Kahan Packaging (NYSE:PKG)'s initial public offering (IPO) opened for subscription on Wednesday and will conclude on Friday, September 8. The company, a leading manufacturer and supplier of polymer-based woven fabrics and bags, is set to list its shares on the BSE SME platform.
The issue size of the IPO is Rs 5.76 crore (Rs 1 crore = $120,873), with each lot comprising 1,600 equity shares worth Rs 128,000 ($1 = Rs 82.7). The company has fixed the price of its shares at Rs 80 in the primary market.
Kahan Packaging is issuing 7,20,000 equity shares through the IPO. Of these shares, 3,40,800 worth Rs 2,72,64,000 have been reserved for Retail Individual Investors (RII). An additional 3,39,200 equity shares valued at Rs 2,71,36,000 have been set aside for non-RII investors including Non-Institutional Investors (NII) and Qualified Institutional Buyers (QIB). For Market Makers (MM), the firm has reserved 40,000 equity shares worth Rs 32,00,000.
HEM Securities Limited is serving as the lead manager while Purva Sharegistry is acting as the Registrar of the issue.
In the financial year 2022-23, Kahan Packaging reported a total revenue of Rs 175.1 million with a Return on Capital Employed (ROCE) at 19.77 percent and Return on Equity (ROE) at 85.28 percent.
Market watchers predict that the shares of Kahan Packaging are expected to get listed on BSE SME platform at a healthy premium of 90% on its listing day Monday, September 18, 2023. This projection is based on an expected listing price for the Kahan Packaging SME IPO of Rs 152 (cap price plus the current Grey Market Premium (GMP) of Rs 72).
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