Kalahridhaan Trendz makes a muted debut, shares list at nearly 5% premium to IPO price

Fabrics trading company Kalahridhaan Trendz Ltd shares made a muted debut on the stock exchanges on Friday, February 23. The stock was listed at ₹47.15 per share on the SME platform of the NSE, reflecting a premium of around 5% over the issue price. The company had fixed the IPO price at ₹45 per share.

After listing, the stock further moved upward 5% to hit the 10% upper circuit limit at ₹49.50 per share.

More than 24 lakh shares of the company changed hands in early deals. The traded value was nearly ₹12 crore. The market capitalisation of the company stood at ₹30 crore at around 12:02 PM.

Kalahridhaan Trendz Ltd IPO subscription and other details

Kalahridhaan Trendz Ltd successfully closed its ₹22.49 crore public offer on Tuesday, February 20, receiving a subscription of 8.16 times. The company allotted shares to successful investors on Wednesday and started refunds on February 22.

Kalahridhaan Trendz IPO comprised a total of 47.46 lakh equity shares of ₹10 each at a price of ₹45 per share aggregating to ₹21.35 crore while Market Maker’s portion was 2,52,000 Equity Shares of ₹1.13 crore. The initial public offering of Kalahridhaan Trendz was a fresh issue of shares with no offer for sales (OFS) component.

According to exchange data, the public offer received bids for 4,07,79,000 equity shares at the close of the bidding against the total issue size of 49,98,000 equity shares.

Retail investors placed bids for 2,45,94,000 equity shares as against the quota of 23,73,000 equity shares for them.

The non-institutional investors (NIIs) placed bids for 1,61,85,000 equity shares against the reserved portion of 23,73,000 equity shares for the category. The Kalahridhaan Trendz IPO lot size for retail investors was 3,000 shares, aggregating to a minimum investment of ₹1,35,000.

According to the company, the IPO proceeds will be utilised for financing working capital needs of ₹16.07 crore and meet other general corporate purposes of ₹5.35 crore. Kalahridhaan Trendz promoters— Niranjan Agarwal, Aditya Agarwal and Sunitadevi Agarwal— hold nearly 96.22% stake in the company, which will be diluted to 68.24% after the IPO.

About Kalahridhaan Trendz

Kalahridhaan Trendz is primarily engaged in manufacturing of fabrics with embroidery works, trading of grey cloths, printing and dyeing. The company supplies fabrics for preparing suiting, shirting and dress materials.

The company also undertakes contract manufacturing of the embroidery work for other clients. It has two embroidery knitting machines having a capacity of 15,000 metres per day