Kaushalya Logistics IPO Day 4: Issue oversubscribed due to strong retail and NII interest. GMP drops

Kaushalya Logistics' IPO opened for subscription on Friday, December 29 and closes on Wednesday, January 3. The price range for Kaushalya Logistics IPO is in the range of ₹71 to ₹75 per share. The lot size of Kaushalya Logistics IPO consists of 1,600 shares. Investors can bid for at least 1,600 shares and multiples thereof. The reserve price is 7.10 times the face value ₹10 and the cap price is 7.5 times the par value of the shares.

Kaushalya Logistics IPO has not more than 50% shares of the public issue reserved 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 qualified institutional buyers Private investors.

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The basis for allotment of shares in Kaushalya Logistics' IPO is expected to be completed on Thursday, January 4 and the company will initiate refund on Friday, January 5 while the shares will be dematted on the same day. be credited to the account of the allottee. Kaushalya Logistics shares are expected to list on the NSE SME on Monday, January 8.

According to the Red Herring Prospectus (RHP) of Kaushalya Logistics Limited, the company is designed to be an integrated provider of logistics, clearing and freight forwarding (C&F) services. The company currently operates in three main areas, one of which is providing logistical support to Dalmia Cement Bharat Limited's dealers and customers in cement handling and trading.

In the other industry, retail and e-commerce, the company sells electronics and home appliances such as refrigerators, washing machines and televisions through a large online e-commerce platform that serves locations across India and is registered with Goods and Services Taxes ( GST) at 17 locations.

The third strand of the company's operations is the commercial real estate sector, which the company has entered into by owning and leasing commercial space in Udaipur.

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The company stated in its RHP that there are no comparable listed companies in India operating in all aspects of the business it conducts.

Kaushalya Logistics IPO details

The IPO of Kaushalya Logistics comprises a fresh issue of 33,80,000 shares aggregating up to ₹25.35 crore and an Offer for Sale (OFS) of 15,00,000 equity shares aggregating up to ₹11.25 crore from promoters, as per Red Herring Prospectus (RHP). The IPO issue size of Kaushalya Logistics is ₹36.60 crore.

The Company plans to use the net proceeds for general corporate purposes, funding the Company's working capital needs and repaying the unsecured loan.

The Registrar for the IPO of Kaushalya Logistics is Skyline Financial Services Private Ltd and the Book Running Lead Manager is Khandwala Securities Limited. Nikunj Stock Brokers is the market maker for the IPO of Kaushalya Logistics.

Uddhav Poddar, Managing Director, Kaushalya Logistics Limited, said, “This IPO marks a crucial milestone in the growth journey of Kaushalya Logistics Limited. Our strategic positioning in key sectors reflects a vision aimed at unlocking new opportunities.

Capital raised through this offering will be used to repay unsecured loans and meet working capital requirements. Our evolution as an integrated logistics, clearing and freight forwarding (C&F) provider strengthens our commitment to providing comprehensive solutions in the industry.”

Kaushalya Logistics IPO Subscription Status

The subscription status for Kaushalya Logistics IPO is 390.88 times on Day 4. The issue received positive response from retail investors whose share was subscribed 375.44 times and non-institutional buyers whose share was subscribed 847.88 times, according to data on chittorgarh.com. Buyers from qualified institutions subscribed 92.62 times.

According to chittorgarh.com, the company has received offers for 1,29,09,88,800 shares against 33,02,800 shares offered.

Kaushalya Logistics IPO subscription status was 45.46 times on the second day and SME IPO was subscribed 10.12 times on the first day. Kaushalya Logistics' IPO subscription status was 141.82 times on the third day.

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Kaushalya Logistics IPO GMP today

Kaushalya Logistics IPO GMP today or gray market premium is +55, lower than previous session of +60. This suggests that Kaushalya Logistics share price was trading at a premium of ₹55 on the gray market, according to investorgain.com.

Taking into account the upper end of the IPO price range and the current premium in the gray market, the estimated listing price of Kaushalya Logistics shares is ₹130 per piece, which is 73.33% higher than the IPO price of ₹75.

Based on the gray market activity of the last 11 sessions, IPO GMP is pointing higher today and expects a strong listing, according to analysts at investorgain.com. The lowest GMP is ₹0, while the highest is GMP ₹60.

“Gray market premium” indicates investors’ willingness to pay more than the issue price.

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Evaluation of Kaushalya Logistics IPO

Dilip Davda, editor at Chittorgarh, claims that the company is into real estate, e-commerce and logistics services. These are all very competitive and dispersed markets. Looking at the annual earnings for FY24, it appears that the issue is fully priced in. The increased debt is a cause for concern.

“With good prospects for infrastructure development and higher cement consumption, this specialized service company looks forward to a bright future. With the new awards in the pipeline, management is confident of improving its performance. Investors can park funds for medium-term long-term benefits,” said Dilip Davda.

Also Read: Kaushalya Logistics IPO sets price range ₹71-75 per share, GMP, issue details, key dates, more

Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not Mint. We recommend investors consult certified experts before making an investment decision.

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