KSH International shares disappointed on market debut; stock lists at 4% discount

Shares of KSH International made a disappointing Dalal Street debut on Tuesday, December 23 as the exporter of magnet winding wires settled at Rs 379 on both BSE and NSE, a discount of 3.65 per cent over its issue price of Rs 384. As of the listing price, investors made a loss of Rs 546 for every lot of 39 equity shares allotted to them.

Listing of KSH International has been on the expected lines, led by weak grey market trends and muted bidding. Ahead of its listing, shares of KSH International took a major hit in its grey market premium (GMP). Last heard, they were trading at a discount of Rs 2-5 apeice, suggesting a weak listing for the investors.

The IPO of KSH International was open for bidding between December 16 and December 18. It had offered its shares in the price band of Rs 16-18 per share with a lot size of 39 shares. The issue barely managed to sail through after the three-day bidding process, after reducing the issue size.

Initially, KSH International was planning to raise a total of Rs 710 crore IPO, which was cut down to Rs 644.45 crore. The fresh share sale was not slashed but the offer-for-sale (OFS) portion was trimmed by Rs 65.55 crore from Rs 290 crore to Rs 224.45 crore earlier. The issue was originally booked at only 83 per cent with just 1.15 lakh applications.

Pune-based KSH International, incorporated in 1979, is the third-largest manufacturer and the largest exporter of magnet winding wires in India. KSH International operates under the 'KSH' brand and supplies to OEMs across sectors like power, renewables, railways, automotive, and industrials.

Brokerage firms had mixed views on this issue, mostly suggesting it for long-term bidding. Nuvama Wealth Management and ICICI Securities were the book running lead managers of KSH International IPO and MUFG Intime India served as the registrar of the issue.