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The initial public offering (IPO) of KSH International, which opened for bidding on Tuesday, December 16, has entered its last day today, December 18. This means that investors can apply for the IPO till 5 pm.

So far, KSH International IPO has continued to receive a tepid response from investors across all categories. The mainboard IPO was booked only 26% as of the second day of bidding on Wednesday, December 17.

Established in 1981, KSH International, a manufacturer of magnet winding wires, operates under the KSH brand. It has built a strong market presence over the past four decades. The company caters to several marquee customers and exports its products to 24 countries worldwide.

On the last day of bidding, the KSH International IPO was subscribed 34% so far, attracting 45.75 lakh shares against an offered 1.36 crore shares, according to BSE data.

The retail segment of the IPO was subscribed 0.60 times, the non-institutional investor (NII) segment 0.17 times, and the qualified institutional buyer (QIB) portion had yet to receive any bids.

The GMP of KSH International IPO fell to ₹0 on Thursday, December 18, from ₹6, as per Investorgain. This means that the shares of the KSH International IPO are currently trading at a premium of ₹0.

The estimated listing price of the KSH International IPO is likely to remain the same as the IPO price of ₹384.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Brokerage firm SBI Securities has given a ‘neutral’ rating to the KSH International IPO.

The firm said, “At the upper price band of ₹384, the issue is priced at FY25 P/E and EV/EBITDA multiples of 38.3x and 20.7x, respectively, based on post-issue capital. While comparing with its closest peers, the issue seems to be fairly valued, coupled with a slightly superior margin profile. However, the company plans to repay debt of ~ ₹226 cr from the proceeds of the issue, which is expected to boost profitability by ₹10 cr to ₹13 cr. Thus, we maintain a NEUTRAL view on the company and would like to monitor its performance post listing.”

On the other hand, Angel One has given a positive outlook on the KSH International IPO, noting that the issue appears reasonably valued and supported by strong sector fundamentals.

At the upper end of the price band, ₹384, the IPO is priced at a post-issue P/E of 28.68x. The brokerage highlighted the company’s sustained earnings growth, improving return ratios, and leadership position in the magnet winding wires market, along with demand tailwinds from the power, renewables, EV and industrial segments.

“We believe the IPO is fairly priced at a P/E of 28.68x, and with strong earnings traction, improving ratios and favourable industry drivers, the issue offers solid long-term visibility for investors,” Angel One said, assigning a “Subscribe” rating for medium- to long-term investors.

The ₹710 crore initial public offering of KSH International consists of a ₹420 crore fresh equity issuance and a ₹290 crore offer for sale by the promoters. The IPO is priced in a band of ₹365 to ₹384 per share, with investors required to apply in lots of 39 shares.

Proceeds from the fresh issue will be utilised to reduce outstanding debt, enhance machinery capacity at the Supa and Chakan facilities, install a rooftop solar power plant at Supa, and support general corporate purposes.

The allotment for the KSH International is expected to be completed on Friday, December 19. The company’s shares are slated to be listed on the BSE and NSE, with a tentative listing date of December 23.

Nuvama Wealth Management Ltd. is acting as the book-running lead manager for the issue, while MUFG Intime India Pvt. Ltd. has been appointed as the registrar.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.

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