Shares of settled with nearly 8 per cent listing loss, after making a discounted debut on the bourses, reflecting unfavourable investor sentiment towards the issue.
The stock listed at ₹370 on both the and , nearly 4 per cent lower than its price of ₹384. After the weak opening, the shares extended losses and settled at ₹355 and ₹354.55 on the NSE and BSE, respectively.
The listing indicated cautious investor sentiment at debut, according to Shivani Nyati, Head of Wealth at Swastika Investmart Ltd.
| KSH International Ltd. got listed on BSE.
Mr. Kushal Hegde, CMD, Mr. Rajesh Hegde, MD, KSH International Ltd. along with Ms. Kamala K, Chief Regulatory Officer, BSE and other dignitaries rang the to mark the listing.
Mr. Hegde with his team and family…— BSE India (@BSEIndia)
The subdued listing performance reflects mixed investor interest, likely influenced by tepid public subscription, limited grey market premium, and neutral to cautious analyst outlooks on near-term gains.
Short-term investors can exit the position and long-term investors hold the issue with the stop loss of ₹350, Nyati added.
IPO performance
The -based manufacturer of magnet winding wires had launched its ₹710-crore initial public offering (IPO) in the price band of ₹365–384 per share. The issue was a mix of a fresh issue worth ₹420 crore and an offer-for-sale (OFS) of ₹290 crore by promoters.
The IPO received a tepid response from investors, Among investor categories, qualified institutional buyers (QIBs) subscribed their portion 1.06 times, while the retailinvestors segment was subscribed 86 per cent. The non-institutional investors (NIIs) category saw a weaker response, with 42 per cent subscription.
Ahead of the issue, KSH International raised ₹213 crore from anchor investors.
Brokerage firms had earlier flagged the modest subscription levels and limited grey market premium as indicators of a cautious listing, despite the company’s established presence in the magnet winding wires segment.
Use of funds
Proceeds from the fresh issue are proposed to be utilised for repayment of debt, setting up new machinery for expansion at its Supa facility, and installation of new machinery at its Chakan plant in Pune.
A portion of the funds will also go towards setting up a rooftop solar power plant at the Supa facility and for general corporate purposes.
Part of the KSH Group, KSH International commenced operations in 1981.