KSH International IPO: Magnet Winding Conductor-Maker's Rs 710 Crore Issue Opens Today; Check Subscription Status, GMP And Other Details

KSH International IPO: The initial public offering (IPO) of KSH International opened for public subscription on December 16 and will close on December 18.

KSH International, incorporated in 1979, manufactures and exports magnet winding wires and conductors. The company operates under the ‘KSH’ brand and caters to sectors such as power, renewables, railways, automotive, and industrials.

Its product portfolio includes round and rectangular enamelled copper and aluminium magnet winding wires, paper-insulated rectangular copper and aluminium wires, continuously transposed conductors, and bunched paper-insulated copper magnet winding wires.

KSH International IPO Subscription Status: Day 1

As of 12:26 PM, the public issue has been subscribed by 8 per cent.

Non-institutional investors (NIIs) have subscribed the issue by 3 per cent, retail investors have booked 15 per cent, while qualified institutional buyers (QIBs) portion has seen no bids so far, as of 12:24 PM on the first day of bidding.

KSH International IPO Details

Issue Size: KSH international seeks to raise Rs 710 crore from the IPO, which consists of 10.93 million fresh equity shares worth Rs 420 crore and about 7.55 million offer-for-sale shares aggregating to Rs 290 crore.

Price Band, Lot Size, Minimum Investment: The price band has been set at Rs 365 to Rs 384 per share. The lot size is 39 shares, requiring a minimum investment of Rs 14,976 for retail investors, based on the upper end of the price band.

Allotment, Listing Dates: The share allotment is expected to be finalised on December 19, and the stock is scheduled to list on the NSE and BSE tentatively on December 23.

BRLMs, Registrar: Nuvama Wealth Management and ICICI Securities are the book-running lead managers to the issue, while MUFG Intime India is acting as the registrar.

Objectives: Objectives: The company intends to use the Rs 420 crore net proceeds from the IPO primarily for reducing its debt and expanding its capacity. According to its red herring prospectus (RHP), the company will allocate Rs 226 crore for repayment of its borrowings, Rs 87 crore for purchasing and installing new machinery at two of its plants. The company will also invest Rs 8.83 crore in setting up a rooftop solar power plant at its Supa facility. The remaining funds will be utilised for general corporate purposes.

KSH International IPO GMP

KSH International IPO’s GMP, as of 11:56 AM on December 16, stood at nil per share, according to websites that track such trades. Given the current GMP and the upper end of the price band of Rs 384, the expected listing price of KSH International IPO comes at Rs 384 per share, indicating a flat listing.

KSH International IPO Anchor Investors List

KSH International has raised Rs 213 crore from anchor investors ahead of its IPO opening. The magnet winding wire and conductor-maker allocated 5.54 million equity shares at the upper end of the price band of Rs 384 per share.

The largest anchor investor was HDFC Mutual Fund’s Manufacturing Fund, which acquired 1.04 million shares, accounting for 18.78 per cent of the total anchor book, for an investment of about Rs 40 crore.

Following it, Kotak Infrastructure & Economic Reform Fund acquired 14.08 per cent of the total anchor allocation, for an investment of Rs 30 crore, while Kotak Manufacture in India Fund and Kotak Special Opportunities Fund bought 11.74 per cent each, for an investment of about Rs 25 crore each.

Foreign investors included Malabar India Fund and HSBC Global Investment Funds – Asia ex Japan Equity Smaller Companies, which bought 6.10 per cent of anchor allocation each, while Société Générale – ODI was allotted 4.70 per cent.

Five domestic mutual fund houses overall bought nearly 75 per cent of the total anchor allocation, through eight schemes.

KSH International IPO: How Much Profits Promoters Are Set To Make

The offer-for-sale (OFS) in the KSH International IPO will see four promoter family members partially pare their holdings.

Kushal Subbayya Hegde, the largest selling promoter, is offering shares worth Rs 1,528 crore. Based on the upper end of the IPO price band at Rs 384 per share and a weighted average acquisition cost of just Rs 1.36 per share, he is selling roughly 3.98 million shares. This translates into an estimated profit of about Rs 1,522 crore.

Pushpa Kushal Hegde is offloading shares worth Rs 422 crore. With an acquisition cost of Rs 1.51 per share, she is selling close to 1.10 million shares, which implies a potential profit of around Rs 420 crore at the issue price.

Rajesh Kushal Hegde is selling shares worth Rs 475 crore. At a weighted acquisition cost of Rs 1.41 per share, his sale of approximately 1.24 million shares could fetch him gains of nearly Rs 473 crore.

Rohit Kushal Hegde, also selling shares worth Rs 475 crore, acquired his stake at an average cost of Rs 1.35 per share. At the upper price band, his estimated profit from the OFS stands at about Rs 473 crore.