KSH International Debuts at 4% Discount: What This Means for New Investors

KSH International's shares started trading on Tuesday at a modest price, giving investors a small discount compared to the IPO price.

Listing debut

The stock opened at ₹370 on both NSE and BSE, which is about 4% lower than the IPO price of ₹384. This price was in line with what the grey market had expected. Before the listing, the grey market premium (GMP) was recorded at ₹‑2.

IPO subscription and changes

The IPO ran from December 16 to December 18, with a total size of ₹710 crore – ₹420 crore fresh issue and ₹290 crore offer‑for‑sale (OFS) from existing shareholders. Initial overall subscription was around 83%.

To meet regulatory requirements for at least 90% subscription, KSH reduced the OFS amount to ₹224.4 crore while keeping the fresh issue unchanged. After this adjustment, the subscription rate rose above the 90% threshold.

Planned use of fresh‑issue proceeds

• ₹226 crore will go toward paying down debt.
• ₹87 crore is earmarked for buying and installing new machinery at the Supa plant and the second unit in Chakan.
• ₹8.8 crore will fund a rooftop solar power plant at the Supa facility.

Key players

Nuvama Wealth Management Ltd. acted as the book‑running lead manager, and MUFG Intime India Pvt. Ltd. served as the registrar for the issue.

Takeaway

While the debut was modest, the company’s decision to trim the OFS helped secure the needed subscription level, and the clear allocation of funds points to a focus on debt reduction and capacity expansion.

Remember, this is perspective, not a prediction. Do your own research or consult an investment advisor before making any decisions.