Kaushalya Logistics lists at 33% premium to IPO price on NSE SME

Kaushalya Logistics IPO: Ahead of the listing, the shares were commanding a 60 percent premium in the grey market

Kaushalya Logistics stock made an impressive market debut, listing at a 33 percent premium to the IPO price on January 8. The stock opened at Rs 100 against the issue price of Rs 75 on the NSE SME platform.

The initial public offering (IPO) was well received and was subscribed 364 times from December 29 to January 3. Retail investors picked 375 times the portion set aside for them, while high net worth individuals (HNIs) bid 849 times the reserved portion.

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The listing, however, fell short of expectation as the stock was commanding a 60 percent premium in the grey market, an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.

The Rs 36.6-crore IPO consisted of a fresh issue of 33.8 lakh shares worth Rs 25.35 crore and an offer-for-sale of 15 lakh shares worth Rs 11.25 crore. The price band for the offer was at Rs 71-75 a share.

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The company plans to use net proceeds to repay debt amounting to Rs 1.71 crore and meet working capital requirements of Rs 17.26 crore. The remaining funds will be used for general corporate purposes.

The company garnered Rs 10 crore through its anchor book from five investors, including Neomile Growth Fund Series, Saint Capital Fund and LC Radiance Fund VCC.

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Kaushalya Logistics is an integrated logistics and clearing and forwarding (C&F) services provider. It operates in three major verticals, one of which is providing logistic support for handling and dealing in the cement for dealers and customers of Dalmia Cement Bharat.

The other vertical is retail/e-commerce business through which it sells televisions refrigerators, washing machines and other such goods. Kaushalya Logistics has also ventured into the commercial real estate sector by owning and renting out commercial shops in Udaipur, Rajasthan.