KSH International’s opened to a subdued response from investors on Tuesday, with the issue subscribed 15 per cent. The overall demand remained muted across categories, although retail participation was comparatively higher than institutional segments.
Day 1 Subscription status
The QIB portion saw no bids, while demand from non-institutional investors stood at 0.06 times and the retail segment was subscribed 0.27 times by the end of day one.
IPO details
The IPO will remain open for subscription until December 18, 2025.
The Pune-based company is aiming to raise ₹710 crore through the public issue, which is priced in a band of ₹365 to ₹384 per share. Ahead of the issue opening, KSH International raised ₹213 crore from anchor investors, providing some support to the offering despite the slow start in public bidding.
The IPO comprises a fresh issue of equity shares worth ₹420 crore, along with an offer-for-sale of ₹290 crore by the promoters. Funds raised through the fresh issue will primarily be used to reduce debt and support capacity expansion. The company plans to install new machinery at its Supa facility and set up additional equipment at its Chakan unit near Pune. Part of the proceeds will also go towards setting up a rooftop solar power plant at the Supa facility, with the remainder allocated for general corporate purposes.
Brokerage view
Brokerage firms tracking the issue have advised investors to view the IPO with a long-term perspective, citing the company’s expansion plans and focus on improving operational efficiency. However, they also note that near-term listing gains may depend on a pick-up in subscription momentum over the remaining days of the issue.
Shares of KSH International are expected to list on the stock exchanges later in December, subject to the completion of the issue and final allotment process, with the tentative listing likely within a week of the IPO’s closure.