IPO Details

Bidding Dates

19 Sep '24 - 23 Sep '24

Minimum Investment

₹1,32,000 / 1 Lot (2,000 Shares)

Price Range

₹66

Maximum Investment

₹1,32,000 / 1 Lot (2,000 Shares)

Retail Discount

To be announced

Issue Size

₹32.59 Cr

Investor category and sub category

Retail Individual Investors (RII)  |   Non-institutional Investors (NII)  |   Qualified Institutional Buyers (QIB)  |   Eligible employees  |  

IPO Dates

Important dates with respect to IPO allotment and listing

Opening Date

Sep 19, 2024

Closing Date

Sep 23, 2024

Basis of Allotment

Sep 24, 2024

Initiation of Refunds

Sep 25, 2024

Listing Date

Sep 26, 2024

About Kalana Ispat IPO

Kalana Ispat Limited is launching its IPO with a fixed price issue of ₹32.59 crores, consisting entirely of a fresh issue of 49.38 lakh shares. The IPO opens for subscription on September 19, 2024, and will close on September 23, 2024. The allotment is expected to be finalised on Tuesday, September 24, 2024, with the shares scheduled to list on the NSE SME platform on Thursday, September 26, 2024.

The IPO is priced at ₹66 per share, with a minimum lot size of 2,000 shares. Retail investors are required to invest a minimum of ₹132,000, while High Net-Worth Individuals (HNIs) must invest in at least 2 lots, amounting to ₹264,000.

Jawa Capital Services Private Limited is the book-running lead manager for the issue, and Skyline Financial Services Private Ltd serves as the registrar. Aftertrade Broking is the designated market maker for the Kalana Ispat IPO.

Industry Outlook:

  1. The World Steel Association predicts global steel demand will grow by 1.9% in 2024, reaching 1,849.1 million tonnes, following a 1.8% increase in 2023.
  2. In 2022-23, India’s per capita finished steel consumption was 86.7 kg, significantly lower than the global average of 221.8 kg.

Kalana Ispat IPO Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

  1. Capital Expenditure for Installation of 4 MW DC & 3.5 MW AC Ground Mounted Solar Power Plant—TPSAT Structure
  2. Capital expenditure for setting up of rolling mill at Survey No. 4/1 Taluka Sanand, Mouje Kala village, Ahmedabad by the construction of the industrial shed, purchase of equipment/machinery, other assets, etc.
  3. General corporate purpose

About Kalana Ispat Limited

Incorporated in October 2012, Kalana Ispat Limited specialises in the manufacturing of M.S. billets and alloy steel billets across various grades. The company operates in two key segments: the sale of products and the sale of services. Under the Sale of Products segment, Kalana Ispat manufactures and sells M.S. Billets and Alloy Steel Billets directly to customers.

Additionally, the company trades in goods like iron scrap, iron ore, and ingots. The Sale of Services segment focuses on job work for casting M.S. and alloy steel billets, utilising spare capacity for clients who provide the raw materials.

Kalana Ispat’s manufacturing facility is ISO 2830:2012 certified, ensuring adherence to international quality standards, with an annual production capacity of 38,000 MT. The company’s competitive strengths include an innovation-driven business model, consistent profitability, and a dedicated team of experienced promoters and employees. As of September 2024, the company employs 15 staff members and engages temporary manpower as needed to meet production demands.

Peer Details

The companies considered by Kalana Ispat as its peers include:

  1. Supershakti Metalinks Limited
  2. Incredible Industries Limited
  3. Gallantt Ispat Limited

How to Check the Allotment Status of the Kalana Ispat IPO?

Steps to check IPO allotment status on Angel One’s app:

  1. Log in to the Angel One app
  2. Go to the IPO Section and then to IPO Orders.
  3. Select the individual IPO that you had applied for and check the allotment status.
  4. Angel One will notify you of your IPO allotment status via push notification and email.

How to apply for Kalana Ispat IPO online?

  1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
  2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
  3. Select IPO: Find and select the Kalana Ispat IPO from the list of open IPOs.
  4. Enter the Lot Size: Specify the number of lots you want to bid for.
  5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
  6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Contact Details of Kalana Ispat IPO

  • Registered office: 504, Ashwamegh Avnue, 5th Floor, Nr Mithakhali Underbridge, Mithakhali, Ahmedabad, Gujarat 380009
  • Phone: +91-81418 48159
  • E-mail: compliance@kalanaispat.com

IPO Financials

Particulars Year ending on March 31, 2024 Year ending on March 31, 2023 Year ending on March 31, 2022
Revenue from Operation (in ₹ lakh) 7,372.64 8,303.86 5,774.88
Profit After Tax (PAT) (in ₹ lakh) 236.70 50.29 15.45
Current Ratio (x) 1.99 1.07 1.03
Net Worth (in ₹ lakh) 1,081.58 441.94 391.65
Total Borrowings (in ₹ lakh) 461.38 861.79 260.57
Return on Equity (%) 31.12% 12.08% 3.57%
Return on Capital Employed (RoCE) (%) 21.20% 5.89% 3.50%
Earnings Per Share (in ₹) 3.03 5.03 1.55

Know before investing

Strengths

6

  1. Experienced management team led by industry veterans with decades’ of experience.

  2. ISO 2830:2012 certification ensures adherence to global quality standards.

  3. Strategically located manufacturing unit for efficient supply chain management.

  4. A dedicated R&D team enhances product quality and innovation capabilities.

  5. Strong customer and supplier relations lead to repeat business orders.

  6. A planned solar plant reduces overhead costs, boosting profitability.

Risks

6

  1. Net cash from operations negative: ₹3.78 lakh in March 2024.

  2. Operating cash flows were negative in three out of four years.

  3. Future cash flows may not be positive, impacting growth.

  4. Significant negative cash flows could hinder business operations.

  5. Uncertain future financial performance due to fluctuating cash flows.

  6. Reliance on financing activities for cash flow stability.

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Kalana Ispat IPO FAQs

What is the Kalana Ispat IPO?

Kalana Ispat IPO is a book built IPO. The IPO will be open from September 19, 2024, to September 23, 2024.

When will Kalana Ispat IPO be allotted?

The Basis of Allotment will happen on Tuesday, September 24, 2024.

When will Kalana Ispat IPO open for subscription?

The IPO subscription window will open on September 19, 2024.

What minimum lot size can retail investors subscribe to?

The minimum lot size retail investors can subscribe to is 1 lot, and the lot size is 2,000 shares.

When will Kalana Ispat Limited list on exchanges?

The listing date for Kalana Ispat is Thursday, September 26, 2024.

What would be the listing gains on the Kalana Ispat IPO?

Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.

How to increase your chances of getting a Kalana Ispat IPO allotment?

  1. Multiple Submissions: Use different Demat accounts to make multiple applications.
  2. Higher Price Band Bidding: Opt for bidding at the cut-off price or higher price band.
  3. Timely Subscription: Ensure you subscribe to the IPO within the specified time frame.

How do I approve the UPI mandate request for Kalana Ispat IPO?

You must complete the payment process by logging in to your UPI handle and approving the payment mandate.

Can I submit more than one application for the public issue of Kalana Ispat Limited using one PAN?

You can submit only one application using your PAN card.

How to read Kalana Ispat Limited's financial statements?

To read Kalana Ispat’s financial statements, download the IPO’s  RHP document.