Kalyani Cast Tech's shares debuted on the BSE SME (small and medium enterprise) platform with great fanfare, rising about 90 per cent in the first hour on Friday, November 17. As a result, the stock is practically listed as a multibagger.
When the stock first traded, it was worth Rs 264.10 a share, which was 90 per cent more than its issue price of Rs 139. The stock had increased by 5 per cent after launching on the BSE at the day's close, trading at Rs 277.30.
Shares of Kalyani Cast Tech were trading in the unlisted market at a premium of Rs 95 prior to listing. The IPO shares can be purchased and sold on the grey market, an unauthorized marketplace, up until the listing.
The initial public offer (IPO) witnessed a strong response from investors and was booked over 208 times, led by non-institutional buyers. The NII portion was subscribed 439 times, followed by the retail investors' quota at 190 times. The qualified institutional buyers' portion was booked 66 times.
The price band of the issue, which was open for bidding from November 8 to November 10, was fixed at Rs 137-139 per share. At the upper end of the price band, Kalyani Cast Tech raised Rs 30.11 crore via the IPO route.
The offer was entirely a fresh issue of 21.66 lakh shares, and there was no offer-for-sale component. Kalyani Cast Tech plans to utilise the IPO proceeds to fund working capital requirements and for general corporate purposes.
Gretex Corporate Services acted as the book-running lead manager to the issue, while Bigshare Services was the registrar. Gretex Share Broking was the market-maker to the IPO.