earlier Olatech Solutions IPO, launched in August last year, had received the highest ever subscription of 598.82 times, which now pushed to the second number.
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It was followed by Srivari Spices and Foods (450 times), Arham Technologies (450 times), Anlon Technology Solutions (428.62 times), MCON Rasayan India (384.64 times), Quality Foils (364.38 times), Basilic Fly Studio (358.6 times), Baheti Recycling Industries (347.53 times), AMBO Agritec (336.75 times), Krishca Strapping Solutions (336.57 times) and Veekayem Fashion and Apparels (301.47 times), as per the data available with the Chittorgarh.com.
It was a fixed-price IPO with an issue price of Rs 80 per share.
About the company
The polypropylene (PP) & high-density polyethylene (HDPE) woven fabric manufacturer provides customised bulk packaging solutions to business-to-business (B2B) manufacturers. It caters to agro-pesticides, cement, chemical, fertilizer, and food products industries.
Also read: EMS IPO fully subscribed on first day of bidding
Promoted by Prashant & Rohit Dholakia, Kahan Packaging is going to utilise the net issue proceeds (Rs 4.94 crore) mainly for working capital requirements amounting to Rs 4 crore, and the remaining for general corporate purposes.
The company has recorded a net profit of Rs 1.03 crore for the financial year ended March FY23, rising sharply from Rs 0.2 crore in the previous year, and the revenue from operations jumped from Rs 15.88 crore to Rs 17.5 crore during the same period. Nearly 99 percent of revenue derived from Maharashtra in FY23.
Listing Date
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Kahan Packaging will finalise the basis of the allotment of IPO shares by September 13, and the eligible investors will get shares in their demat accounts by September 15. The refunds will be credited to bank accounts of unsuccessful investors by September 14.
The trading in equity shares will commence on the BSE SME, with effect from September 18, as per the IPO schedule.
Hem Securities is the merchant banker to the issue.
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