Shares of Kanishk Aluminium India made a subdued debut on the BSE SME platform, ending their first trading session well below the IPO price. The stock was last seen trading at INR 55.48 (USD 0.61), reflecting a 24 per cent decline from the issue price of INR 73 (USD 0.81) per share.
The company’s equity began trading at INR 58.40 (USD 0.65), which itself represented a 20 per cent discount to the offer price. Shortly after listing, the scrip slipped further and was locked at the 5 per cent lower circuit limit relative to the listing price. During the session, the stock moved within a narrow range, touching a high of INR 58.40 ( USD 0.65) and a low of INR 55.48 (USD 0.61), with approximately 19,000 shares traded.
The initial public offering attracted a moderate response, with the issue being subscribed to 1.04 times. It was opened for subscription between January 28 and 30, with a fixed price of INR 73 (USD 0.81) per share.
The public issue consisted entirely of a fresh issue of 40 lakh equity shares. Following the allotment, the promoter and promoter group’s holding was reduced significantly, falling to 70.24 per cent from 99.99 per cent prior to the issue.
According to the company’s disclosures, the funds raised will be used primarily to repay or prepay certain outstanding borrowings, alongside expenditure on branding and promotion for its premium offering, ‘Baari by Kanishk’, and for general corporate requirements.
