1) IPO proof remaining for you
The IPO is a greenfield sale of 49.38 lakh shares and through the issue, the company plans to raise nearly Rs 33 crore.
2) Kalana Ispat IPO Price Band
The company is offering its shares at Rs 66 each, and investors can bid for 2,000 shares in 1 lot.
3) Kalana Ispat GMP
In the unlisted market, the company’s shares are trading at a GMP of Rs 10, indicating a 15% premium over the issue price.
4) About Kalana Ispat
The company is mainly engaged in the manufacturing of alloy steel billets and MS steel of various grades. Its manufacturing plant has been certified in accordance with international quality management system standards such as ISO.
5) Industry overview
In 2022, global crude steel production reached 1,885.4 million tonnes (MT). The World Steel Association, in its October 2023 Short-Term Outlook, forecasts that demand for steel will grow by 1.8% in 2023 to reach 1,814.5 MT after contracting by 3.3% in 2022. In 2024, steel demand will experience a further increase of 1.9% to 1,849.1 MT.
6) Kalana Ispat’s financial performance
For the year ended March 2024, the company reported total revenue of Rs 73.72 crore and net profit of Rs 2.36 crore.
7) Objects of the offer
The net proceeds from the public offering will be used for capital expenditures for the installation of a 4 MW DC and 3.5 MW AC onshore solar power plant, the installation of a rolling mill and the remainder for other general corporate purposes.
8) Senior Managers and Registrar
Jawa Capital Services is acting as lead manager for the issue and Skyline Financial Services is the registrar.
9) Structure of the issue
Approximately 50% of the offering is reserved for retail investors and the other 50% for non-retail investors.
10) Important dates
The IPO opened on September 19 and will close on September 23. Final allotment will likely take place on September 24. The company’s shares will likely begin trading on September 26.
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