Kaushalya Logistics IPO Day 2: Issue fully booked on strong retail, NII interest. GMP steady
Kaushalya Logistics IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.
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Tentatively, Kaushalya Logistics IPO basis of allotment of shares will be finalised on Thursday, January 4 and the company will initiate refunds on Friday, January 5, while the shares will be credited to the demat account of allottees on the same day. Kaushalya Logistics shares are likely to be listed on NSE SME on Monday, January 8.
According to Kaushalya Logistics Limited’s red herring prospectus (RHP), the company is designed to be an integrated logistics and clearing and forwarding (C&F) services provider. The company currently works in three main verticals, one of which is offering Dalmia Cement Bharat Limited dealers and customers logistical support for handling and dealing in cement.
In the other vertical, which is retail and e-commerce, the company sell electronics and white goods like refrigerators, washing machines, and televisions on a large online e-commerce platform that serves locations all over India and is registered with the Goods and Services Tax (GST) in 17 locations.
The third vertical of the company’s operations is the commercial real estate sector, which they have entered by owning and leasing commercial shops in Udaipur.
The company in its RHP, stated that there are no like to like comparable listed companies in India that are engaged in all aspects of the business that it operate.
Kaushalya Logistics IPO details
Kaushalya Logistics IPO comprises a fresh issue of 33,80,000 equity shares aggregating up to ₹25.35 crore, and an offer for sale (OFS) of 15,00,000 equity shares totalling up to ₹11.25 crore by promoters, as per red herring prospectus (RHP). Kaushalya Logistics IPO issue size is ₹36.60 crore.
The company plans to use the net proceeds for general corporate purposes, funding the company’s working capital needs, and the repayment of the unsecured loan.
The registrar for the Kaushalya Logistics IPO is Skyline Financial Services Private Ltd, and the book running lead manager is Khandwala Securities Limited. The Nikunj Stock Brokers is the market maker for the Kaushalya Logistics IPO.
Uddhav Poddar, Managing Director of Kaushalya Logistics Limited expressed, “This IPO marks a pivotal milestone in the growth journey of Kaushalya Logistics Limited. Our strategic positioning in key sectors reflects a vision aimed towards unlocking new opportunities.
The capital raised through this offering will be utilised for the repayment of unsecured loans and addressing working capital requirements. Our development as an integrated Logistics and Clearing and Forwarding (C&F) services provider further reinforces our commitment to delivering comprehensive solutions in the industry.”
Kaushalya Logistics IPO subscription status
Kaushalya Logistics IPO subscription status is 25.01 times, so far on day 2. The issue received positive response from retail investors who’s portion set was subscribed 39.50 times, and non-institutional buyers who’s portion was subscribed 23.64 times, according to data on chittorgarh.com. Qualified Institutions buyers subscribed 2.02 times.
The company has received bids for 8,26,11,200 shares against 33,02,800 shares on offer, at 16:15 IST, according to data on chittorgarh.com.
Kaushalya Logistics IPO subscription status was 93% on day 1.
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Kaushalya Logistics IPO GMP today
Kaushalya Logistics IPO GMP today or or grey market premium is +55, similar to previous two sessions. This indicates Kaushalya Logistics share price were trading at a premium of ₹55 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Kaushalya Logistics share price is ₹130 apiece, which is 73.33% higher than the IPO price of ₹75.
Based on last 9 sessions grey market activities, today IPO GMP points upward and expects a strong listing, as per analysts of investorgain.com. The lowest GMP is ₹0, while the highest GMP is ₹55.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Kaushalya Logistics IPO Review
Contributing editor at Chittorgarh, Dilip Davda, claims that the company works in real estate, e-commerce, and logistics services. These are all very competitive and dispersed markets. Looking at annualised earnings for FY24, it seems that the issue is priced fully. Its increased debt is cause for alarm.
“Considering bright prospects for infra push and higher consumption of cement, this specialised service providing company is heading for good time ahead. With the new awards in the pipeline, the management is confident for improving its performance. Investors may park funds for the medium to long term rewards,” said Dilip Davda.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 01 Jan 2024, 01:52 PM IST
