The Rs 29.20 crore IPO of Kanishk Aluminium was a fixed-price issue and was open for subscription from January 28 to January 30. The issue was subscribed just about 1.04 times overall, reflecting modest investor interest. Retail investors subscribed their portion 1.86 times, while demand from non-institutional investors remained weak at 0.23 times. There was no qualified institutional buyer component in the issue, as is typical for many SME IPOs.
The public offer consisted entirely of a fresh issue of 40 lakh equity shares, valuing the company at around Rs 98.1 crore at the issue price. The proceeds from the IPO are proposed to be used primarily for repayment or prepayment of certain borrowings, along with spending on branding and general corporate purposes.
Jodhpur-based Kanishk Aluminium is engaged in the manufacturing of aluminium extrusion products catering to sectors such as electronics, automotive, solar, furniture, electrical and architecture. The company operates from a 4,000 square metre manufacturing facility in Rajasthan and offers a range of customised aluminium profiles, including solar profiles, heat sinks, railings, window and door profiles, and engineering sections.
Financially, the company has reported steady but uneven performance in recent years. For the period ended August 31, 2025, it reported total income of Rs 29.25 crore and profit after tax of Rs 2.15 crore. While margins improved during FY25, revenue growth has remained largely flat over the past few years, a factor that appears to have tempered investor enthusiasm for the issue.
The absence of a grey market premium, coupled with relatively low subscription numbers, suggests that investors are cautious ahead of the listing. Market participants note that SME listings can still see volatile moves on debut, but in the absence of strong demand indicators, expectations are centred around a flat to marginal listing.
Kanishk Aluminium shares are scheduled to debut on the BSE SME platform on February 4. Investors are likely to watch post-listing liquidity and execution closely, especially given the competitive nature of the aluminium extrusion segment and the company’s plans to deleverage its balance sheet using IPO proceeds.
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