In a significant development, Kahan Packaging (NYSE:PKG) Ltd's initial public offering (IPO) listed on the BSE SME platform today at a premium. The shares were listed at ₹152 ($1 = ₹83.05), marking a 90% increase from the issue price of ₹80. The company, which provides bulk packaging solutions to diverse industries, had opened its IPO for subscription on Wednesday, September 6, and closed on Friday, September 8.
The IPO was a fresh issue worth ₹5.76 crore (₹1 crore = $120,409.32), with no offer for sale component. The proceeds from the offering are earmarked for meeting working capital requirements and general corporate purposes. Hem Securities Ltd served as the book-running lead manager for the issue, while Purva Sharegistry was the registrar.
Kahan Packaging's IPO saw an overwhelming response from investors. On the final day of subscription, it was oversubscribed by 730.45 times, according to chittorgarh.com. On the first day of subscription, it was subscribed 55.40 times and saw a subscription rate of 175.99 times on day two.
The company had reserved 40,000 equity shares for the market maker in its IPO and divided the remaining 680,000 shares equally among retail investors and high net-worth individuals (HNIs) with a 50:50 ratio. Retail investors subscribed 1,044.8 times their allotted quota, while HNIs and other investors subscribed 416.2 times their reserved portion.
The grey market premium (GMP) for Kahan Packaging's IPO remained consistent at +72 over the last 12 trading sessions prior to listing, indicating investors' readiness to pay more than the issue price.
Kahan Packaging Ltd is a business-to-business (B2B) manufacturer providing bulk packaging solutions to various industries including agro-pesticides, cement, chemical, fertiliser, and food products. Today's listing saw the company's share price hit an intraday high of ₹159.60, reflecting a nearly 100% increase post-listing.
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