Kalana Ispat Limited IPO Message Board (Page 4)

Looks another shell company trying to catch easy money from the capital markets. Avoiding FF

I think afte the Trafiksol fiasco and SEBI warnings, people are reading too much into the news and DHRPs and refraining from subscription.

If you google "Ashwamegh avenue mithakhali ahmedabad" then you see full address with society name which is not present in CG. Fill in blanks is another reason to avoid for me.

2HJ8+9JX, Near Mithakhali Six Road, Underbridge Navrangpura, Sardar Patel Rd, ______ Society, Navrangpura, Ahmedabad, Gujarat 380009

Financials are not good. IPO is at 36 PE is costly.
AVOIDING this irrespective of any GMP or subscription.

I do not find much image of this company. Then i searched using building address and i found this.
( I started doing this research after viral images of boss packaging where i applied and poor images went viral.)

I do not have risk taking capability and hence avoiding. Some find this il-logical but this is my thought process as retail investor.

"Ispat" naam dekh ke hi aisa negative feeling aa raha hai, thought no corelation, but this name is very negative for my portfolio.

Avoiding it for fundamental reasons.

Very low profits - Rigged books - Taking a look at the name of the promoters... looks like this company is a total scam.

Last four data
43 Cr Revenue ... 13.32 lakh Net profit
57.9 Cr revenue ... 13.66 lakh Net profit
Now Ipo plan Started
83 Cr Renenue ..50 Lakh Net profit
73.94 Cr Revenue .... 236 lakh profit
Decling sales with 5 times NP
Applying by looking at GMP should be avoided, Fundamentals should be kept in mind. When there is listing Lower circuit starts, everything wipes out.

If we go by the MM, there is promise but as we look into the LM and its underwriting 85% of issue and past record, things turn. Only 3% issue expenses does not mean positive outright given how the LM is itself getting into the shoes of promoters. Fixed price issue without QIB.

Co. is into using scrap metal to make steel billets that get sold in turn to steel mills. Entirely B2B and mostly oeprating in Gujarat. Even though this line of biz does not need any expertise, the promoter group actually have none of such expertise that is worth highlighting but have been in the biz for quite some time. Operating at around 82% of 38K MT capacity in only one night shift a day.
Around 18 employees on payroll. Top 5 customers contribute around 75% revenue.

IPO proceeds around 23 cr are used for Solar Power plant effective to be functional by FY 25 end. As per mgmt estimates this will add around 3 cr to PAT. Around 71% manufacturing revenue and 29% trading revenues. FY24 revenue has degrown primarily due to fall in manufacturing revenue. PAT margins in IPO year are around 3.1% when earlier they used to be around 1%. 8 cr is for additional capex to add rolling mills which will aim to diversify the company's products and boost these margins. Only volume growth can help generate more bottom line until this capex gets effective whichs should be around 6 months from now. Steel prices can further cause fluctuations to the company, which is why there is only 15-20 days orders taken by mgmt.

IPO Price is at 36 P/E considering the inflated IPO Year balance sheet with trade receivables adjusted. As per FY23 on face this looks even worse at 171 P/E. However, assuming the solar power savings, this reduces to 17 P/E but cannot be trusted solely on basis of mgmt commentary. Peers trade in the range of 25-30 P/E.

The pricing has left very little considering the current stage. But the lead manager using his promotion tactics is literally forcing data to be read to arrive at that reduced valuations considering the future. Solar is the go-to issue objective, whether intentional or unintentional. Sector has no entry barriers and company has no bargaining power. Issue size is large considering only RII and NII but LM has managed QVC Exports recently of similar size and just the same set of trading activities. Keeping luck aside, this does not look investable as per the practices visible by LM and lack of interest by mgmt in short term. There might be some growth triggers after the commissioning of the steel roll mills, which is only happening in medium term.

When the lead manager becomes promoter, discount listings happen !!

Listing KIL all the investor who applied at random single application as not getting allotment in other SMEs just to check luck of allotment . Disclaimer Not applied here,

Considering the experience and performance of LM, company's financials and niche, I'll "AVOID" this ipo. 🙏🏻

Hi All,
Till what time can I apply for SME IPO on the last day? I am using zerodha kite for IPO application.

If its retail category, you will have time upto 4:30pm in Zerodha to apply. Once applied, UPI mandate to be accepted by 5pm.

Whatever may be the GMP , this one is a big big avoid , prima facie .

St in surat 50000
Ipo money rains i sold my application

Really feeling shame to read the figures..
After venerating revenue of 40 + crores,
If they are earning income annually 0.2%, 0.3%, 0.6% then instead of doing industry business it is worth to sit at home doing nothing..
More than the owner of this company, the scrap handler standing on road might have earned more..
Its a matter of concern, that how industrialist make the govt and public fool 😞😡

​@Simply Vicky 😀😀👍

If so much issues are there, how Dilip dvuda gives May apply recommendation .

@CG experts,
If we buy today NTPC share are eligible for SHARE HOLDER quata in upcoming NTPC GREEN IPO.

​@Dugardeshi 1 share

Thanks @G profit

Prima facie , looks avoidable .

Itna profit toh normal iron trading shop se bhi aa jata hai😉😉😉🙂🙂🙂

absolutely ryt

Objects of the present issue of Equity Shares are:
a. Capital Expenditure for Installation of 4 MW DC & 3.5 MW AC Ground Mounted Solar Power Plant
b. Capital expenditure for setting up of rolling mill, purchase of equipment/machineries, other assets etc.;
c. General Corporate Purpose.

But diluting the stake close to 50%