KSH International IPO Subscribed 83%, GMP Flat Ahead of Listing

Introduction to KSH International IPO

The allotment for the KSH International Ltd. Initial Public Offering (IPO) has been finalized following the closure of its subscription period on December 18, 2025. The ₹710 crore mainboard issue received a subdued response from investors, failing to achieve full subscription. With the allotment now complete, all eyes are on its stock market debut scheduled for December 23, 2025. The current Grey Market Premium (GMP) indicates a flat listing, reflecting the cautious sentiment surrounding the issue.

Detailed Subscription Status

The IPO was subscribed 0.83 times overall, indicating that the total bids received were less than the total shares on offer. The response varied significantly across different investor categories. While Qualified Institutional Buyers (QIBs) showed moderate interest, the retail and non-institutional segments remained undersubscribed. This lukewarm participation suggests that investors may be adopting a wait-and-watch approach, possibly due to market conditions or valuation concerns.

The QIB portion being fully subscribed is a positive sign, as it reflects confidence from institutional investors. However, the low participation from retail and High Net Worth Individuals (HNIs) weighed down the overall subscription figures.

Grey Market Premium (GMP) Analysis

As of the latest updates, the Grey Market Premium (GMP) for KSH International IPO is ₹0. The GMP is an unofficial indicator of the premium investors are willing to pay for shares before they are listed on the stock exchanges. A zero GMP suggests that the shares are trading at their issue price in the grey market, pointing towards a likely flat listing without any significant gains or losses on debut. The GMP had briefly touched ₹6 earlier but cooled off as the subscription period progressed, aligning with the muted demand.

Key IPO Details at a Glance

The IPO was a combination of a fresh issue of shares and an Offer for Sale (OFS) by existing shareholders. The funds from the fresh issue are intended for strategic corporate purposes, including debt reduction and capital expenditure.

How to Check Allotment Status

Investors who applied for the IPO can verify their allotment status through the official registrar, MUFG Intime India, or via the websites of the stock exchanges, BSE and NSE. To check the status, applicants will need their PAN card number, application number, or DP ID. If shares have been allotted, they will be credited to the demat account by December 22, 2025. For unsuccessful applicants, refunds will also be initiated on the same day.

Company Financial Performance

KSH International has demonstrated strong financial growth in recent years. Between the financial years 2024 and 2025, the company's revenue grew by 39%, while its profit after tax (PAT) surged by an impressive 82%. This robust performance highlights the company's operational efficiency and growing market presence. The company is a prominent manufacturer and exporter of magnet winding wire, serving high-growth sectors like power, railways, and automotive.

Objectives of the Issue

The net proceeds from the fresh issue component of the IPO are primarily intended for strengthening the company's financial position and funding its expansion plans. The key objectives include:

1. Repayment of Borrowings: A significant portion, approximately ₹226 crore, will be used to repay certain company borrowings, which will reduce debt and improve the debt-to-equity ratio.
2. Capital Expenditure: Around ₹87 crore is allocated for purchasing and setting up new machinery at two of its manufacturing plants.
3. Green Energy Initiative: The company plans to invest ₹8.8 crore to set up a rooftop solar power plant, promoting sustainable energy usage.
4. General Corporate Purposes: The remaining funds will be utilized for general corporate needs.

Listing Day Expectations and Conclusion

Given the undersubscription and a flat GMP, the market expects KSH International to have a neutral debut on the stock exchanges. A listing at or near the issue price of ₹384 is the most probable scenario. While the IPO may not deliver immediate listing gains, the company's strong financial track record and strategic use of funds for debt reduction and expansion could make it a candidate for long-term investment. Investors should base their decisions on the company's fundamentals and their individual risk appetite rather than short-term market sentiment.