Kalana Ispat Limited IPO Overview

The Kalana Ispat Limited IPO is a fixed-price issue worth ₹32.59 crores, offering 49.38 lakh new shares at ₹66 each. It opens for subscription on September 19, 2024, and closes on September 23, 2024, with a tentative listing date on NSE SME set for September 26, 2024.

Retail investors need a minimum investment of ₹132,000 for 2,000 shares, while High-worth individuals (HNIs) must invest ₹264,000 for 4,000 shares. The IPO is managed by Jawa Capital Services Private Limited and Skyline Financial Services Private Ltd is the registrar, with Aftertrade Broking as the market maker.

Refer to Kalana Ispat IPO RHP for detailed information.

Kalana Ispat Limited IPO Important dates

Kalana Ispat IPO opens on September 19, 2024, and closes on September 23, 2024.

IPO Open Date Thursday, September 19, 2024
IPO Close Date Monday, September 23, 2024
Basis of Allotment Tuesday, September 24, 2024
Initiation of Refunds Wednesday, September 25, 2024
The credit of Shares to Demat Wednesday, September 25, 2024
Listing Date Thursday, September 26, 2024
Cut-off time for UPI mandate confirmation 5 PM on September 23, 2024

Kalana Ispat Limited Financial Performance

Kalana Ispat Limited’s revenue decreased by -11% and profit after tax (PAT) rose by 373% between the financial year ending with March 31, 2024 and March 31, 2023.

Period Ended 31 Mar 2024 31 Mar 2023 31 Mar 2022 31 Mar 2021
Assets 188.57 crore 161.75 crore 126.49 crore 133.07 crore
Revenue 739.45 crore 833.59 crore 579.33 crore 429.81 crore
Profit After Tax 23.67 crore 5.01 crore 1.37 crore 1.36 crore
Net Worth 108.16 crore 44.19 crore 39.17 crore 37.62 crore
Reserves and Surplus 27.15 crore 33.97 crore 28.96 crore 27.60 crore
Total Borrowing 46.14 crore 86.18 crore 26.06 crore 26.29 crore

Kalana Ispat Limited IPO Key Performance Indicator

The market capitalization of Kalana Ispat IPO is Rs 86.08 Cr.

KPI as of March 31, 2024.

KPI Values
ROE 31.12%
ROCE 21.20%
Debt/Equity 0.43
RoNW 21.88%
P/BV 4.76
PAT Margin (%) 3.21
Pre IPO Post IPO
EPS (Rs)  2.92 1.81
P/E (x)  22.59 36.37

Kalana Ispat Limited IPO Objectives

The objects of the present issue of Equity Shares are:

  1. Capital Expenditure for Installation of 4 MW DC & 3.5 MW AC Ground Mounted Solar Power Plant – TPSAT Structure.
  2. Capital expenditure for setting up of rolling mill at Survey No. 4/1 Taluka Sanand, Mouje Kala village, Ahmedabad by the construction of the industrial shed, purchase of equipment/machinery, other assets, etc, and General Corporate Purpose.

Kalana Ispat Limited IPO Lot Size

Investors can bid for a minimum of 2000 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

Application Lots Shares Amount
Retail (Min) 1 2000 ₹132,000
Retail (Max) 1 2000 ₹132,000
HNI (Min) 2 4,000 ₹264,000

Kalana Ispat Limited IPO Details

IPO Date September 19, 2024 to September 23, 2024
Listing Date [September 26, 2024]
Face Value ₹10 per share
Price ₹66 per share
Lot Size 2000 Shares
Total Issue Size 4,938,000 shares
(aggregating up to ₹32.59 Cr)
Fresh Issue 4,938,000 shares
(aggregating up to ₹32.59 Cr)
Issue Type Fixed Price Issue IPO
Listing At NSE SME
Shareholding pre-issue 8,101,185
Shareholding post issue 13,041,985
Market Maker portion 248,000 shares

Kalana Ispat Limited Company Overview and Services

Founded in October 2012, Kalana Ispat Limited specializes in the production of high-quality M.S. Billets and Alloy Steel Billets across various grades. With a commitment to excellence, the company has established itself as a key player in the steel manufacturing industry.

Business Segments

Kalana Ispat Limited operates through two primary segments:

  • Sale of Products: Offering a diverse range of steel billets.
  • Sale of Services: Providing value-added services to enhance customer satisfaction.

Manufacturing Excellence

The company’s state-of-the-art manufacturing facility is certified to meet international quality standards, including ISO 2830:2012. This certification underscores Kalana Ispat’s dedication to maintaining high-quality production processes.

Annual Production Capacity: 38,000 Metric Tons

Competitive Advantages

Kalana Ispat Limited distinguishes itself in the industry through several key strengths:

  • Innovation-Driven Business Model: Emphasizing continuous improvement and technological advancement.
  • Consistent Profitable Growth: Leveraging a scalable business model to achieve sustained financial success.
  • Proven Track Record: Demonstrated success and reliability in the steel manufacturing sector.
  • Experienced Leadership: Led by seasoned promoters and supported by a skilled workforce.
  • Enhanced Promoter Expertise: A commitment to ongoing professional development and industry knowledge.
  • Strong Customer Relationships: Maintaining cordial and productive interactions with clients.

