Kalyani Cast Tech's Small and Medium Enterprises (SME) Initial Public Offering (IPO) was oversubscribed by over 3.5 times on its first day, Today, with the retail segment filled three times. The IPO, priced at ₹137-₹139 per share, opened with the aim to raise ₹30.11 crore ($4.01 million) through a fresh issue of 21.66 lakh shares.
The IPO is managed by Gretex Corporate Services and registered by Bigshare Services Pvt Ltd. Retail investors were allowed to bid for a lot of 1000 shares. The allotment is expected on November 16, and the shares are slated to be listed on BSE SME by November 21.
The company's IPO saw an overall subscription of 1.31 times, with the retail category subscribed 1.67 times and the Non-Institutional Investors (NII) category subscribed 0.45 times on the first day. The grey market premium of ₹50 indicates an expected listing price of ₹189 per share.
The raised funds will cater to Kalyani Cast Tech's working capital needs and other corporate purposes for its diverse clientele across various industries. This move will reduce the firm's stake from full ownership to about 69.83%.
Founded in 2012, Kalyani Cast Tech reported a revenue increase of 28% and profit after tax growth of 585% in FY23, with total revenue of Rs 63 crore compared to Rs 49 crore in FY22, and net profit of Rs 8 crore compared to Rs 1.17 crore in FY22. The company has an in-house manufacturing facility producing items like electrical loco bearing housing, MG coupler components, CI brake blocks, and is also involved in cargo container production.
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