Kasturi Metal Composite shares experienced a flat opening on the BSE SME platform today, commencing trading at ₹64, which matched the issue price of its recent initial public offering. The stock's debut was marked by significant volatility, as it initially encountered a 5% lower circuit on the Indian stock market. However, demonstrating resilience, the shares subsequently bounced back, reaching the 5% upper circuit limit, highlighting investor interest and market dynamics surrounding this new listing.
IPO Subscription and Financial Performance
The initial public offering of Kasturi Metal Composite had a subscription period that spanned from Tuesday, January 27 to Thursday, January 29. With a face value of ₹10 per share, the IPO was priced in a band between ₹61 and ₹64. Investors could bid for a minimum of 2,000 shares, with multiples available. On the final day of bidding, the Kasturi Metal Composite IPO subscription status reached an impressive 17.75 times, indicating strong demand from both retail and institutional investors.
Financially, Kasturi Metal Composite has demonstrated consistent growth, although its profitability has shown some fluctuations. For the six-month period ending September 2025, the company reported revenues of ₹32.3 crore and a profit after tax of ₹2.47 crore. Looking at the full fiscal year 2025, the revenue climbed to ₹57.2 crore, with a net profit of ₹2.07 crore, reflecting the company's operational scale in the industrial manufacturing sector.
Company Background and Operations
Kasturi Metal Composite Limited is actively engaged in the manufacturing, supplying, and exporting of steel fiber products for diverse industrial applications. The firm specializes in producing Steel Wool Fiber, which is utilized in brake pads and clutches for the automotive industry. Additionally, it trades Durocrete PP Fibers and provides comprehensive concrete flooring solutions through its associated entity, Durafloor Concrete Solution LLP.
The company's product portfolio includes Duraflex and Durabond offerings, catering to critical sectors such as construction, mining, and automotive. These products deliver essential solutions for infrastructure projects including tunnels, roads, and bridges, thereby ensuring enhanced quality and structural integrity in various engineering applications.
Manufacturing Infrastructure
Kasturi Metal Composite operates three manufacturing facilities located in MIDC Amravati. Unit 1 is dedicated to fine wire drawing processes, while Units 2 and 3 focus on the production of steel fibers and mild steel wire. This integrated setup guarantees efficient operations and the consistent delivery of high-quality products to meet industrial demands.
IPO Details and Fund Utilization
The Kasturi Metal Composite IPO, valued at ₹18 crore, is structured entirely as a fresh issue, meaning all shares are newly issued by the company. The capital raised through this offering is primarily earmarked for strategic capital expenditures. Approximately ₹13.3 crore will be allocated towards establishing a new manufacturing plant in Amravati, aimed at expanding production capacity. The remaining funds will be directed towards general corporate purposes, supporting operational growth and business development initiatives.
Notably, there is no offer-for-sale component in this IPO, which implies that all the capital generated will directly benefit the company, rather than providing an exit for existing shareholders. Hem Securities Ltd has been appointed as the book running lead manager for the issue, while Bigshare Services Pvt Ltd acts as the registrar. Hem Finlease Pvt Ltd serves as the designated Market Maker for Kasturi Metal Composite, facilitating liquidity and market-making activities.
Grey Market Premium and Investor Sentiment
According to data from investorgain.com, the Kasturi Metal Composite IPO grey market premium (GMP) was reported at ₹0 on the listing day. This indicates that shares were trading at their issue price of ₹64 in the unofficial grey market, with no premium or discount observed. The grey market premium often reflects investor sentiment and willingness to pay above the official issue price before formal trading begins, making this a neutral indicator for initial market reception.
Disclaimer: The views and recommendations presented in this article are those of individual analysts and should not be construed as financial advice. They do not represent the views of any specific media outlet. Investors are strongly advised to consult with certified financial experts and conduct thorough due diligence before making any investment decisions.
