Kalana Ispat Limited is coming up with an IPO consisting of a fresh issue of 49,38,000 shares worth INR 32.59 crores. The company aims to fund solar plant installation and rolling mill setup and support general corporate purposes.
Kalana Ispat IPO – Important Dates
| Kalana Ispat Limited IPO Date | September 19, 2024 to September 23, 2024 |
| Kalana Ispat Limited IPO Listing Date | September 26, 2024 |
| Kalana Ispat Limited IPO Price | INR 66 per share |
| Kalana Ispat Limited IPO Lot Size | 2000 Shares |
| Kalana Ispat Limited IPO Total Issue Size | INR 32.59 crores |
| Kalana Ispat Limited IPO Basis of Allotment | September 24, 2024 |
| Kalana Ispat Limited IPO Initiation of Refunds | September 25, 2024 |
| Kalana Ispat Limited IPO Credit of Shares to Demat | September 25, 2024 |
| Kalana Ispat Limited IPO Issue Type | Fixed Price Issue IPO |
| Kalana Ispat Limited IPO Listing At | NSE SME |
Read more about Kalana Ispat Limited IPO GMP
Kalana Ispat Limited IPO – Company Profile
Kalana Ispat Limited was incorporated as a private company in 2012 and converted into a public limited company in March 2024, following shareholder approval, with a new certificate issued by the Registrar of Companies, Ahmedabad.
The company manufactures and sells M.S. Billets and Alloy Steel Billets while trading iron scrap, iron ore, and ingots. Additionally, it provides casting services through job work when spare capacity is available.
The company plans to install a solar plant in Banaskantha for captive power consumption, reducing operational costs under Gujarat’s Green Energy Open Access policy. It will utilize INR 22.99 crores from the IPO proceeds.
Kalana Ispat Ltd IPO Fundamental Analysis
Kalana Ispat Limited’s financial analysis reveals a mixed performance. Revenue has increased steadily, profitability has improved significantly, and EPS and RoNW have risen, indicating growth. However, the inventory turnover ratio reflects potential inefficiencies.
- Revenue Trend: The revenue increased from ₹5,774.88 lakhs in March 2022 to ₹8,303.86 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 7,372.64 lakhs.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion.
- Profitability: The profit after tax (PAT) has significantly increased from ₹13.66 lakhs in March 2022 to ₹236.70 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹1.37 in March 2022 to ₹3.03 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 3.51% to 21.88%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Kalana Ispat IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 5,774.88 | 8,303.86 | 7,372.64 |
| Equity (₹ in lakhs) | 389.61 | 439.70 | 1,081.58 |
| Expenses (₹ in lakhs) | 5,774.41 | 8,268.04 | 7,068.76 |
| Profit and Loss After Tax (₹ in lakhs) | 13.66 | 50.09 | 236.70 |
| Diluted EPS only (₹) | 1.37 | 5.01 | 3.03 |
| Return on Net Worth (%) | 3.51 | 11.39 | 21.88 |
| NAV per Equity Share (₹) | 38.96 | 43.97 | 13.87 |
| Total Assets (in lakhs) | 1,264.89 | 1,617.46 | 1,885.71 |
| Total Liabilities (in lakhs) | 875.28 | 1,177.76 | 804.13 |
| Current Ratio (in times) | 1.03 | 1.07 | 1.99 |
| Inventory Turnover Ratio | 20.13 | 13.52 | 10.49 |
Kalana Ispat Limited IPO Peer Comparison
Kalana Ispat Limited shows moderate revenue and profitability compared to peers like Supershakti Metaliks, Incredible Industries, and Gallantt Ispat, which have significantly higher revenues, EPS, and asset bases, indicating more vital market positions and scale.
| Company | Revenue from Operations (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) | Net Worth (₹ in lakhs) |
| Kalana Ispat Limited | 7,372.64 | 10 | 21.75 | 3.03 | 21.88 | 13.87 | 1,081.58 |
| Supershakti Metaliks Limited | 73,141.28 | 10 | 31.43 | 11.63 | 5.36 | 217.13 | 25,025.27 |
| Incredible Industries Limited | 81,815.52 | 10 | 37.26 | 1.28 | 4.50 | 28.36 | 13,260.63 |
| Gallantt Ispat Limited | 4,22,711.75 | 10 | 39.83 | 9.34 | 9.19 | 101.57 | 2,45,072.68 |
Kalana Ispat Ltd IPO Objective
The main objective of Kalana Ispat Limited is to invest in a 4 MW solar power plant and set up a rolling mill in Ahmedabad by constructing an industrial shed and acquiring the necessary equipment and machinery.
