Kanishk Aluminium IPO listing: Stock lists at 20% discount to offer price, extends fall to hit 5% lower circuit

Kanishk Aluminium IPO listing: Shares of Kanishk Aluminium were off to a tepid start on Wednesday, February 4, as they listed at a massive discount of 20% to their initial public offering (IPO) price of ₹73.

Kanishk Aluminium share price listed at ₹58.40 today, down 20% to its IPO price. Soon after listing, the SME stock faced intense selling pressure and hit the 5% lower price band. Kanishk Aluminium IPO investors are now sitting on losses of 24%. As of 11 am, Kanishk Aluminium shares were locked in the 5% lower price band of ₹55.48.

The listing was sharply below expectations as Kanishk Aluminium IPO GMP was nil ahead of the stock market debut, suggesting a flat start.

Kanishk Aluminium IPO details

The ₹29 crore Kanishk Aluminium IPO was booked 1.04 times as of the final day of the bidding process, with its retail portion subscribed 1.86 times and the non-institutional investor (NII) quota was subscribed just 0.23 times.

The SME IPO was open for bidding from January 28 to January 30. Its allotment was finalised on Monday, February 2.

It was a fixed price issue of ₹73 apiece consisting entirely of a fresh share sale of 0.40 crore shares and no offer-for-sale component. The company plans to use the IPO proceeds for repayment of pre-payment of certain borrowings in part or full, branding and promotion of the company brand and general corporate purposes.

Sun Capital Advisory Services Pvt.Ltd. is the book running lead manager and Kfin Technologies Ltd. is the registrar of the issue. The Market Maker of the company is Sunflower Broking Pvt.Ltd.

The company is a Jodhpur-based manufacturer specialising in a wide range of aluminium extrusion products. It serves multiple sectors, including electronics, automotive, solar, furniture, transport, electrical, and architecture, through its diverse and customised aluminium profile solutions.

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