There is tremendous enthusiasm around IPOs. There is also a perception that IPOs easily show profits. Recently, several IPOs have given huge profits, leading to widespread discussion on the matter. However, the amount of losses from investing in IPOs is also not insignificant. KSH International put investors at a loss as soon as it got listed on December 23.
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The share got listed 4 per cent lower than the IPO issue price. The issue price was ₹384, and it got listed at ₹370 on NSE and BSE on this day. The grey market trend had also indicated the same. Just before listing, KSH International's GMP (Grey Market Price) was -₹2.
KSH International IPO:
This IPO's subscription was open from December 16-18. Initially, the IPO was brought to raise ₹710 crore. Of this, ₹420 crore was a fresh issue. The Offer for Sale (OFS) was ₹290 crore. This IPO received only 83 per cent subscription.
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At that time, SEBI took several steps so that the subscription would at least touch 90 per cent. For this, several options were given by SEBI. These included: 1. The Offer-for-Sale (OFS) size would be reduced. 2. The subscription time would be extended. 3. The price band would be reduced. If none of the options were agreed to, the IPO would have to be withdrawn, and the money returned to all investors.
The company chose the first option. After this, the company reduced the OFS portion. Earlier, it was ₹290 crore, it became ₹224.4 crore. The fresh issue was not reduced. After this step, KSH International's subscription rate touched 90 per cent.
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