Kaka Industries IPO To Open On July 10: Check GMP, Issue Price & Other Details

Polymer-based profiles manufacturer Kaka Industries is looking to raise Rs 21.23 crore through its initial share sale offer that opens for public subscription on July 10. The initial public offering (IPO) is scheduled to conclude on July 12. The shares of the company will be listed on BSE SME on Thursday, 20 July 2023, a platform for small and medium enterprises, the company said in a statement.

The company will issue 36,60,000 equity shares through the offer. A total of 17,32,000 equity shares (Rs 10,04,56,000) are reserved for QIB, 5,22,000 Rs 3,02,76,000) for NII and 12,14,000 shares (Rs 7,04,12,000) for RII. 1,92,000 equity shares (Rs 1,11,36,000) are reserved for market makers. The bid lot has been fixed at 2,000. The issue price for Kaka Industries IPO has been fixed at Rs 55 to Rs 58 per share and the basis of share allotment will be done on Monday, 17 July 2023.

HEM Securities Ltd is the book running lead manager to the IPO and Bigshare Services Pvt Ltd is the registrar for the IPO. Rajesh Dhirubhai Gondaliya, Bhavin Rajeshbhai Gondaliya, and Rajeshkumar Dhirubhai Gondaliya are the company's promoters.

Kaka Industries manufactures polymer-based profiles for application in doors, windows, partitions, false ceilings, wall paneling, kitchen cabinets, office furniture and other interior and exterior works. All products except WPC are non-wood based, are substitutes for wood and save trees

The company has 20k+ MT production capacity. It has 300 dealers across 20 states, UTs and 3 depots. Its product range includes more than 1200 Stock Keeping Units (SKU) in various dimensions.

In the financial year 2022-23, the company's revenue stood at Rs 158 crore of which 61 per cent came from the PVC segment. The company's net profit came in at Rs 7.18 crore.

As per the market watchers, the latest grey market premium (GMP) of Kaka Industries IPO today is Rs 38. The expected listing price for the Kaka Industries SME IPO is Rs 96 (cap price + today's GMP), taking the upper price band of Rs 58 into consideration. Hence, based on the current GMP, Kaka Industries is expected to be listed at a healthy upside premium of 65.52% over the issue price on the listing date.