Kaushalya Logistics IPO: A Comprehensive Overview

Kaushalya Logistics IPO: A Comprehensive Overview

VoM News Desk | January 1, 2024 | 02:22 PM IST | Breaking News | Follow on Google News

Kaushalya Logistics IPO: A Comprehensive Overview

Kaushalya Logistics IPO: A Comprehensive Overview

Kaushalya Logistics IPO, open from December 29 to January 3, offers shares within a price band of ₹71 to ₹75 per share. The lot size is set at 1,600 shares, allowing bids for a minimum of 1,600 shares and multiples thereof. The company has allocated 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Investors.

The IPO basis of allotment is set for January 4, with refunds initiated on January 5. The shares are anticipated to be credited to demat accounts on the same day and will likely be listed on NSE SME by January 8.

Kaushalya Logistics, an integrated logistics and C&F services provider, operates in three verticals – handling logistical support for Dalmia Cement Bharat Limited, retail and e-commerce of electronics and white goods, and owning/leasing commercial shops in Udaipur.

The IPO consists of a fresh issue of 33,80,000 equity shares and an offer for sale of 15,00,000 equity shares by promoters, totaling ₹36.60 crore. The company aims to utilize the net proceeds for general corporate purposes, working capital needs, and loan repayment.

The subscription status indicates a positive response, with 25.01 times subscription so far on day 2. Retail investors’ portion is subscribed 39.50 times, non-institutional buyers at 23.64 times, and Qualified Institutions buyers at 2.02 times.

Currently, the grey market premium stands at +55, suggesting a trading premium of ₹55. Analysts anticipate a potential listing at ₹130 apiece, 73.33% higher than the IPO price of ₹75.

However, some analysts raise concerns about the competitive nature of the company’s sectors and increased debt. Dilip Davda suggests cautious optimism, citing potential gains from infra push and increased cement consumption but advises investors to consider medium to long-term rewards.

The IPO presents a lucrative opportunity but demands a thorough assessment of the risks associated with the company’s varied operations and financial positioning.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.