- Capital expenditure for installation of 4 MW DC & 3.5 MW AC Ground-Mounted Solar Power Plant—TPSAT Structure: The company intends to utilize INR 22.99 crores for installing a 4 MW solar power plant, which will significantly reduce power costs for its manufacturing unit, boost profitability, and enhance sustainability under Gujarat’s Green Energy Open Access policy.
- Capital expenditure for setting up a rolling mill at Survey No. 4/1 Taluka Sanand, Mouje Kala village, Ahmedabad, including construction of the industrial shed, purchase of equipment/machinery, other assets, etc.: The company plans to utilize INR 7.99 crores to set up a rolling mill in Ahmedabad, expanding its product range to include MS Rounds and MS Flats, leveraging existing manufacturing outputs, and diversifying its market.
- General Corporate Purpose: The company will deploy a balance of INR 0.60 crores to general corporate goals, including prepayment of borrowings, strategic initiatives, acquisitions, office setup, business development, R&D, fixed assets, and various operational expenses.
Kalana Ispat IPO Risks And Challenges
Kalana Ispat Limited’s risk includes ongoing litigation that could impact its reputation and finances, potential costs from environmental compliance, and operational constraints due to reliance on the HTP-IV tariff, which may increase expenses and affect profitability.
- Their company, Promoter, and Group Companies are involved in litigation and claims at various regulatory levels. Adverse decisions could lead to liabilities and negatively impact their reputation, business, or financial status.
- Their company adheres to environmental and safety laws but faces potential costs and liabilities for compliance. Future legal changes or breaches could lead to fines, penalties, or operational restrictions, impacting revenues and financial conditions.
- The company’s reliance on the HTP-IV tariff reduces energy costs but restricts operations to night hours. Any tariff changes or concession withdrawals by the Gujarat Electricity Regulatory Commission could increase expenses, impacting profitability and operational efficiency.
Kalana Ispat Ltd IPO – Industry & Market Potential
In 2022, global crude steel production was 1,885.4 MT. Steel demand is forecasted to grow 1.8% in 2023 to 1,814.5 MT, with a further increase of 1.9% to 1,849.1 MT in 2024. India, the second-largest producer, had a per capita steel consumption of 86.7 kg in 2022-23.
Steel is deregulated by the government, which facilitates policy. The National Steel Policy 2017 aims for growth by 2030-31, while the PLI Scheme targets 42 MT speciality steel by 2026-27. Capacity was 161.3 MT in 2022-23.
The steel sector saw record performance in April-October FY ’24, with global crude steel production increasing by 0.2%. A leading producer, India has seen fluctuations in steel exports and prices influenced by market forces and government policies.
Kalana Ispat Limited IPO – Type of Offer
Kalana Ispat Limited is coming up with an IPO consisting of a fresh issue of 49,38,000 shares worth INR 32.59 crores. The company aims to fund solar plant installation and rolling mill setup and support general corporate purposes.
Kalana Ispat IPO Offer Size
The offer size of Kalana Ispat Limited is INR 32.59 crores, consisting of a fresh issue of 49,38,000 shares. The company seeks funds for solar plant installation, rolling mill setup, and support for general corporate purposes.
Kalana Ispat Limited IPO Allotment Structure
Kalana Ispat Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 248,000 shares for Market Makers.
- Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.
- Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.
- Market Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 248,000 shares for this purpose.
How to apply for Kalana Ispat IPO?
To apply for the Kalana Ispat Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Kalana Ispat Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Kalana Ispat Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
Read more about Kalana Ispat IPO Day 1 Subscription
How do you check Kalana Ispat IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Kalana Ispat Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Kalana Ispat Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Kalana Ispat Limited IPO:
● Registrar’s Website: Visit the website of Skyline Financial Services Private Limited, the registrar of the Kalana Ispat Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Kalana Ispat Ltd IPO Offer Registrar
The registrar for the Kalana Ispat Limited IPO is Skyline Financial Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Skyline Financial Services Private Limited
D-153A, 1st floor,
Phase I, Okhla Industrial Area,
Delhi – 110020
Tel No.: +91-11-40450193-97,
E-mail: [email protected]
Website: www.skylinerta.com
Kalana Ispat IPO – FAQs
1. What is the allotment date of the Kalana Ispat IPO?
The allotment date of the Kalana Ispat Limited IPO is September 24, 2024.
2. What is the price band of the Kalana Ispat IPO?
The price band of Kalana Ispat IPO is INR 66 per share.
3. What is the size of the Kalana Ispat IPO?
The offer size of Kalana Ispat Limited is INR 32.59 crores, consisting of a fresh issue of 49,38,000 shares. The company seeks funds for solar plant installation, rolling mill setup, and support for general corporate purposes.
4. What is the listing date of the Kalana Ispat IPO?
The listing date of Kalana Ispat Limited’s IPO is September 26, 2024.
