Kataria Industries IPO opens today: Check price band, GMP and other details of this SME Issue

The initial public offering (IPO) of Kataria Industries will open for bidding on July 16 and the three-day issue will conclude for bidding on Friday, July 19. The SME player is offering its shares in the range of Rs 91-96 apiece with a lot size of 1,200 equity shares and its multiples thereafter.
 

Incorporated in 2004, Kataria Industries manufactures and supplies low relaxation prestressed concrete (LRPC) strands and steel wires, post-tensioning (PT) anchorage system (Anchor Cone, Anchor Head, and Wedges), HDPE single-wall corrugated (SWC) sheathing ducts, couplers, and aluminum conductors.
 

Kataria Industries is looking to raise Rs 54.58 crore via its SME issue, which entirely consists of a fresh issue of up to 56.85 lakh equity shares. Ahead of its IPO, the company raised a total of Rs 15.53 crore from anchor investors, allocating 16,17,600 shares to AG Dynamics Funds, North Star Opportunities Fund, Radiant Global Fund and Eminence Global Fund PCC.
 

Retail investors can apply for only a single lot or 1,200 equity shares amounting to Rs 1,15,200. Non-retail investors can apply for at least two lots or 2,400 equity shares amounting to Rs 2,30,400. Net proceeds from the issue shall be towards  capital expenditure for plant and machineries; repayment of debt; and general corporate purposes.
 

The grey market premium (GMP) for the SME issue remains firm and has inched up in the last 24 hours. The company is commanding a premium of Rs 50 per share in the unofficial market, which is signaling a listing pop of 52 per cent over the upper end of the IPO price band. The GMP stood at Rs 45 about 24 hour ago.
 

Kataria Industries has two manufacturing plants in Ratlam, Madhya Pradesh, equipped with essential machinery, infrastructure, and in-house testing facilities. Its manufacturing facility is certified for quality management systems. The company serves both domestic and international customers and has exported goods to Dubai, Qatar, Nepal, Iran, Oman, Bahrain, and Brazil.
 

The company's wide range of products is used in various sectors, including Infrastructure, Roads, Bridges, Flyovers, Metros, Railways, High-Rise Buildings, Atomic Reactors, LNG Tanks, Power Transmission, and Distribution Lines.
 

Kataria Industries reported a net profit of Rs 10.02 crore with a revenue of Rs 341.49 crore for the fiscal year ended on March 31, 2024. The company's bottomline came in at Rs 7.78 crore with revenue of Rs 333.93 crore in the financial year 2022-23.
 

50 per cent of the net offer shall be reserved for the qualified institutional bidders (QIBs), while 15 per cent of the net offer shall be reserved for the non-institutional bidders. Retail investors will have the remaining 35 per cent of the net issue allocated towards them.
 

Interactive Financial Services is the book running lead manager of the Kataria Industries IPO, while Bigshare Services is the registrar for the issue. Shares of the company shall be listed on the NSE's Emerge (SME) platform with July 24 as the tentative date of listing.