Kalana Ispat shares list at 32% discount over IPO price on NSE SME

Kalana Ispat specializes in the manufacturing of M.S. Billets and Alloy Steel Billets in various grades.

Shares of Kalana Ispat made a weak start on its stock market debut on the bourses on September 26 after listing at Rs 45, a discount of 32 percent over the issue price of Rs 66 per share on the NSE SME platform.

The listing matches grey market estimates where shares were trading without a premium. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.

The Rs 32.6-crore public offer is entirely a fresh issue of 49.4 lakh shares. Over three days, the IPO received robust investor interest after the issue was subscribed 60 times. Retail investors were at the forefront, buying 74.26 times the allotted quota, while non-institutional investors mopped up 40.65 times the portion reserved for them.

Kalana Ispat specializes in the manufacturing of M.S. Billets and Alloy Steel Billets in various grades. The company operates through two primary business segments: the sale of products and the sale of services.

The current equity share issue aims to fund several objectives, including capital expenditure for the installation of a 4 MW DC and 3.5 MW AC ground-mounted solar power plant with a TPSAT structure. Additionally, the company plans to invest in setting up a rolling mill at Survey, Taluka Sanand, Mouje Kala village, Ahmedabad, which will involve the construction of an industrial shed, the purchase of equipment and machinery, and other assets. The proceeds will also be used for general corporate purposes.