Kahan Packaging’s IPO proved to be a success in the SME segment as the company received the highest bid ever, 690 times the bid among the IPOs announced so far. September 8, last day of the auction. In fact, demand for this topic has been strong since day one.
According to data available on BSE, investors bought 49.67 crore shares in three days from September 6 against the offer of 7.2 lakh shares, leading to a subscription of 689, 92 times.
The number of shares on offer stood at Rs 3,973.95 crore as against the total capital raised by the IPO of Rs 5.76 crore.
Retail investors gave full support to the issue of the bulk packaging solutions provider and bought 1,044.8 times their allocated quota, while individuals valued high net worth (HNI) and other investors bought 14.15 crore shares, equivalent to 416.2 times their reserve shares. Of the total issue of 7.2 lakh shares, the Mumbai-based company reserved 40,000 shares for market makers and the remaining 6.8 lakh shares were distributed to retail and HNI investors with a ratio of 50:50, equivalent to 3.4 thousand shares.
Another successful IPO
Olatech Solutions’ previous IPO, launched last August, received its highest ever subscription of 598.82 times, currently ranking second. Followed by Srivari Spices and Foods (450 times), Arham Technologies (450 times), Anlon Technology Solutions (428.62 times), MCON Rasayan India (384.64 times), Quality Foils (364.38 times), Basil Fly Studio (358.6 times) . , Baheti Recycling Industries (347.53 times), AMBO Agritec (336.75 times), Krishca Strapping Solutions (336.57 times) and Veekayem Fashion and Apparels (301.47 times), according to data available on Chittorgarh.com .
It was a fixed price IPO with an issue price of Rs 80 per share.
Back to comity
Manufacturer of woven polypropylene (PP) and high-density polyethylene (HDPE) fabrics providing customized bulk packaging solutions for business-to-business (B2B) manufacturers. It is aimed at the agricultural pesticide, cement, chemical, fertilizer and food industries. Driven by Prashant & Rohit Dholakia, Kahan Packaging will use the issue proceeds (Rs 4.94 crore) primarily for working capital requirements of up to Rs 4 crore and the remaining for other general purpose of the company.
The company reported a net profit of Rs 1.03 crore for the year ended March FY23, up sharply from Rs 0.2 crore the previous year, and operating income rose from Rs 15.88 crore Rs to Rs 17.5 crore during the same period. Nearly 99% of revenue came from Maharashtra in FY23.
Registration date
Kahan Packaging will finalize the basics of allotment of IPO shares by September 13 and eligible investors will receive the shares in their demat accounts by September 15. Refunds will be credited to the bank accounts of unsuccessful investors before September 14.
Trading in the stock will begin on BSE SME from September 18, according to the IPO schedule.
Hem Securities is the investment banker responsible for this matter.
