New Delhi. The IPO of KSH International, a company that manufactures magnet winding wires, has been filled by about 20 percent so far. This IPO opened yesterday and today is the second day of bidding for the shares of the issue. According to NSE data, till 11:25 am today, bids for 27,67,713 shares had been received against 1,36,16,438 shares for this issue. The quota reserved for retail investors (RII) has received 37 percent subscription, while the quota for non-institutional investors (NII) has received 9 percent subscription. KSH International IPO will close tomorrow. The movement of IPO shares in the gray market is slow and they are trading at only one and a half percent premium.
The Rs 710 crore KSH International IPO is a mix of fresh issue and offer for sale. Fresh shares worth ₹ 420 crore have been issued in the IPO, while promoters Kushal Subbayya Hegde, Rajesh Kushal Hegde, Pushpa Kushal Hegde and Rohit Kushal Hegde are selling shares worth ₹ 290 crore through OFS. KSH International is part of the KSH Group. The company started in 1981 with the manufacturing of magnet winding wire in Raigarh, Maharashtra. Over the last four decades, the company has expanded its business and started manufacturing various types of specialized magnet winding wires.
KSH International IPO Price Band
The price band of KSH International IPO is ₹365 to ₹384 per share. There are 39 shares in one lot of the issue. Retail investors in the upper price band will have to invest at least Rs 14976 in this IPO. The allotment of shares of KSH International IPO will take place on Friday, December 19. The IPO shares may be listed on BSE and NSE on December 23. Nuvama Wealth Management Limited is the book running lead manager of the IPO.
KSH International IPO GMP
KSH International IPO shares are not getting much attention in the gray market. According to IPOwatch.in, a gray market tracking website, today shares of KSH IPO are trading at a premium of Rs 6 in the unlisted market. It is worth noting here that it is not necessary that the listing of shares of an IPO in the stock market should be according to its gray market price. This is only a guess.
Should one invest money in KSH International IPO?
SBI Securities has given ‘Neutral’ rating to the IPO of KSH International. According to the brokerage, the issue valuations appear balanced compared to its nearest competitors and the company’s margin profile is slightly better. SBI Securities has also said that the company is planning to repay the loan of about ₹ 226 crore from the amount raised from the IPO, which may increase the future profit by ₹ 10 to ₹ 13 crore. Despite this, the brokerage has adopted a cautious stance and maintained a neutral view on the company and has said that it will keep an eye on its performance after listing.
On the other hand, brokerage firm Angel One has shown a more positive attitude towards KSH International IPO. According to Angel One, its valuation has been done at 28.68 times P/E which is reasonable. Given the strong earnings growth, improving financial ratios and favorable industry trends, the brokerage has given it a ‘Subscribe’ rating for medium to long term investors.
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