KSH International shares make weak stock market debut, list at 4% discount to IPO price

KSH International share price made a weak stock market debut on Tuesday, December 23. KSH International shares listed at 4% discount to the IPO price of ₹384.

KSH International share price opened at ₹370 on NSE and BSE.

The listing of KSH International was broadly in line with the grey market expectations. Ahead of listing, the GMP of KSH International IPO was ₹-2, according to Investorgain.

KSH International IPO details

KSH International IPO was open for subscription from December 16 to December 18, was initially pegged at ₹710 crore, comprising a fresh issue of ₹420 crore and an offer for sale of ₹290 crore by existing shareholders.

The issue closed with an overall subscription of about 83%. In a rare post-issue move, the company reduced the OFS portion while leaving the fresh issue size intact.

SEBI has outlined several measures for the company to ensure at least 90% subscription of the issue. These options include trimming the offer-for-sale (OFS) size, extending the subscription window, or revising the price band downward. If none of these steps are implemented, the IPO will have to be withdrawn and all investor funds refunded.

KSH chose the first option, trimming its offer-for-sale component to ₹224.4 crore from the earlier ₹290 crore, while retaining the fresh issue size at ₹420 crore. Following this revision, the IPO subscription surpassed the 90 per cent mark.

The Pune-based firm plans to deploy ₹226 crore from the net fresh issue proceeds toward debt repayment, ₹87 crore for acquiring and installing new machinery to support expansion at the Supa facility and Unit 2 in Chakan, and ₹8.8 crore for setting up a rooftop solar power plant at the Supa facility for power generation.

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. Please consult with an investment advisor before making any investment decisions.