KSH IPO Day 3: Full Subscription Not Achieved, Rs710 Cr Offer Update

The IPO of KSH International, which started on December 16, is set to be concluded today. Even though people were waiting for it, the subscription was not good at all and the total all paid shares had not been yet reached as the issue was on its last day.

The company's IPO of Rs 710 crore presents a price range from Rs365 to Rs384 per share. Among the total shares of the issue, 1.09 crore shares priced at Rs420 crore are newly issued and are the fresh issue and the promoters are offering 0.76 crore shares valued at Rs290 crore as part of the offer for sale (OFS). Retail investors may apply in lots of 39 shares, which implies an investment of at least Rs14,976 at the upper price limit of the band.

If the IPO surpasses 90% subscription yet not fully subscribed, then all applicants will get the complete allocation. In case the subscription is below 90%, KSH International has three choices: prolong the issue duration, lower the price range, or decreased the OFS part. If none of these works, the IPO has to be scrapped and the money returned to the applicants.

Standing on 10:24 am today, the total IPO was subscribed 0.21 times, the retail tranche at 0.56 times, the NII segment at 0.16 times, and QIBs yet to make any bids. The total number of shares the company got bids for are 40.59 lakhs against 1.29 crore on offer.

Market sentiment is still lukewarm. The grey market premium (GMP) is indicated to be Rs0, implying that the stock could be listed at its upper price band of Rs384. The GMP is an indicator of early investors' affirmation to pay over the issue price before listing, through informal channels.

Before the public offering, KSH International received Rs213 crore from anchor investors. Among the institutions participating in the anchor book were HSBC Global Investment Funds, Societe Generale, Kotak Mahindra Life Insurance, Edelweiss Life Insurance, HDFC Mutual Fund, Kotak Mutual Fund, LIC Mutual Fund, and Bank of Baroda Mutual Fund.

Nuvama Wealth Management Ltd. is the book-running lead manager (BRLM) for the issue while MUFG Intime India Pvt. Ltd. is the registrar.

The allotment is likely to take place on December 19, with shares credited to successful applicants on December 22. Refunds for unsuccessful applicants will also be processed on the same day. The listing of shares is scheduled for December 23, 2025, on both BSE and NSE.

The company plans to use the entire amount raised through the fresh issue for its operational expansion and debt repayment boring. The envisaged activities include a debt cut of around Rs226 crore, upgrading the Supa factory, setting up new equipment at the Chakan unit in Pune, and installing a rooftop solar power system at Supa. A small share of the proceeds will also be allocated for general corporate purposes.

SBI Securities brokerage gives the IPO a 'neutral' rating, supporting it with the upper band P/E of 38.3x and post-issue EV/EBITDA of 20.7x. The company estimated that loan pay-off can boost earnings by Rs10-13 crore. On the other hand, Angel One suggests to medium- to long-term investors to buy, pointing out that the company will continue to grow significantly, will hold the largest market share of magnet winding wire, and will enjoy favorable conditions in the power, renewables, EVs, and industrial sectors.

KSH International has a customer base of 117 clients, among which are included Bharat Bijlee, Virginia Transformer Corporation, BHEL, Georgia Transformer Corporation, Hitachi Energy India, Siemens Energy India, Hind Rectifiers, Toshiba Transmission & Distribution Systems India, CG Power and Industrial Solutions, and Emirates Transformer & Switchgear Ltd.

The IPO allotment scheme comprises 50% for QIBs, a minimum of 35% retail, and 15% for non-institutional investors.

The IPO is going to end today, thus market players will be keeping a look at the levels of subscription very closely. The listing of KSH International on Tuesday will be affected by the interplay of moderate grey market activity, partial retail demand, and the strategic use of proceeds.