Steel fiber products manufacturer Kasturi Metal Composite's initial share sale has garnered 16.57 times subscription on January 29, the final day of bidding as all investors showed healthy interest in the offer.
Investors have bid 3.26 crore equity shares against the offer size of 19.7 lakh shares via 5,021 applications during January 27-29. Non-institutional and retail investors were at the forefront to get the issue strongly subscribed, picking up 29.06 times and 16.49 times their allotted quota, respectively.
The part set aside for qualified institutional buyers was subscribed 4 times.
The company will finalise IPO share allotment by January 30, while its shares will be available for trading on the BSE SME effective February 3.
Maharashtra-based Kasturi Metal Composite that manufactures loose & glued hook-end steel fiber, flat crimped steel fiber, and steel wool fiber for industrial applications approached capital markets to raise Rs 17.61 crore via public issue of 27.52 lakh shares at the upper price band.
The price band for the offer was Rs 61-64 per share.
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With three manufacturing units in Amravati (Maharashtra), the company will spend Rs 13.29 crore of IPO proceeds for capital expenditure towards mechanical and electrical works, interior work and procurement of plant and machinery for setting up a new manufacturing facility (unit IV) at same place.
The remainder funds will be used for general corporate purposes.
Hem Securities acted as the book running lead manager for the Kasturi Metal Composite IPO.
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