KVS Castings Launches Rs 27.83 Crore IPO on BSE SME Platform
KVS Castings, a manufacturer of metal components, has launched its IPO on the BSE SME platform to raise Rs 27.83 crore. The IPO offers 49.7 lakh shares at a price band of Rs 53-56 per share, with subscription open from September 26 to 30. The company specializes in cast iron, SG iron, alloy steel, and stainless steel castings for various industries. In the last fiscal year, KVS Castings reported revenue of Rs 50.43 crore and a net profit of Rs 6.63 crore. The IPO proceeds will primarily fund capital expenditure and capacity enhancement.
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KVS Castings, a manufacturer of cast iron and other metal components for various industries, has launched its Initial Public Offering (IPO) on the BSE SME platform. The company aims to raise Rs 27.83 crore through the fresh issue of equity shares.
IPO Details
- Subscription Period: September 26 to September 30
- Issue Size: 49.7 lakh shares
- Price Band: Rs 53 - Rs 56 per share
- Minimum Retail Application: 4,000 shares (Rs 2.24 lakh)
Allocation Structure
| Investor Category | Shares Allocated |
|---|---|
| Institutional Buyers | 23.50 lakh |
| Non-Institutional Investors | 7.08 lakh |
| Retail Participants | 16.56 lakh |
Company Overview
KVS Castings specializes in manufacturing:
- Cast iron
- SG iron
- Alloy steel
- Stainless steel castings
The company caters to various sectors, including:
- Automobile industry
- Locomotive industry
- Engineering industry
With a diverse product portfolio, KVS Castings offers over 150 components, including suspension brackets and brake drums.
Financial Performance
For the most recent fiscal year:
- Revenue: Rs 50.43 crore (8% year-over-year decrease)
- Net Profit: Rs 6.63 crore (11% year-over-year increase)
Use of Proceeds
The company plans to utilize the IPO funds as follows:
- Rs 21.50 crore for capital expenditure and capacity enhancement
- Remaining funds for general corporate purposes
Market Sentiment
As of the IPO launch, no grey market premium was reported for KVS Castings' shares.
The IPO presents an opportunity for investors interested in the manufacturing sector, particularly in metal castings for critical industries. Potential investors should carefully review the company's financials, growth prospects, and risk factors before making an investment decision.
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