What Does KSH International IPO GMP Suggests As Subscription Enters Day 2

The initial public offering (IPO) of KSH International was subscribed 0.15 times on the first day of bidding on Dec. 16. The IPO received bids for 19,94,187 shares against 1,36,16,438 shares on offer.

The Qualified Institutional Buyers (QIBs) are yet to book the issue. The Non-Institutional Investors’ (NIIs) category was subscribed 0.06 times, while the retail investors booked their quota 0.27 times on the first day. 

Investors who want to bid for shares in the IPO can check the following details before making an investment decision.

According to InvestorGain, the grey market premium (GMP) for the KSH International IPO stood at Rs 6 as of 8:00 a.m. on December 17. This indicates an estimated listing price of Rs 390 per share at a premium of 1.56% over the upper limit of the price band. 

Note: GMP does not represent official data and is based on speculation.

The KSH International IPO is a book-building issue worth Rs 710 crore. It comprises a fresh issuance of 1.09 crore shares, aggregating to Rs 420 crore, and an offer-for-sale (OFS) of 76 lakh shares, amounting to Rs 290 crore.

To participate in the IPO, retail investors need to bid for at least a single lot size of 39 shares, requiring a minimum investment of Rs 14,976 per application. Small Non-Institutional Investors need to bid for 14 lots, amounting to an investment of Rs 2,09,664. Big Non-Institutional Investors can participate in the IPO by bidding for a minimum of 67 lots. It will lead to an investment of Rs 10,03,392.

The price band for the IPO has been fixed between Rs 365 and Rs 384 per share.

The subscription window is open from Dec. 16 to Dec. 18, with the allotment expected to be finalised on Dec. 19. The company will transfer shares to the Demat accounts of successful bidders on Dec. 22 and refunds for non-allottees will be processed on the same day. 

Shares of the company are tentatively scheduled to be listed on the BSE and NSE on Dec. 23.

Nuvama Wealth Management Ltd. is the book-running lead manager and MUFG Intime India Ltd. is the registrar of the issue.

The company will use proceeds from the IPO to clear debt, buy and set up new machinery and a rooftop solar power plant and for general corporate purposes.

KSH International is the third-largest manufacturer and the largest exporter of magnet winding wires in India. It was established in 1981. 

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.