Kaka Industries share price hits 5% upper circuit after listing at 90% premium; details here

livemint.com:

BSE SME exchange at a premium on Wednesday. The stock was listed at ₹110.20 per share, 90 percent higher than the issue price of ₹58 on the BSE SME exchange. Kaka Industries shares extended gains and were locked at 5% upper circuit after making a stellar debut.

Kaka Industries share price closed at intraday high of ₹115.71 apiece.  Kaka Industries IPO opened on Monday, July 10, for subscription and closed on Wednesday, July 12. The price range for the proposed initial public offering has been set by the company at ₹55 to ₹58 per equity share. The SME IPO of consists of fresh issue of 3,660,000 equity shares of the face value of ₹10 aggregating up to ₹21.23 crores.

There is no Offer for Sale (OFS) component. 2,000 shares make up the Kaka Industries IPO lot size. Kaka Industries IPO day 3: Issue receives more than 268 times subscription so far on last day The company plans to use the net proceeds from the offering to achieve the following goals: general corporate purposes, prepayment and/or repayment of certain borrowings taken out by the company, repayment and/or prepayment of working capital requirements.

After the IPO, the promoter stake in Kaka Industries is expected to come down to 69.78% from 95.32% at present. The promoters of the company are Rajesh Dhirubhai Gondaliya, Bhavin Rajeshbhai Gondaliya, and Rajeshkumar Dhirubhai Gondaliya (HUF). Bigshare Services Pvt Ltd is the registrar for the IPO, and lead manager is Hem Securities Ltd.