Kasturi Metal Composite IPO Day 1: The initial public offering of Kasturi Metal Composite opened for subscription today January 27 and will close on Thursday, January 29. The price band has been set in the range of ₹61-64 per share.
The company aims to raise ₹17.61 crore from this initial public offering (IPO), which is entirely a fresh issue of 28 lakh shares with no offer for sale component.
The IPO allotment is expected on Friday, January 30, 2025, while successful applicants are likely to receive their shares on Monday, February 1. Refunds for non-allottees will also be processed on the same day. The stock is scheduled to list on the with a tentative listing date of Tuesday, February 3, 2025.
The company plans to deploy the net proceeds from the issue primarily towards capital expenditure for establishing a new manufacturing facility at Amravati, Maharashtra, referred to as Proposed Unit IV. This includes funding for mechanical and electrical installations, interior development, and the purchase of plant and machinery, with an estimated outlay of ₹13.29 crore. The remaining funds will be used for general corporate purposes.
The lot size is 2,000 shares, requiring a minimum retail investment of ₹2.56 lakh (4000 share) at the upper end of the price band.
Separately, Kasturi Metal Composite said it has raised ₹5 crore from anchor investors ahead of its initial share sale opening for public subscription on January 23.
Of the total net offer, 47.38% has been allocated to qualified institutional buyers (QIBs), 33.28% to retail investors, and 14.32% to non-institutional investors (NIIs).
Hem Securities Ltd. is the book running lead manager and Bigshare Services Pvt.Ltd. is the registrar of the issue. The Market Maker of the company is Hem Finlease Pvt.Ltd..
Kasturi Metal IPO GMP Today
Investor sentiment toward the IPO is muted, as Kasturi Metal’s grey market premium () is ₹0 on January 27. This suggested that the stock was likely to debut at ₹64, same as IPO price.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Kasturi Metal IPO subscription status
The IPO witnessed muted demand on Day 1. It was 0.35x by 12:@5 pm on Day 1. The retail portion was subscribed 0.14x, and NII portion was not booked yet while, Qualified Institutional Buyers (QIBs) portion received 1x bids.
The company has received bids for 6.46 lakh shares against 18.32 shares on offer.
About Kasturi Metal Composite
Founded in 2005, Kasturi Metal Composite operates in the manufacture, supply and export of steel fibre products catering to a range of industrial applications.
The company produces steel wool fibre used in brake pads and clutches, trades in Durocrete PP fibres, and provides concrete flooring services through its associate, Durafloor Concrete Solution LLP.
Under the Duraflex and Durabond brands, Kasturi Metal Composite offers solutions to sectors such as construction, mining and automotive. Its product portfolio is used across infrastructure projects including tunnels, roads and bridges, with a focus on durability, structural strength and quality.
The company runs three manufacturing facilities at MIDC Amravati. Unit 1 is dedicated to fine wire drawing, while Units 2 and 3 handle the production of steel fibres and mild steel wire, supporting efficient manufacturing and consistent product standards.