Kalana Ispat IPO: Review, Valuation, Date & GMP

Kalana Ispat IPO-Complete Overview

Kalana Ispat IPO an SME IPO is a fixed price issue of Rs.32.59 crore by Kalana Ispat Ltd. that was established in October 2012. M.S. and alloy steel billets of different grades are the company's principal products. The business of the corporation is segmentable.

The commercialization of goods and services. The production plant has received the necessary certification from worldwide quality management system standards like ISO 2830:2012. The company's production facility can produce 38,000 metric tons annually.

This new SME IPO will open for subscription on 19 September 2024, and its ‘initial public offering’ will end on 23 September 2024. 

Kalana Ispat IPO Overview

The Rs.32.59 crore Kalana Ispat Ltd. IPO consists of an entirely fresh issue of 49.38 lac Shares. This SME IPO date is from September 19-September 23, 2024. The IPO listing date is Thursday, September 26, 2024, on NSE and SME. The Kalana Ispat IPO price is Rs.66 for each Share.The IPO with a Face Value of Rs.10 per Share offers a total issue size of 4,938,000 Shares (aggregating up to Rs.32.59 Cr.).

To open a demat account and apply for the IPO, Click Here.

 

Company Financial

The company's revenue fell by 11% and PAT increased by 373% between the FYs ended  March 31, 2024 and March 31, 2023.

(Amount in lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Product-wise Revenue Breakdown During The Last Three Fiscals 

(Amount in lac)

 

Sales-wise Revenue Breakdown During The Last Three Fiscals 

(Amount in lac)

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Installing a 3.5 MW AC and 4 MW DC ground-mounted solar power plant at the TPSAT structure will cost money.

• The establishment of a rolling mill at Survey No. 4/1 Taluka Sanand, Mouje Kala village, Ahmedabad will require capital expenditures for the building of an industrial shed, the acquisition of machinery and other assets, etc.

• General corporate purposes.

 

Peers of Kalana Ispat Ltd. 

 

Evaluation

Kalana IPO price is Rs.66 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.3.03 from the last year, the resulting P/E ratio is 21.75.

Considering the weighted EPS of Rs.3.41 for the last three years, the P/E ratio is 19.13.Note: The basic EPS of the peers is for the financial year ending 31 March 2024.

The peers' P/E Ratio is computed based on the closing market price of the Share as of 10 September 2024. Except for one peer Supershakti Metaliks Ltd. whose CMP of the Share is as of 6 September 2024.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 36.17x.

 

 

In simple words, the P/E ratio of Kalana Ispat IPO (21.75x), compared with the industry’s average P/E of 36.17x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths 

• A business approach that prioritizes innovation

• A track record of steady, profitable development brought about by a scalable company plan

• A well-established and reputable history

• Knowledgeable marketers and committed staff

• Improving promoters' experience and friendly relationships with their clients.

 

IPO’s Weaknesses

• Numerous labor, workplace-related, safety, health, and environmental rules and regulations apply to businesses. Any non-compliance on its part with these relevant laws and regulations may negatively impact its business operations.

• The company has chosen the HTP-IV tariff for its power needs, which are met by Uttar Gujarat Vij Company Limited. Any modifications to or cancellation of the tariff plans issued by the Gujarat Electricity Regulatory Commissions, as well as any failure to comply with the terms stipulated in the electricity tariffs, could have a detrimental effect on the company's operational and financial performance.

• As stated in the objects of the Issue, the company has not yet placed an order for the installation of the Solar Power Plant or for the gear needed to set up its rolling mill. Any delay in ordering or purchasing the necessary equipment could cause its implementation timetable to be delayed and could also result in an increase in the equipment's price.

• Since the Gujarat region is where the majority of its business operations are located, any unfavorable developments there could have a big influence on its revenue.

• Negative Cash Flows of the company in various activities in the previous fiscal years is a negative point for the company.

  

 

Kalana Ispat IPO GMP Today

Kalana Ispat IPO GMP today is Rs.10 as of 18 September 2024. With a price band of Rs.66, the Kalana Ispat IPO listing price is Rs.76 (expected listing price).

15.15% is the anticipated percentage gain or loss per share.

 

IPO Timetable (Tentative)

The Kalana IPO date is from September 19 to September 23, 2024, with allotment on September 24, refund initiation on September 25, and the Kalana Ispat IPO listing date on September 26, 2024.

 

Kalana Ispat IPO Details 

 

Kalana Ispat IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.1,32,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.2,64,000.

 

Kalana Ispat IPO Reservation

 

 

 

Promoters And Management of Kalana Ispat Ltd.

• Mr. Aftabhusen S Khandwawala

• Mr. Varghese Joseph Pottakerry

• Mr. Gurubaxsing Jamiatsing Bagga

• Mr. Sadik Nannabhai Qureshi.

IPO Lead Managers

• Jawa Capital Services Private Limited.

Dividend Policy

The company has not paid any dividends in the last three fiscals.

Conclusion

In the most recent fiscal years, the company's operational, financing, and investment operations resulted in negative cash flow. The company is currently launching an IPO for the general public to accomplish its goals. 

We hope that the information provided in this blog aids in your education regarding the company's financial performance. Therefore, if you're looking for information on this upcoming IPO, this blog will be quite helpful as it will provide you with trustworthy information about the company's insights, financials, and historical performance. If you found this instructive blog post interesting, you might find our other relevant and helpful posts on our website interesting.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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