Kundan Edifice IPO: Opening on September 12, Aiming to Raise Rs 25.22 Crore
Kundan Edifice IPO
The Kundan Edifice IPO is poised to create investment opportunities when it opens for subscription on September 12.
This upcoming IPO is part of the Small and Medium Enterprises (SME) segment and is set at an offer price of Rs 91 per share. Kundan Edifice is in the process of raising Rs 25.22 crore through this IPO, providing investors with an opportunity to be a part of its growth journey. Here are the key details and insights regarding this IPO:
IPO Specifics
Subscription Dates
The Kundan Edifice IPO is scheduled to open for subscription on September 12 and will remain open until September 15. This timeline allows investors a window of opportunity to participate in the offering.
Offer Price
The company has fixed an offer price of Rs 91 per share for the IPO. This price point is a crucial consideration for investors, as it influences the valuation and potential returns associated with the IPO.
Fundraising Target
Kundan Edifice aims to raise Rs 25.22 crore through this IPO. The capital raised will play a significant role in supporting the company’s growth plans and strategic initiatives.
Listing Date
As per the IPO schedule, the company’s shares are slated to be listed on NSE Emerge on September 26. This listing date marks a significant milestone for the company and its investors.
IPO Allocation and Lot Size
Lot Size
Investors participating in the Kundan Edifice IPO will need to adhere to a minimum lot size requirement. The lot size is set at 1,200 shares.
This implies that investors can subscribe to the IPO by purchasing shares in multiples of 1,200. For retail investors, this translates to a minimum investment of Rs 109,200, assuming the offer price of Rs 91 per share.
Market Maker Reservation
Kundan Edifice has reserved 1.41 lakh equity shares worth Rs 1.29 crore for the market maker. This allocation ensures the participation of market makers and enhances market liquidity.
Retail and HNI Allocation
In terms of allocation, half of the ‘net issue,’ which amounts to 20.3 lakh shares worth Rs 23.94 crore (excluding the market maker portion), is reserved for retail investors. The remaining 50 percent is earmarked for High Net Worth Individuals (HNIs).
Utilization of Funds
Understanding how the company intends to use the funds raised through the IPO is a crucial aspect for investors. Kundan Edifice, based in Mumbai, plans to allocate Rs 15.45 crore of the net fresh issue proceeds for incremental working capital needs.
This allocation underscores the company’s focus on sustaining and expanding its operations. Additionally, the remaining Rs 6.08 crore will be utilized for general corporate purposes.
Important Dates
To navigate the various stages of the IPO, it’s essential for investors to be aware of key dates:
- Allotment Date: The allotment of shares to successful investors is scheduled for September 21. This is when investors will learn how many shares they have been allocated.
- Share Transfer: Equity shares will be transferred to the demat accounts of eligible investors by September 25. This step marks the ownership transition of shares from the IPO to investors’ accounts.
- Refund Process: Unsuccessful investors who do not receive an allotment will receive their refund by September 22. This ensures a streamlined process for returning the subscription amount to investors who do not receive shares.
Company’s Financial Performance
A critical aspect of assessing an IPO is reviewing the company’s financial performance and its growth trajectory. Kundan Edifice, a manufacturer of light emitting diode (LED) strip lights, reported noteworthy financial results for the financial year ending in March FY23.
During this period, the company achieved a net profit of Rs 5.13 crore, a substantial increase from Rs 1.67 crore in the previous year.
Additionally, revenue from operations grew significantly, rising from Rs 32.47 crore to Rs 60.22 crore during the same period.
Kundan Edifice operates as an Original Design Manufacturer (ODM), specializing in designing, manufacturing, and supplying products to customers.
The company also distributes these products under its own brand. With over six years of experience in the Electronics Manufacturing Services (EMS) industry, Kundan Edifice has established itself as a reputable player in the market.
It is worth noting that over 65 percent of its business in FY23 was derived from repeat customers, highlighting its commitment to customer satisfaction and loyalty.
Final Thoughts
The Kundan Edifice IPO offers investors an opportunity to become part of a growth-oriented company operating in the electronics manufacturing sector. With a robust financial performance, a clear plan for fund utilization, and a focus on customer satisfaction,
Kundan Edifice presents a compelling investment opportunity. However, as with any investment, prospective investors should conduct thorough due diligence, assess their risk tolerance, and consider their financial objectives before participating in the IPO.
Please note that the information provided in this expanded article is based on the details available up to the knowledge cutoff date in September 2021.
Any developments or changes related to the Kundan Edifice IPO that occurred after this date would not be included in this article.
Therefore, readers are encouraged to seek the latest information and updates from reliable financial sources and regulatory authorities before making investment decisions.
