Kalyani Cast Tech lists at 90% premium to issue price on BSE SME

Kalyan Cast Tech IPO received a strong response from investors and was subscribed over 208 times

Kalyani Cast Tech made a stellar market debut on November 17, listing at a 90 percent premium to the IPO price of Rs 139. The stock opened at Rs 264.1 BSE SME and within minutes jumped 100 percent to Rs 277.3 from the offer price.

Ahead of the listing, the stock was trading at a 68 percent premium to the issue price in the grey market, which is an unofficial ecosystem where shares start trading much before the allotment till the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.

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The issue received a strong response from investors and was subscribed over 208 times. Non-institutional buyers remained at the forefront, buying 439 times, retail investors booked 190 times and qualified institutional buyers picked 66 times their allotted quota.

The price band for the issue, which opened on November 8 and closed on November 10, was fixed at Rs 137-139 a share. The company raised Rs 30.11 crore through the IPO, which was entirely a fresh issue of 21.66 lakh shares. The company plans to use the proceeds to fund working capital requirements and for general corporate purposes.

Gretex Corporate Services was the book-running lead manager, Bigshare Services was the registrar and Gretex Share Broking was the market-maker to the issue.

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Kalyani Cast Tech is in the casting business. It manufactures products such as bearing housing for electrical loco,  MG coupler components, adapters for WDG4 Loco and CI brake blocks. The company specialises in manufacturing cargo containers, including ISO containers and custom containers for parcel cargo, two & three-wheelers, dwarf and cuboid containers.