KSH International IPO Listing: Winding Wire Maker’s Shares Make Weak Debut With Over 3% Discount

KSH International IPO Listing Price: KSH International shares listed on the NSE and BSE on December 23. Shares of the winding wire manufacturer made a muted debut on the exchanges. KSH International shares listed with more than 3 per cent discount compared to the issue price.

KSH International shares made their debut at Rs 370 per share with a discount of 3.64 per cent against the issue price of Rs 384 per share. KSH International shares listed at Rs 370 apiece on the BSE with a discount of 3.64 per cent as well.

Retail investors who were allotted a minimum of one lot or 39 shares would have lost at least Rs 546 (Rs 384 - Rs 370 x 39). As many as 12,000 shares of KSH International changed hands on the BSE and the total market capitalisation of the company stood at Rs 2,506.96 crore.

KSH International IPO: Details

The winding wire maker decreased its offer size to Rs 644.4 crore. Originally the winding wire maker sought to raise Rs 710 crore via its public issue. However, the issue size was decreased to comply with the minimum 90 per cent subscription requirement for mainboard public issues.

The Securities Exchange Board of India (Sebi) mandates that IPO-bound companies need to have a 90 per cent overall subscription to proceed with a public issue. If a company’s public issue is not subscribed 90 per cent, issuers are allowed to reduce the offer for sale (OFS) size or extend the subscription period or lower the price band.

KSH International reduced its issue size to Rs 224.4 crore from Rs 290 crore earlier, while the fresh issue portion of the public issue remained unchanged at Rs 420 crore.

The minimum lot size for application for retail investors was fixed at 1 lot comprising 39 shares, which aggregated to an investment of Rs 14,976. KSH International IPO saw weak demand in its three-day subscription window. KSH International IPO was subscribed 83 per cent across categories. As many as 11.23 million shares of KSH International were bid for against the 13.61 million shares offered for subscription.

In the three-day bidding window, qualified institutional buyers and retail individual investors booked their quota 1.06 times and 86 per cent respectively. Non-institutional investors booked their quota in KSH International IPO 42 per cent.

KSH International IPO: Objective

KSH International plans to use the funds generated via the public issue for repayment of the company’s borrowings and the purchase and setup of new machinery. The proceeds will also be used for the purchase and setup of a rooftop solar power plant. The winding wire maker will also use the funds for general corporate purposes.

KSH International: Business Model

KSH International manufactures magnet winding wires. The products made by the company are sold via a B2B (Business-to-Business) model, specifically focusing on Original Equipment Manufacturers (OEMs) in various industries. The company’s core products include Continuously Transposed Conductors (CTC), Enamelled Round and Rectangular Wires and Paper-Insulated Conductors.

KSH International: Peers

KSH International has joined its listed peers following its debut, specifically those with a heavy focus on magnet and winding wires such as Precision Wires India, Ram Ratna Wires and Vidya Wires.