KSH International Lists 5% Below IPO Price: Why Investors May Hold or Exit

KSH International, a maker of magnet winding wires used in transformers and motors, opened its stock market debut at a price lower than its IPO offer, sparking questions for new shareholders.

Day‑One Price Action

On both the BSE and NSE, the shares started at ₹370 but quickly fell to around ₹351, a drop of about 5%. This price was roughly 3.6% below the IPO price of ₹384, matching the modest expectations set by the grey market.

What Caused the Soft Start?

• Grey‑market premium had slipped to zero before the listing, indicating limited excitement.
• Retail and non‑institutional investors subscribed to less than half of their allotted shares, showing valuation sensitivity.
• Analysts gave a neutral to cautious outlook for short‑term gains.

Company Strengths

KSH International is the third‑largest and the biggest exporter of magnet winding wires in India. Its key customers include Power Grid Corp, NTPC, and NPCIL, and it sells to 24 countries such as the US, Germany, Japan and the UAE. The firm operates three plants in Maharashtra with a combined capacity of about 29,000 tonnes and plans a fourth plant by FY26.

Financial Snapshot

• Revenue grew 39% year‑on‑year to ₹1,938 crore.
• Profit after tax jumped 82% to ₹67 crore.
• Profit margin is modest at 3.5% and EBITDA margin at 6.3%.
• Total debt is over ₹360 crore, with a debt‑to‑equity ratio of 1.17.

Proceeds from the IPO will be used mainly to repay debt, buy new machinery and fund a rooftop solar project at the new Supa plant.

Investor Takeaway

Experts suggest that short‑term traders may consider exiting the position, while long‑term investors could hold the stock with a stop‑loss around ₹350. The business ties to electrification, renewable energy and electric vehicles give it a solid growth theme, but the current valuation appears tight.

Ultimately, whether to stay invested depends on your risk tolerance and belief in the company’s long‑term prospects.