The initial share sale of KSH International Limited, a prominent manufacturer of magnet winding wire, concluded on a disappointing note. The company's ₹710 crore initial public offering (IPO) remained undersubscribed on the final day of bidding, Thursday, December 18.
IPO Subscription Details and Category-Wise Response
Data from the National Stock Exchange (NSE) revealed that the public issue was subscribed a mere 0.83 times overall. Investors placed bids for approximately 1.12 crore shares against the total 1.36 crore shares on offer. A closer look at the subscription figures shows a varied response across investor categories.
The portion reserved for retail individual investors (RIIs) saw a subscription of 0.86 times. The Non-Institutional Investors (NIIs) category, which includes high-net-worth individuals, witnessed an even weaker demand, getting subscribed only 0.42 times. The sole bright spot was the Qualified Institutional Buyers (QIBs) segment, which was fully subscribed.
Allotment Status and Next Steps for Investors
With the bidding process now closed, the focus shifts to the allotment of shares. The basis of allotment for the KSH International IPO is expected to be finalised on December 19. Successful applicants will have their equity shares credited directly to their demat accounts. Those who do not receive an allocation will get their refunds processed on Monday, December 22.
Investors can check their allotment status online through these portals:
Checking via BSE or NSE Websites
- Visit the BSE allotment status page or the NSE 'Check Trades/Bids' page.
- Select 'Equity' on BSE or 'Equity & SME IPO bid details' on NSE.
- Choose 'KSH International' from the dropdown menu for Issue Name.
- Enter your Permanent Account Number (PAN) and Application Number.
- Click 'Submit' to view your status.
Checking via Registrar MUFG Intime India
- Go to the registrar's web portal.
- Select 'KSH International' from the 'Select Company' dropdown.
- Choose your search method: Application Number, Beneficiary ID, or PAN.
- Enter the required details and the captcha code.
- Click 'Search' to see your allotment status.
Grey Market Premium and IPO Fundamentals
In a sign of muted pre-listing interest, KSH International shares showed no activity in the grey market. The grey market premium (GMP) stood at ₹0 per share, indicating an estimated listing price at the IPO's upper band of ₹384.
The IPO comprised a fresh issue of 1.09 crore shares worth ₹420 crore and an offer-for-sale (OFS) of 76 lakh shares aggregating ₹290 crore. The price band was set between ₹365 and ₹384 per share, with a minimum lot size of 39 shares requiring an investment of at least ₹14,976.
A primary objective of raising funds is to strengthen the company's balance sheet by repaying debt worth ₹225 crore. The remaining proceeds are earmarked for purchasing new machinery, setting up plants, and general corporate purposes.
Company Background and Financial Performance
KSH International is a leading player in the magnet winding wire segment, supplying under its own brand to OEMs in power, renewables, railways, automotive, and industrial sectors. According to its Red Herring Prospectus (RHP), the company is the largest exporter among Indian magnet winding wire manufacturers.
The firm reported a robust financial performance for FY25, with revenue reaching ₹1,928.3 crore, marking a year-on-year growth of 39.45%. This growth significantly outpaces the peer average CAGR of 16.42%. The company operated at a capacity utilisation rate of 81% during the same fiscal year.
Nuvama Wealth Management Ltd. acted as the book-running lead manager for the issue, with MUFG Intime India Pvt. Ltd. serving as the registrar. The shares are scheduled to list on both the BSE and NSE on Tuesday, December 23.
