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

The SME IPO of Kalana Ispat will open for subscription today and close on September 23. The company aims to raise nearly Rs 32.6 crore through the SME IPO and list the shares on NSE SME platform. Here are 10 key things investors need to know about the public offer before subscribing to the issue.

1) Kalana Ispat IPO size

The IPO is completely a fresh equity 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 apiece, 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 with a GMP of Rs 10, indicating a premium of 15% to the issue price.

4) About Kalana Ispat

The company is primarily engaged in manufacturing MS Billets and Alloy Steel Billets of various grades. Its manufacturing facility has been certified in accordance with international standards of quality management systems such as ISO.

5) Industry overview

In 2022, the world crude steel production reached 1885.4 million tonnes (MT). The World Steel Association in its Short-Range Outlook, October 2023 forecasts that steel demand will grow by 1.8% in 2023 and reach 1,814.5 MT after contracting by 3.3% in 2022. In 2024, steel demand will see a further increase of 1.9% to 1,849.1 MT.

6) Kalana Ispat financial performance

For the year ended March 2024, the company clocked total revenues of Rs 73.72 crore and net profit of Rs 2.36 crore.

7) Objects of the offer

The net proceeds from the public offer will be used for capital expenditure for installation of 4 MW DC and 3.5 MW AC ground mounted solar power plant, setting up of rolling mill and the rest for other general corporate purposes.

8) Lead managers and Registrar

Jawa Capital Services is acting as the lead manager to the issue and Skyline Financial Services is the registrar.

9) Issue structure

About 50% of the offer 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. The final allotment will likely be made on September 24. The company’s shares will likely get listed on September 26.