Kalana Ispat Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
Participate in the Kalana Ispat Ltd IPO with full transparency. Review issue details, company fundamentals, and financial performance, and apply securely through Alice Blue.
IPO Snapshot
Key metrics and details at a glance.
Price Band
₹66
Per ShareLot Size
2000 Shares
Minimum Investment
₹1,32,000
Issue Size
₹32.59 Cr
Face Value
₹10
Per ShareIPO Type
Fixed Price - SME
Retail Quota
50.02%
QIB Quota
0%
NII Quota
49.98%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Kalana Ispat Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
100%
Promoter Holding (Post-Issue)
62.12%
Issue Type
Fixed Price - SME
ISIN
INE0T0L01014
About the Company
The Company was engaged in trading metal scraps, which were procured through imports from various countries, sourced from shipbreaking yards and local merchants. As the business progressed, the Company ventured into manufacturing M.S. Billets and set up its manufacturing unit in Ahmedabad, Gujarat in the year 2015. Today, the Company is engaged in manufacturing M.S. Billets and Alloy Steel Billets/Ingots.
Industry Overview
Global Scenario: 1. In 2022, the world crude steel production reached 1885.4 million tonnes (MT). World Steel Association in its Short-Range Outlook, October 2023 forecasts that steel demand will grow by 1.8% in 2023 and reach 1,814.5 MT after contracting by 3.3% in 2022. In 2024, steel demand will see a further increase of 1.9% to 1,849.1 MT. 2. India is the second largest producer of crude steel. China was world's largest crude steel producer in 2022 (1018.0 MT) followed by India (125.3 MT), Japan (89.2 MT) and the USA (80.5 MT). 3. Per capita finished steel consumption in 2022 was 221.8 kg for world and 645.8 kg for China. The same for India was 86.7 kg in 2022-23. Domestic Scenario: a) Steel is a de-regulated sector. The Government's role is that of a facilitator which lays down the policy guidelines and establishes the institutional mechanism/structure for creating conducive environment for improving efficiency and performance of the steel sector. b) In this role, the Government has released the National Steel Policy 2017, which has laid down the broad roadmap for encouraging long term growth for the Indian steel industry, both on demand and supply sides, by 2030-31.
Company History
Kalana Ispat Limited was originally incorporated as `Kalana Ispat Private Limited', a private limited company, under the Companies Act, 1956, with a certificate of incorporation issued under the hand of the Registrar of Companies, Gujarat, Dadra and Nagar Havelli, dated on October 15, 2012. Subsequently, the Company was converted from a private limited company into a public limited company, pursuant to a resolution passed in the extraordinary general meeting of its Shareholders held on December 04, 2023, and consequently, the name of the Company was changed to "Kalana Ispat Limited", and a fresh certificate of incorporation consequent upon conversion from private company to public company dated December 21, 2023, was issued by the Registrar of Companies, Ahmedabad to the Company.
Products & Services
- The Company was engaged in trading of metal scraps.
Growth Strategy
- Focusing on reduction of overheads.
- Exploring opportunities for forward integration.
- Continue to develop client relationships.
Customer Base
Wholesaler and Retailer
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public issue of 49,38,000 equity shares of face value of Rs. 10 each ("Equity Shares") of Kalana Ispat Limited (the "Company") for cash at a price of Rs. 66 per equity share (including a share premium of Rs. 56 per equity share) (the "Issue Price"), aggregating upto Rs. 32.59 crores ("The Issue"), of which 2,48,000 equity shares of face value of Rs. 10 each for cash at a price of Rs. 66 per equity share, aggregating to Rs. 1.64 crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion"). The issue less market maker reservation portion i.e. issue of 46,90,000 equity shares of face value of Rs. 10 each for cash at a price of Rs. 66 per equity share, aggregating to Rs. 30.95 crores is hereinafter referred to as the "Net Issue". The issue and the net issue will constitute 37.87% and 35.97% respectively of the fully diluted post issue paid up equity share capital of the company. The face value of the equity shares is Rs. 10 each and the issue price of Rs. 66 is 6.6 times of the face value of the equity shares.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Innovation focused business model.
- Consistent track record of profitable growth due to a scalable business model.
- Established and proven track record.
- Leveraging the experience of its Promoters.
- Experienced management team and motivated employees.
- The Company, Promoter and Group Companies are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before various regulatory authorities. Any adverse decision may make it liable to liabilities or may adversely affect its reputation/ business/financial status. A classification of these legal and other proceedings is given below.
- The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, and the failure to obtain, retain and renew such approvals and licenses or comply with such rules and regulations, and the failure to obtain or retain them in a timely manner or at all may adversely affect its operations.
- Its business is subject to a variety of safety, health and environmental laws, labour, and workplace related laws and regulations. Any failures on its part to comply with these applicable laws and regulations could have an adverse effect on its operations and financial condition.
- The Company has opted for HTP-IV tariff for its power needs as are supplied to it by Uttar Gujarat Vij Company Limited, any changes and/or discontinuation of the tariff plans floated by Gujarat Electricity Regulatory Commissions or any non-adherence with the conditions provided under the electricity tariffs may negatively impact the results of operations and profitability of the Company.
- The Company is yet to place order for installation of the Solar Power Plant and for machinery for setting up of its rolling mill, as mentioned in the company Objects of the Issue. Any delay in placing orders/ procurement of machinery, may delay its implementation schedule and may also lead to increase in price of these machineries.