Kahan Packaging IPO Oversubscribed 690
The initial public offering (IPO) of Kahan Packaging, a Mumbai-based bulk packaging solutions provider, was subscribed 690 times on the final day of bidding, setting a new record for SME IPOs in India.
The IPO opened on September 6 and closed on September 8. The company offered 7.2 lakh shares at a price of Rs 80 per share. The retail portion of the IPO was subscribed 1,044.8 times, while the non-retail portion was subscribed 416.2 times.
The total amount raised by the IPO is Rs 5.76 crore. The company will use the proceeds to expand its manufacturing capacity, repay debt, and fund working capital requirements.
Kahan Packaging is a leading manufacturer of woven sacks for a variety of industries, including food grains, agricultural products, spices, fertilizers, and cement. The company has a strong track record of growth and profitability. In the financial year 2022-23, the company’s revenue grew by 20% to Rs 180 crore.
The strong subscription to the IPO is a positive indicator of the growth prospects of the SME sector in India. It reflects the confidence of investors in the ability of small and medium-sized businesses to generate strong returns.
The following factors contributed to the high subscription of the Kahan Packaging IPO:
- The company’s strong track record of growth and profitability.
- The growing demand for packaging solutions in India.
- The IPO’s attractive valuation.
- The strong interest from retail investors, who are increasingly seeking investment opportunities in small and medium-sized businesses.
The successful listing of Kahan Packaging is a positive development for the SME sector. It will encourage other small and medium-sized businesses to go public and raise capital to fund their growth plans.
In addition to the factors mentioned above, the following factors also contributed to the high subscription of the Kahan Packaging IPO:
- The company’s strong management team with a proven track record.
- The company’s focus on innovation and sustainability.
- The company’s commitment to corporate social responsibility.
The Kahan Packaging IPO is a significant milestone for the SME sector in India. It is a testament to the growing maturity and sophistication of the Indian capital markets. It is also a sign of the confidence that investors have in the future of small and medium-sized businesses in India.
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