KVS Castings shares to debut at present. GMP alerts cautious itemizing
The IPO, which opened between September 26 and 30, was priced at Rs 56 per share. It was a book-built concern totally comprising a recent concern of 49.7 lakh fairness shares. The retail quota was subscribed 2.6 instances, whereas the QIB section noticed a stronger 6.03 instances participation, signaling institutional curiosity regardless of the subdued gray market sentiment.
Enterprise overview
KVS Castings manufactures forged iron, SG iron, alloy metal, and chrome steel castings, catering to the car, locomotive, and engineering sectors. Its product vary contains suspension brackets, brake drums, gearbox housing, oil filters, and pump our bodies, serving as essential elements for automotive and industrial programs.The corporate’s prospects embrace main OEMs and tier-1 suppliers. With an in-house tooling facility and a plant strategically positioned in North India, KVS Castings gives end-to-end casting options.
Monetary efficiency
Whereas KVS Castings’ income declined 8% in FY25 to Rs 50.43 crore, its revenue after tax rose 11% to Rs 6.63 crore, supported by higher value management and improved margins. The corporate’s EBITDA margin stood at 19.65%, and PAT margin at 13.22%, reflecting wholesome operational effectivity.
Use of proceeds
The corporate plans to make the most of Rs 21.5 crore of the IPO proceeds for capital expenditure, primarily for upgrading and increasing its manufacturing amenities, whereas the remaining funds will go in the direction of normal company functions.
Submit-listing outlook
KVS Castings is a distinct segment participant in a aggressive and cyclical business, the place progress will depend upon auto and engineering sector demand. Whereas the corporate has proven margin stability, its declining topline and small fairness base might cap near-term upside.
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