Kalana Ispat IPO: Check issue size, price band, GMP and other details

He SME IPO of Test for the rest The subscription opened today and will close on September 23. The company aims to raise nearly Rs 32.6 crore through SMEs. IPO and list the shares on the NSE SME platform. Below are 10 key aspects that investors should know about the public offer before subscribing to the issue.

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.