KP Green Engineering Lists at 39% Premium at Rs 200 per share on BSE

KP Green Engineering is engaged in the manufacturing of fabricated and hot-dip galvanised steel products, offering a diverse range of products, debuted on the Indian stock market today.

The stock of KP Green Engineering opened at Rs 200 per share on the BSE, indicating an impressive 38.89% premium over the final issue price of Rs 144 per share. The market capitalisation on the BSE stands at Rs 1000 crore.

IPO Proceeds

The company aims to use the Net Proceeds from the Fresh Issue for Part financing the capital expenditure towards setting up a new manufacturing unit to expand its current production capabilities and expand the current product portfolio and for General corporate purposes.

Business Overview

KP Green Engineering Limited specialises in the manufacturing of fabricated and hot-dip galvanised steel products, offering a diverse range including lattice tower structures, substation structures, solar module mounting structures, cable trays, earthing strips, and beam crash barriers. Providing end-to-end solutions, the company ensures custom-made solutions by integrating in-house fabrication and hot dip galvanizing facilities. Situated in Gujarat, the company’s expansive manufacturing facility and is fully equipped with CNC machinery and equipment.

Subscription details

On March 19, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 29.50 times. The public issue received remarkable interest, with the retail category being subscribed 20.12 times, while the QIB and NII categories reached a subscription rate of 31.86 and 48.23 times respectively.

The IPO price band was Rs 137 and Rs 144, with a face value of Rs 5 per share and a lot size of 1000 shares. The total size of the company’s IPO was Rs 189.50 crore, and the final share issue price was fixed at Rs 144 each.

Conclusion

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 39% on the listing day itself and can choose to book the profit it has generated. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.