Kundan Edifice stock lists at 17.5% discount over IPO price on NSE SME

Kundan Edifice IPO opened for subscription on September 12 and closed on September 15.

Kundan Edifice shares made a weak debut on September 26, listing at a 17.58 percent discount on the NSE SME platform. The stock opened at Rs 75 against an IPO price of Rs 91.

At 12 noon, the stock edged up slightly to Rs 78.55, still below the issue price. Earlier today, the grey market price (GMP) of Kundan Edifice was Rs 5, implying a listing price of Rs 96.

Kundan Edifice’s Rs 25.2-crore IPO received a good response from inventors as the issue was subscribed 42.27 times. The public offer opened for subscription on September 12 and closed on September 15.

The company reported a net profit of Rs 5.13 crore for the year ended FY23, jumping 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.

Kundan Edifice will use the proceeds from the IPO mainly for incremental working capital requirements amounting to Rs 15.45 crore and the remaining Rs 6.08 crore for general corporate purposes.

The original design manufacturer (ODM) company 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 multiple application across industries including real estate, railways, automobiles, and decorative lighting.

With more than six years in the EMS industry, Kundan has a history of high customer retention, with over 65 percent of business in the year FY23 coming from its repeat customers.