Workforce and Management

As of September 2024, Kalana Ispat Limited employs three key management personnel (KMPs) and fifteen full-time staff members. Additionally, the company engages temporary manpower from service agencies to meet fluctuating production needs.

Kalana Ispat Limited IPO SWOT Analysis

Strengths:

  1. Established Market Presence: Kalana Ispat has a notable presence in the steel manufacturing industry, with a solid customer base in the construction and infrastructure sectors.
  2. Diverse Product Range: The company offers a wide range of steel products, including bars, rods, and wires, catering to various industries.
  3. Strategic Location of Manufacturing Units: The company’s manufacturing plants are strategically located, ensuring easy access to raw materials and proximity to key markets.
  4. Experienced Management Team: Kalana Ispat’s leadership team brings significant experience in the steel and manufacturing sectors, which aids in effective decision-making and growth strategy.

Weaknesses:

  1. High Dependence on Raw Material Prices: The profitability of the company is sensitive to fluctuations in raw material prices, especially steel, iron ore, and coal.
  2. Geographical Concentration: A significant portion of the company’s operations and sales are concentrated in specific regions, which might limit growth opportunities.
  3. Debt Burden: The company’s financials may show a reliance on debt for expansion and operations, which could pose risks in terms of interest obligations.

Opportunities:

  1. Growing Demand for Steel Products: With rapid urbanization and government infrastructure projects, the demand for steel is expected to increase in the coming years.
  2. Expansion into New Markets: The company has the potential to expand its operations into untapped regions or international markets.
  3. Focus on Green and Sustainable Steel: There is growing interest in eco-friendly steel production. Kalana Ispat could explore opportunities in sustainable manufacturing processes to enhance its brand reputation.

Threats:

  1. Volatility in Commodity Prices: Price volatility of steel and raw materials could impact profit margins, making it challenging to maintain stable growth.
  2. Intense Competition: The steel industry is highly competitive with both domestic and international players, which could limit the company’s market share.
  3. Regulatory and Environmental Challenges: Steel manufacturing is subject to stringent regulations related to environmental impacts. Any changes in these regulations could affect operational costs and require additional investments.

Kalana Ispat Limited IPO GMP Details

Kalana Ispat  SME IPO last GMP is ₹10, last updated Sep 17th 2024. With a price band of 66.00, Kalana Ispat SME IPO’s estimated listing price is ₹76 (cap price + today’s GMP). The expected percentage gain/loss per share is 15.15%.

Stay tuned to learn more about Kalana Ispat SME IPO daily GMP performance and expected listing price.

GMP Date IPO Price GMP Sub2 Sauda Rate Estimated Listing Price Last Updated
21-09-2024 66.00 ₹25  38000 ₹91 (37.88%) 21-Sep-2024
20-09-2024 66.00 ₹25  38000 ₹91 (37.88%) 20-Sep-2024
19-09-2024 Open 66.00 ₹30   45600 ₹96 (45.45%) 19-Sep-2024
18-09-2024 66.00 ₹10  15200 ₹76 (15.15%) 18-Sep-2024
17-09-2024 66.00 ₹10  15200 ₹76 (15.15%) 17-Sep-2024

Kalana Ispat Limited IPO subscription status 

Note that the bidding starts at 10 AM and ends at 5 PM on the days when the public issue is open.

Kalana Ispat Limited IPO Allotment status 

The allotment status of Kalana Ispat IPO is expected to be available on September 24, 2024.

Kalana Ispat’s IPO allotment status is not available at this time. Kalana Ispat IPO – The allotment status will be available once the basis of the allotment is finalized. Please revisit us to check the latest updates for Kalana Ispat Limited’s IPO allotment status.

To check Kalana Ispat’s IPO allotment status, follow the steps below:

  1. Click on the below allotment status check button.
  2. Select Company Name.
  3. Enter your PAN Number, Application Number, or DP Client ID (Anyone).
  4. Click on Search.

On securing the allotment, you will receive the credit of equivalent shares in your Demat account.

If you have any concerns or queries about the allotment status, contact Skyline Financial Services Private Ltd either by phone or email. Investors can call 02228511022 or send an email with all relevant details to ipo@skylinerta.com.

Kalana Ispat Limited Contact Details

Kalana Ispat Limited
504, Ashwamegh Avnue,
5th Floor, Nr Mithakhali Underbridge
Mithakhali, Ahmedabad,-380009
Phone: +91-81418 48159
Email: compliance@kalanaispat.com
Website: https://kalanaispat.com/

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Disclaimer: Investing in Initial Public Offerings (IPOs) involves substantial risk, and financial returns are not guaranteed. The information provided should not be construed as financial or investment advice. Prospective investors are advised to consider their financial situation, investment objectives, and risk tolerance before participating in an IPO. It is recommended to consult with a qualified financial advisor or professional before making any investment decisions. Past performance is not indicative of future results. Investments in IPOs may be subject to market risk, including the potential loss of principal.