Kalana Ispat made a lacklustre debut on September 26, 2024, listing at ₹45 per share on the NSE SME platform, 32% below its issue price of ₹66. Despite the weak start, the IPO had attracted significant investor interest, being subscribed 60 times. Retail investors led the charge, buying 74.26 times their allotted portion, while non-institutional investors subscribed 40.65 times.
Why did the shares list at a discount?
The grey market had anticipated a lack of premium, with shares trading without any price gains before the listing. The weak listing was not entirely unexpected, as the grey market had already hinted at a discounted debut. Those looking to buy shares online often watch grey market trends for insight into how IPOs might perform on listing day.
IPO details and investor interest
Kalana Ispat's IPO raised ₹32.6 crore through a fresh issue of 49.4 lakh shares. The company plans to use the proceeds for capital expenditure, including the installation of a solar power plant and setting up a rolling mill. Despite its stock debut at a lower price, the overwhelming subscription rate indicates continued interest from investors. This could present an opportunity for those who regularly buy shares online to get involved at a lower entry point.
Is Kalana Ispat a good long-term investment?
While the stock debuted at a discount, it is important to consider the company’s growth prospects. Kalana Ispat specialises in the manufacturing of M.S. Billets and Alloy Steel Billets, operating in a sector with strong demand. For investors who regularly buy shares online, it is crucial to look beyond short-term market fluctuations and assess long-term business fundamentals.
Kalana Ispat’s focus on expanding its operations, including solar power installations and the establishment of a rolling mill, indicates the company’s vision for sustainable growth. As with any stock, understanding the company's core business and plans is essential when deciding to buy shares online.
Invest safely
Kalana Ispat’s weak listing does not necessarily reflect its long-term potential. For those who buy shares online, the stock’s discounted price might offer a favourable entry point into a company with ambitious growth plans. While the immediate reaction was a drop in share price, the strong demand during the IPO suggests that many investors see long-term value in Kalana Ispat’s future.
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