The initial public offering (IPO) of KSH International, a prominent manufacturer of magnet winding wires, commenced on a subdued note this Tuesday, December 16. The issue, which opened for public subscription, witnessed a tepid response from investors on its inaugural day.
KSH International IPO Subscription Status: A Slow Start
Data from the first day of bidding reveals that the IPO was subscribed a mere 15%. Against the total offer of over 1.36 crore shares, bids were received for only 19,95,084 shares. The subscription breakdown shows a cautious approach across investor categories.
The portion reserved for retail individual investors (RII) saw a subscription of 0.27 times. The non-institutional investor (NII) segment fared even weaker at 0.06 times. Notably, the qualified institutional buyer (QIB) portion did not attract any bids on the first day. The IPO will remain open for subscription until Thursday, December 18.
Key Details of the ₹710 Crore Public Offer
The KSH International IPO is a mix of fresh issuance and an offer for sale by promoters, aggregating to ₹710 crore. This comprises a fresh issue of ₹420 crore and an offer-for-sale (OFS) component worth ₹290 crore.
The price band for the issue has been set at ₹365 to ₹384 per share. Investors can apply in a lot size of 39 shares. Proceeds from the fresh issue are earmarked for several purposes:
- Repayment of debt.
- Expansion of machinery at its Supa and Chakan plants.
- Installation of a rooftop solar power plant at the Supa facility.
- General corporate purposes.
Grey Market Premium and Anchor Investment
The sentiment in the unofficial grey market remains weak for the IPO. According to market observers, the grey market premium (GMP) for KSH International is currently ₹0. This suggests the shares could list at or around the issue price, indicating muted expectations for immediate listing gains.
Ahead of the public opening, the company secured ₹213 crore from anchor investors. A clutch of prominent institutions participated in this anchor book, including HSBC Global Investment Funds, Societe Generale, Kotak Mahindra Life Insurance, Edelweiss Life Insurance, HDFC Mutual Fund, and others. These shares were allotted at the upper end of the price band at ₹384 per share.
About KSH International: A Four-Decade Legacy
Founded in 1981, KSH International has built a strong reputation over four decades, marketing its products under the KSH brand. The company boasts an impressive clientele of 117 customers, including marquee names like Bharat Bijlee, BHEL, Hitachi Energy India, Siemens Energy India, Toshiba T&D Systems, and CG Power. It also exports its products to 24 countries.
Currently, the company operates three manufacturing units—two in Chakan, Pune, and one in Taloja, Raigad. A fourth facility in Supa, Ahilyanagar, is scheduled to commence operations in the financial year 2025-26 (FY26).
The shares of KSH International are expected to make their stock market debut on both the BSE and NSE on December 23. Investors are advised to carefully evaluate the company's fundamentals, market position, and the overall industry outlook before making an investment decision, as IPO responses can be volatile and market conditions may change.
