Kalana Ispat Limited has established itself as a trusted name in the steel industry, offering tailored billet solutions designed to meet the specific requirements of its clients. With deep expertise in metallurgy and engineering, Kalana Ispat delivers custom dimensions, alloys, and specialized production processes that cater to unique industry demands. Their focus on sustainability aligns well with the evolving market needs, and the company has a proven track record of solving complex challenges for clients across industries.

Kalana Ispat's latest venture is an Initial Public Offering (IPO) under the Fixed Price Issue category, raising ₹32.59 Crores, comprising a Fresh Issue of 49.38 lakh shares. The subscription period runs from September 19, 2024, to September 23, 2024. The allotment date is expected on or around September 24, 2024, with the listing date set for September 26, 2024 on the NSE SME.

The share price of Kalana Ispat IPO is fixed at ₹66 per equity share, with a minimum lot size of 2,000 shares. Retail investors need to invest a minimum of ₹132,000, while High-Net-Worth Individuals (HNIs) must invest in a minimum of two lots (4,000 shares), requiring ₹264,000.

The IPO's book-running lead manager is Jawa Capital Services Private Limited, and Skyline Financial Services Private Limited is the registrar. Aftertrade Broking Private Limited will act as the sole market maker.

Kalana Ispat IPO Grey Market Premium (GMP) and Subscription Status

The Grey Market Premium (GMP) for Kalana Ispat's IPO is expected to range around ₹20, signaling potential listing gains of approximately 30%. However, it's crucial to understand that Grey Market trading is unregulated and often speculative, offering no guarantee of post-listing performance. The GMP serves only as an educational tool and should not be relied upon for making final investment decisions.

As of 12:47 PM on September 23, 2024, Kalana Ispat's IPO has been subscribed 22.34 times, indicating a strong demand from investors. You can track the Live Subscription Status on the NSE website for real-time updates.

Objectives of Kalana Ispat Limited IPO

The funds raised through the IPO will be allocated towards the following:

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

₹799.45 Lakhs will be invested in setting up a rolling mill at Sanand, Ahmedabad, including the construction of an industrial shed and purchase of machinery.

₹60.88 Lakhs will be reserved for general corporate purposes.

Kalana Ispat IPO Allotment and Listing Guide

The Kalana Ispat IPO allotment is set for September 24, 2024, and investors can check their allotment status on the Skyline Financial Services website. Here's a quick guide:

Go to the IPO allotment status page.

Select Kalana Ispat Limited IPO from the dropdown menu.

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

Submit the details to check your allotment status.

Kalana Ispat Financial Overview

From a financial standpoint, Kalana Ispat has shown steady growth over the years:

Revenue for FY 2024 was ₹7,394.46 Lakhs, compared to ₹8,335.87 Lakhs in FY 2023, ₹5,793.32 Lakhs in FY 2022, and ₹4,298.06 Lakhs in FY 2021.

EBITDA in FY 2024 reached ₹365.23 Lakhs, significantly higher than previous years.

Profit After Tax (PAT) for FY 2024 was ₹236.70 Lakhs, a substantial improvement from ₹50.09 Lakhs in FY 2023.

The pre-issue EPS is ₹3.03, while the post-issue EPS stands at ₹1.81. The pre-issue P/E ratio is 21.78x, and the post-issue P/E ratio is 36.46x. The Return on Capital Employed (ROCE) for FY 2024 is 21.20%, and the Return on Equity (ROE) is 31.12%.

Given these metrics, Kalana Ispat's IPO is considered fairly priced, but analysts advise caution for long-term investments due to its high P/E ratio. The IPO may be better suited for investors seeking short-term listing gains.

Conclusion: Is Kalana Ispat IPO Worth Investing In?

While Kalana Ispat offers tailored billet solutions and demonstrates solid growth in financial performance, the high valuation might deter long-term investors. The IPO is more suitable for risky investors looking to capitalize on listing gains. The company's focus on sustainability and expansion through solar power projects and a new rolling mill further solidifies its market position.

Disclaimer: The above review is for educational purposes only and should not be considered as financial advice. Always consult a professional before making any investment decisions. The stock market involves risk, and it's essential to understand your own risk tolerance before participating.

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