Kalana Ispat specializes in providing tailored billet solutions, leveraging its expertise in metallurgy and engineering to deliver custom dimensions, alloys, and production processes. Their commitment to sustainability aligns with evolving market demands, making them a key player in the industry.

The Kalana Ispat IPO is a Fixed Price Issue amounting to ₹32.59 crores, consisting of a fresh issue of 49.38 lakh shares priced at ₹66 per share. The subscription period runs from September 19 to September 23, 2024, with allotment expected by September 24 and listing on the NSE SME projected for September 26.

Retail investors must invest a minimum of ₹132,000 for 2,000 shares, while High-Net-Worth Individuals (HNIs) need to buy a minimum of 4,000 shares, costing ₹264,000. Jawa Capital Services Private Limited is the book-running lead manager, and Skyline Financial Services Private Limited serves as the registrar.

As of 12:12 PM on September 20, 2024, the live subscription status shows 2.01 times subscription on the second day. The Grey Market Premium (GMP) is expected to be around ₹20, suggesting potential listing gains, although trading based on GMP is not advised.

Objectives of the IPO

Proceeds from the fresh issue will be utilized for:

₹2,298.75 Lakhs for capital expenditure towards the installation of a 4 MW DC & 3.5 MW AC Ground Mounted Solar Power Plant.

₹799.45 Lakhs for setting up a rolling mill in Ahmedabad, which includes constructing an industrial shed and purchasing equipment.

₹60.88 Lakhs for general corporate purposes.

Financial Performance

Kalana Ispat has shown significant revenue growth:

Revenue in Fiscal Years: ₹7,394.46 Lakhs (2024), ₹8,335.87 Lakhs (2023), ₹5,793.32 Lakhs (2022), ₹4,298.06 Lakhs (2021).

EBITDA: ₹365.23 Lakhs (2024).

Profit After Tax: ₹236.70 Lakhs (2024).

For the Kalana Ispat IPO, the company is issuing shares with a pre-issue EPS of ₹3.03 and a post-issue EPS of ₹1.81. The pre-issue P/E ratio is 21.78x, while the post-issue P/E ratio is 36.46x, compared to the industry P/E ratio of 36.17x. The company's ROCE for FY24 is 21.20%, and ROE is 31.12%, suggesting a fair pricing of the IPO.

Investment Recommendation

While the Grey Market Premium indicates potential listing gains, investors are advised to avoid the Kalana Ispat IPO for long-term investment. However, risk-tolerant investors might consider it for potential listing gains.

The current active IPO is Avi Ansh Textiles Limited, Phoenix Overseas Limited, BikeWo GreenTech Limited, SD Retail Limited, Kalana Ispat.

The Recently Listed IPOs which is available for trading in stock Market are RNFI Services Limited, Sanstar Limited, Sahaj Solar Limited, Macobs Technologies Limited IPO, Kataria Industries Limited IPO, Sati Poly Plast Limited, Aelea Commodities Limited, Prizor Viztech Limited, Three M Paper Boards Limited, BANSAL WIRE INDUSTRIES, EMCURE PHARMACEUTICALS, NEPHRO CARE INDIA, Diensten Tech Limited, Vraj Iron and Steel Limited, Divine Power Energy Limited.

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