Kaka Industries IPO opens today: Check price band, grey market and more

The initial public offering (IPO) of Kaka Industries kicks off for subscription on Monday, July 10 as the company looks to raise Rs 21.23 crore via primary route. The company is selling its shares in the range of Rs 55-58 apiece during the three-day share sale, which concludes on Wednesday, July 12.

The issue is entirely a fresh sale of up to 36.6 crore equity shares with a lot size of 2,000 equity shares. Each lot will cost Rs 1.16 lakh to the investors. Retail investors can make a bid for only one lot or say 2,000 equity shares, while non-institutional investors (NIIs) need to make a bid for a minimum of two lots, or 4,000 equity shares, amounting to Rs 2.32 lakh.

The company intends to utilize the net proceeds from the issue towards repayment and/or pre-payment, in full or part, of certain borrowings availed by the company; to meet Working Capital requirements; general corporate purpose; and meeting issue expenses.

1.92 lakh shares, or 5.52 per cent stake, is reserved for Hem Finlease as market marker portion 17.32 lakh shares, or 0.47.32 per cent stake, has been reserved for qualified institutional bidders (QIBs), while 5.22 lakh shares, or 14.25 per cent stake, shall be allocated to NIIs investors. Retail investors will get 12.14 lakh shares, or 33.17 per cent stake, of the issue.

Hem Securities is the sole book running manager to the issue, while Bigshare Services has been appointed as the registrar to the issue. Shares of Kaka Industries will list on emerge platform of National Stock Exchange (NSE) with Thursday, July 20 as the tentative listing date.

Incorporated in 2019, Kaka Industries manufactures polymer-based profiles for application in doors, windows, partitions, false ceilings, wall paneling, kitchen cabinets and other interior and exterior works. The company's product portfolio has over 1,200 SKUs covering PVC Profile, uPVC door & window profile, WPC Profile & sheets in various sizes, specifications, and colors.

It is also engaged in the fabrication of factory-made PVC & Solid PVC doors. Kaka Industries has three manufacturing units in village Zak, Gandhinagar, Gujarat The company's distribution network comprises 3 depots situated in Gagillapur (Telangana), Dadri (Uttar Pradesh), and Surat (Gujarat).

The company is commanding a premium of Rs 50 per share in the grey market, which is more than 86 per cent of its higher range of the issue price at Rs 58. The premium in the official market has increased from Rs 38 on Friday.

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