Kataria Industries makes stellar debut, shares list at 90% premium to IPO price

Kataria Industries Ltd made a stellar debut on the NSE SME platform, Emerge, on Wednesday, with its shares listing at a premium of 90% over the issue price.

According to the exchange data, Kataria Industries shares listed at ₹182.4 per share, reflecting gains of 90% over the issue price of ₹96 per share.

After listing, the company's shares rallied further to hit a high of ₹191.5 per share, reflecting gains of 99% from the issue price and 5% from the listing price.

More than 10 lakh shares of the company changed hands on the NSE SME platform within the first 20 minutes of trade. The traded value stood at ₹19.3 crore, and the company's market capitalisation reached ₹412 crore.

Kataria Industries Ltd launched its public offer on July 16 to raise ₹54.58 crore from investors on the NSE SME platform. The issue closed on July 19, 2024.

The IPO comprised a fresh issue of 56.85 lakh shares. The company had fixed the price band at ₹91 to ₹96 per share. The minimum lot size was 1,200 shares. The minimum investment required was ₹1,15,200 for retail investors. Bigshare Services Pvt Ltd is the IPO registrar.

Riding on strong demand from retail investors, Kataria Industries Ltd's IPO was booked nearly 394 times at the close of bidding on July 19.

Total bids for 148.86 crore shares worth ₹14,290.65 crore were received against 37.79 lakh shares on offer for subscription.

Retail individual investors placed bids for 51.88 crore shares against 18.89 lakh on offer for subscription. The retail portion was booked 274 times. The Non-Institutional Buyers’ portion was booked 970 times. NIIs placed bids for 78.8 crore shares against 8.08 lakh shares on offer.

Qualified Institutional Buyers’ quota was booked 171 times. Bids for 18.48 crore were received against 10.81 lakh on offer.

Kataria Industries earlier raised ₹15.53 crore from anchor investors. The company allotted 1,617,600 shares at a price of ₹96 per share.

The company has proposed to utilise IPO proceeds of ₹46 crore for repayment of loans. The company will use ₹1.75 crore to meet capital expenditure for plant and machinery.

About Kataria Industries

The company is a manufacturer and supplier of Low relaxation pre-stressed concrete (LRPC) strands and steel wires, HDPE single wall corrugated (SWC) sheathing ducts, post-tensioning (PT) anchorage system (Anchor Cone, Anchor Head and Wedges), couplers and aluminium conductors.

These products are used in various sectors including infrastructure, roads, bridges and flyovers, metros and railways.

The company has two manufacturing plants in Ratlam, Madhya Pradesh.