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The company’s IPO was open for public subscription from Tuesday, September 12, 2023, and closed on Friday, September 15, 2023. The public offer comprised a fresh issue of 2,772,000 shares aggregating up to Rs 25.22 crore ($3.38 million), with a face value of Rs 10 per share. Investors were allowed to bid for a minimum of 1200 shares and in multiples thereof.
The IPO was subscribed 42.27 times, indicating strong investor interest. The portion for non-institutional investors received a 35.68-time subscription, while the Retail Individual Investors (RIIs) quota was subscribed 44.13 times.
Despite the lukewarm listing, Kundan Edifice has demonstrated robust financial performance in the recent past. The company reported a net profit of Rs 5.13 crore ($688k) for the year ended FY23, a significant increase from Rs 1.67 crore ($224k) in the previous year. Similarly, revenue from operations during the same period jumped to Rs 60.22 crore ($8.07 million) from Rs 32.47 crore ($4.36 million).
Kundan Edifice intends to use the net proceeds from the IPO for meeting incremental working capital requirements and general corporate purposes. Incepted in 2014, the company is primarily an original design manufacturer (ODM), designing, developing, manufacturing, and supplying products to customers who then distribute these products under their own brands. Kundan Edifice is known for its specialized focus on LED strip light production, boasting technologies not previously present in India.
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