Kataria Industries IPO Debuts at a 90% Premium Over IPO Price on NSE SME

Kataria Industries IPO made an impressive debut on the stock exchange on July 24, listing at ₹182, which represents a significant 90% premium over its issue price of ₹96 on the NSE SME platform. At least 1,200 shares were available for purchase at this opening price. However, the listing gains fell short of the grey market expectations, where shares were trading at a 110% premium. 

The company's ₹54.58-crore public offer, which involved a fresh issue of 56.85 lakh shares, garnered substantial investor interest, with the issue being oversubscribed 393.72 times. Non-institutional investors were particularly enthusiastic, buying over 970 times their allotted quota, followed by retail investors and qualified institutional buyers (QIBs), who purchased 171 times their portion. Check Kataria Industries IPO Subscription Status

According to the red herring prospectus (RHP), the company's comparable peers include Kamdhenu Ltd, with a P/E ratio of 39.76, Incredible Industries Ltd, with a P/E ratio of 45.19, and Bharat Wire Ropes Ltd, with a P/E ratio of 33.88.

For the fiscal year 2023–2024, the company reported a revenue of ₹339.13 crore. Its earnings before interest, taxes, depreciation, and amortisation (EBIDTA) stood at ₹22.93 crore, and the company's net worth was ₹45.49 crore. Additionally, the company achieved a return on equity (ROE) of 24.53% and a return on capital employed (ROCE) of 17.40%.

Founded in 2004, Kataria Industries specializes in the manufacturing and supply of Low Relaxation Pre-stressed Concrete (LRPC) strands and steel wires, post-tensioning (PT) anchorage systems (including anchor cones, anchor heads, and wedges), HDPE single-wall corrugated (SWC) sheathing ducts, couplers, and aluminum conductors.

The company intends to use the net proceeds from the issue for several purposes, including capital expenditure for plant and machinery, debt repayment, and general corporate purposes.

To Summarize

Kataria Industries IPO opened at ₹182.40 on their stock exchange debut today, marking a significant 90% increase from the issue price of ₹96 on the NSE SME platform. On the final bidding day, the subscription status for Kataria Industries was an impressive 393.87 times. The company plans to utilize the net proceeds from this issue for various objectives, such as capital expenditure for plant and machinery, debt repayment, and general corporate purposes.