Shri Kanha Stainless IPO listing: Shares of Shri Kanha Stainless made a weak debut on the NSE SME on Wednesday, December 10, in an otherwise positive market.
Shri Kanha Stainless shares opened at ₹88, down 2.2% from its issue price of ₹90. The SME stock fell further to hit its 5% lower circuit of ₹83.60.
The listing of Shri Kanha Stainless failed to meet market expectations, as the grey market premium (GMP) of the stock indicated it could list at par with the issue price. The last GMP of Shri Kanha Stainless shares was nil.
Shri Kanha Stainless is a manufacturer of precision stainless steel cold-rolled strips, offering a wide range of thin and ultra-thin variants designed to meet diverse industrial requirements.
The company’s products are widely used across various sectors, including the textile, automotive, and chemical industries, as well as in flexible tubes, capillary tubes, clocks, watches, and electrical equipment.
Shri Kanha Stainless IPO details
The SME IPO was a fresh issue of 51,42,400 shares of face value of ₹10 each, to raise ₹46.28 crore.
The company intends to utilise the net proceeds from the issue for the upgradation of its existing manufacturing facility by installing a 1,150 mm 4-Hi AGC reversible rolling machine.
Some parts of the net proceeds will be used for the payment of certain secured and unsecured borrowings, funding of working capital requirements, and for general corporate purposes.
With a price of ₹90 per share, the issue opened for public subscription on Wednesday, December 3, and concluded on Friday, December 5. Share allotment was finalised on Monday, December 8.
Kreo Capital Private Limited was the book-running lead manager, while MAS Services Ltd. was the registrar of the issue.
Shri Kanha Stainless IPO was subscribed to nearly 3 times, with the retail portion booked almost 5 times.