KSH International IPO Day 2: Issue subscribed 24% so far. Check GMP, subscription status, other details - apply or not?

KSH International IPO, which opened for subscription on Tuesday, December 16, has received a tepid response from investors on the first day of bidding. The mainboard IPO will remain open for subscription till Thursday, December 18.

KSH International garnered ₹213 crore from anchor investors, ahead of the opening. HSBC Global Investment Funds, Société Générale, Kotak Mahindra Life Insurance, Edelweiss Life Insurance, HDFC Mutual Fund, Kotak MF, LIC MF, and Bank of Baroda MF, were the major participants in the anchor book round.

Established in 1981, KSH International operates under the KSH brand and has developed strong market recognition over the past four decades. The company caters to several marquee clients and exports its products to 24 countries worldwide.

KSH International IPO subscription status

On the second day of bidding, KSH International IPO has been subscribed 24% so far, as of 2:30 pm.

The retail segment of the IPO was subscribed 0.43 times, the non-institutional investor (NII) segment 0.11 times, and the qualified institutional buyer (QIB) portion had yet to receive any bids.

KSH International IPO Review

Brokerage firm SBI Securities has given a ‘neutral’ rating to KSH International IPO.

The firm said, “ At upper price band of ₹384, the issue is priced at FY25 P/E and EV/EBITDA multiples of 38.3x and 20.7x respectively, based on post-issue capital. While comparing with its closest peers, the issue seems to be fairly valued coupled with slightly superior margin profile. However, the company plans to repay debt of ~ ₹226 cr from the proceeds of the issue, which is expected to boost profitability by ₹10 cr to ₹13 cr. Thus, we maintain a NEUTRAL view on the company and would like to monitor its performance post listing.”

On the other hand, Angel One has given a positive outlook on the KSH International IPO, noting that the issue appears reasonably valued and supported by strong sector fundamentals. At the upper end of the price band, ₹384, the IPO is priced at a post-issue P/E of 28.68x. The brokerage highlighted the company’s sustained earnings growth, improving return ratios, and leadership position in the magnet winding wires market, along with demand tailwinds from the power, renewables, EV and industrial segments.

“We believe the IPO is fairly priced at a P/E of 28.68x, and with strong earnings traction, improving ratios and favourable industry drivers, the issue offers solid long-term visibility for investors,” Angel One said, assigning a “Subscribe” rating for medium- to long-term investors.

KSH International IPO GMP today

The shares of KSH International IPO are currently trading at a premium of ₹6 in the grey market, as per Investorgain. This means that the GMP of KSH International IPO is +6.

The estimated listing price of KSH International IPO is likely to be ₹390, which is nearly 1.56% higher than the IPO price of ₹384.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

KSH International IPO details

The ₹710 crore KSH International IPO comprises a fresh equity issue of ₹420 crore along with a ₹290 crore offer for sale by the promoters. The price band has been set at ₹365– ₹384 per share, with applications open in lots of 39 shares.

Funds raised through the fresh issue will be used to pare down debt, expand machinery capacity at the Supa and Chakan plants, set up a rooftop solar power facility at Supa, and meet general corporate requirements.

The allotment of KSH International IPO is likely to be finalised on Friday, December 19. Meanwhile, KSH International IPO will list on BSE, NSE with a tentative listing date fixed as December 23.

Nuvama Wealth Management Ltd. is the book running lead manager and MUFG Intime India Pvt.Ltd. is the registrar of the issue.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.