Kalana Ispat Limited specializes in tailored billet solutions, leveraging expertise in metallurgy and engineering to meet specific client needs. They offer custom dimensions, alloys, and production processes, aligning their operations with evolving market demands. Their commitment to sustainability, alongside a proven track record, demonstrates their capacity to tackle various industry challenges.

The upcoming IPO is a Fixed Price Issue amounting to ₹32.59 Crores, consisting of a Fresh Issue of 49.38 Lakh Shares. The share price is set at ₹66, with a minimum lot size of 2,000 shares. Retail investors must invest a minimum of ₹132,000, while High-Net-Worth Individuals (HNIs) need to invest ₹264,000 for 2 lots (4,000 shares).

The subscription period for the Kalana Ispat IPO opens on September 19, 2024, and closes on September 23, 2024. Allotment is expected to be finalized by September 24, 2024, with shares listed on the NSE SME on September 26, 2024.

Jawa Capital Services Private Limited serves as the book-running lead manager, and Skyline Financial Services Private Limited is the registrar for the issue. Aftertrade Broking Private Limited acts as the sole market maker for this IPO.

The Grey Market Premium (GMP) for the Kalana Ispat IPO is expected to be around ₹0, reflecting the current financial performance and subscription status. It’s important to note that GMP serves merely as an informational tool, indicating demand and supply in an unregulated market.

As of September 19, 2024, the IPO has shown a subscription status of 0.03 times on its first day. Investors can track their allotment status starting September 24, 2024. To check the allotment status, follow these steps:

Navigate to the IPO allotment status page.

Select Kalana Ispat Limited IPO from the dropdown.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Objectives of the IPO: Proceeds from the Fresh Issue will be utilized for:

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

₹799.45 Lakhs for setting up a rolling mill at Survey No. 4/1 Taluka Sanand, Mouje Kala village, Ahmedabad.

₹60.88 Lakhs for general corporate purposes.

Financial Overview: In FY24, Kalana Ispat recorded revenues of ₹7,394.46 Lakhs, down from ₹8,335.87 Lakhs in FY23. EBITDA figures were ₹365.23 Lakhs for FY24 and ₹143.67 Lakhs for FY23. Profit After Tax for FY24 was ₹236.70 Lakhs, a significant increase from ₹50.09 Lakhs in FY23.

For the IPO, the pre-issue EPS stands at ₹3.03, with a post-issue EPS projected at ₹1.81. The pre-issue P/E ratio is 21.78x, while the post-issue P/E ratio is 36.46x, compared to an industry P/E ratio of 36.17x. The ROCE for FY24 is 21.20%, and the ROE is 31.12%.

Given the company's financial performance and the valuation metrics, along with the GMP indicating 0% potential listing gains, we recommend investors to avoid the Kalana Ispat Limited IPO for both listing gains and long-term investment purposes.

For more information about Praveg Limited and its offerings, please visit their official website.

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