Kundan Edifice IPO would be the second public issue in the SME segment opening next week on September 12. The fund raising would be Rs 25.22 crore at a price of Rs 91 per share.
The initial public issue of 27.72 lakh equity shares, which will constitute 26.99 percent of the post-issue paid-up equity, will be closing on September 15.
Investors can bid for a minimum of 1,200 equity shares and in multiples of 1,200 shares thereafter. Retail investors can apply for only 1,200 shares worth Rs 1,09,200 as they are allowed to invest up to Rs 2 lakh in the IPO, while high networth individuals (HNIs) can invest a minimum of Rs 2,18,400 for 2,400 shares.
Equity Reservation
The electronics manufacturing services company has reserved 1.41 lakh equity shares worth Rs 1.29 crore for the market maker and the issue less than the market maker portion is the net issue of 26.3 lakh shares worth Rs 23.94 crore.
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Further, half of the 'net issue' is reserved for retail investors and the remaining 50 percent portion for HNIs.
The Mumbai-based company is going to utilise net fresh issue proceeds mainly for incremental working capital requirements amounting to Rs 15.45 crore and the remaining Rs 6.08 crore for general corporate purposes.
Financial performance
The light emitting diode (LED) strip lights manufacturer has recorded a net profit of Rs 5.13 crore for the financial year ended March FY23, growing from Rs 1.67 crore in the previous year. Revenue from operations during the same period jumped to Rs 60.22 crore, from Rs 32.47 crore.
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The EMS company, being the original design manufacturer (ODM), designs, manufactures and supplies products to customers who then further distribute these products under their own brands. LED strip lights, the unconventional form of lighting products, has several application across industries including real estate, railways, automobiles, and decorative lighting,
With more than six years of experience in the EMS industry, it has a history of high customer retention, with over 65 percent of business in the year FY23 coming from its repeat customers.
Listing date
Kundan Edifice in consultation with NSE will finalise the basis of allotment of IPO shares by September 21 and the equity shares will be transferred to demat accounts of eligible investors by September 25. The unsuccessful investors will get their refunds by September 22.
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The trading in equity shares will take place on the NSE Emerge on September 26, as per the IPO schedule.
Fedex Securities is the merchant banker to the issue, and Cameo Corporate Services is the registrar to the offer.
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