KSH International shares list at 4% discount to its IPO price in a weak market debut

KSH International shares list on exchanges. 

KSH International shares listed on exchanges at a discount on Tuesday, following an 83 percent subscription to its Rs 644.4 crore issue.

Shares of KSH International Ltd, a manufacturer of magnet winding wires, were listed at Rs 370 per share on the National Stock Exchange (NSE), a discount of 3.65 percent. Shares of the company had a price band of Rs 365-384 per share.

On the BSE, the shares of the company were listed at Rs 370 apiece, a discount of 3.65 percent. The company's market capitalisation post listing of shares stood at Rs 2,506.96 crore.

Shars of the company were commanding a flat GMP in the unofficial market.

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Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., noted "the subdued listing performance reflects mixed investor interest, likely influenced by tepid public subscription, limited grey market premium, and neutral to cautious analyst outlooks on near-term gains. Short-term investors and traders can exit the position and long-term investors hold the issue with the sl of 350."

The company reduced the size of its IPO to Rs 644.4 crore from Rs 710 crore earlier to achieve the minimum 90 percent subscription threshold, as per the final prospectus filed with the exchanges last week.

SEBI has provided certain options for the company to ensure that the issue is subscribed at least 90 percent. These include reducing the offer-for-sale (OFS) size, extending the issue subscription period, or lowering the price band. If the company fails to execute any of these measures, the IPO must be cancelled and the entire amount refunded to investors.

KSH opted for the first option and reduced its offer-for-sale size to Rs 224.4 crore from Rs 290 crore earlier, while keeping the fresh issue size intact at Rs 420 crore. As a result, the IPO subscription crossed the 90 percent threshold.

KSH International revises IPO size downward to Rs 644 crore

The Pune-based company will utilise Rs 226 crore from the net fresh issue proceeds for repayment of debt, Rs 87 crore for the purchase and installation of new machinery for expansion at the Supa facility and Unit 2 in Chakan, and Rs 8.8 crore for the purchase and installation of a rooftop solar power plant for power generation at the Supa facility.

The remaining funds, up to Rs 76.9 crore, will be used for general corporate purposes.