KSH International makes muted debut, lists at 4% discount; misses GMP

KSH International shares opened at ₹370 on the NSE, a discount of ₹14 or 3.7 per cent from the issue price of ₹384

KSH International listing, KSH International share price: Magnet winding wires manufacturer KSH International has made a muted debut on the Dalal Street amid a subdued market. The company's shares opened at ₹370 on the NSE, a discount of ₹14 or 3.7 per cent from the issue price of ₹384. 

 

On the BSE also, KSH International opened at ₹370, a discount of ₹14 or 3.7 per cent. Post-listing, the stock was trading nearly 3 per cent lower than the listing price. 

 

KSH International's debut was below the grey market estimates. Ahead of the listing, the company's unlisted shares were trading at around ₹382 in the grey markets. This indicated a grey market discount of ₹2 or 0.52 per cent, over the issue price, according to sources tracking unofficial market activity. 

KSH International IPO subscription rate

According to National Stock Exchange (NSE) data, KSH International IPO received a lacklustre response from investors, with overall subscription reaching 83 per cent. Investors placed bids for 11.23 million equity shares against the 13.61 million shares on offer. Qualified Institutional Buyers (QIBs) led the demand, oversubscribing their allotted quota by 1.06 times. The Non-institutional Investors (NIIs) segment was subscribed 42 per cent, while the retail investors portion received 86 per cent bids compared to the shares reserved.

KSH International IPO details

KSH International successfully raised ₹644.45 crore through its initial public offering, which comprised a combination of fresh issue of 10.9 million shares and an offer for sale (OFS) of 5.8 million equity shares. 

 

The IPO was offered in the price band of ₹365 to ₹384 per share, with a minimum application lot of 39 shares. The issue was open for subscription from December 16 to December 18. The allotment of shares was finalised on Friday, December 19. 

 

MUFG Intime India is the registrar for the issue. Nuvama Wealth Management and ICICI Securities are the book-running lead managers.

 

According to the red herring prospectus (RHP), the company plans to utilise ₹226 crore from the net fresh issue proceeds for prepayment or repayment of certain outstanding borrowings. Additionally, ₹102.4 crore will fund capex for purchasing and setting up new machinery at its Supa facility and Unit 2 in Chakan, Pune. Around ₹8.8 crore will be used for a rooftop solar plant at the Supa facility, while the remaining funds, the company said, will be used for general corporate purposes.