Kalyani Cast Tech SME IPO show: What if your money doubles on the listing day?

You might have heard someone boasting about their investment doubling in a month, six months, or a year, but hearing about it happening in a single day is quite rare. Today, we’ll delve into this article to explore how your money could have potentially doubled if you had owned this company’s stock in your portfolio, although not precisely within a single day because of the IPO timeline.

SME IPOs are creating a buzz these days, despite their characteristics of carrying higher risk and lower liquidity. Additionally, applying for an SME IPO requires a larger investment compared to applying for a mainboard IPO.

Analysing the subscription details of this company during its IPO, on the final day of the IPO window on November 10, 2023, the subscription rate was 208.59 times. The retail category observed a subscription of 190.95 times, while the QIB category reached 66.35 times, and the NII category surged to 439.20 times during the public issue.

The IPO price range was set between Rs 137 and Rs 139, with a face value of Rs 10 per share and a lot size of 1,000 shares. The total size of the company’s IPO was Rs 30.11 crore, and the final share issue price was fixed at Rs 139 each.

Excited to know the company’s name? Well, it’s Kalyani Cast Tech Limited engaged in the casting business and equipped with an in-house machining facility, it made its debut on the Indian stock market today. Surprisingly, it debuted with a stellar premium of 90% at Rs 264.10 per share on the BSE during today’s session, the stock hit an upper circuit limit of 5% and finally concluded at Rs 277.30 per share on the BSE.

What does this signify? For investors who were allotted shares during the final allotment of the IPO, the value of their investment doubled, providing an almost 100% return over its final issue price on the listing day itself. This remarkable increase marks an impressive start for the company’s stock in the market.

Financial Performance:

Business Overview 

Kalyani Cast Tech Ltd operates within the casting business and possesses an in-house machining facility. The company’s manufacturing portfolio comprises items like Bearing housing for electrical loco, MG Coupler Components, Adapters for WDG4 Loco, and CI Brake Blocks, among others.

Specializing in the production of cargo containers, which include ISO containers and personalized containers suitable for various types of cargo such as parcel shipments, two & three-wheelers, dwarf, and cuboid containers. Their clientele spans across various industries including Indian railways, mining, cement, chemicals, fertilizer, and power plants.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.