The price band for the issue was fixed at Rs 61–64 per share, with the final issue price set at Rs 64. At this price, the company is valued at a pre-IPO market cap of about Rs 66.5 crore.
In the grey market, which often acts as an informal indicator of listing sentiment, Kasturi Metal Composite shares are currently trading at par with the issue price. A zero GMP suggests that traders are not pricing in any immediate listing gains, pointing to expectations of a flat debut.
This comes despite the IPO receiving a robust overall subscription of 17.75 times. The non-institutional investor segment was the standout, with bids worth nearly 39 times the shares on offer, while the retail portion was subscribed over 16 times. Qualified institutional buyers subscribed the issue four times. The company had also raised Rs 5 crore from anchor investors ahead of the public issue.
Kasturi Metal Composite is a Maharashtra-based manufacturer of steel fibre products used in industrial applications. Incorporated in 2005, the company produces steel wool fibre for brake pads and clutches, industrial flooring fibres and steel fibres used in infrastructure projects such as tunnels, roads, bridges and mining applications. It operates three manufacturing units in MIDC Amravati and is in the process of setting up a fourth unit.
The proceeds from the IPO are largely earmarked for capital expenditure. Around Rs 13.3 crore will be used to set up a new manufacturing facility at Amravati, with the balance going towards general corporate purposes. There is no offer-for-sale component, meaning all the funds raised will go into the company.
Financially, Kasturi Metal Composite has reported steady growth, though profitability has been somewhat uneven. For the six months ended September 2025, the company reported revenue of Rs 32.3 crore and a profit after tax of Rs 2.47 crore. For FY25, revenue stood at Rs 57.2 crore with a net profit of Rs 2.07 crore.The lack of a premium in the grey market also mirrors the broader risk-off sentiment seen in SME listings recently, where investors have become more selective and listing gains are no longer taken for granted. While strong subscription provides some comfort, the absence of grey market enthusiasm suggests that investors may be taking a cautious view and looking beyond short-term listing pop to the company’s execution on capacity expansion and earnings growth in the coming quarters.