The IPO, which opened between September 26 and 30, was priced at Rs 56 per share. It was a book-built issue entirely comprising a fresh issue of 49.7 lakh equity shares. The retail quota was subscribed 2.6 times, while the QIB segment saw a stronger 6.03 times participation, signaling institutional interest despite the subdued grey market sentiment.
Business overview
KVS Castings manufactures cast iron, SG iron, alloy steel, and stainless steel castings, catering to the automobile, locomotive, and engineering sectors. Its product range includes suspension brackets, brake drums, gearbox housing, oil filters, and pump bodies, serving as critical components for automotive and industrial systems.The company’s customers include leading OEMs and tier-1 suppliers. With an in-house tooling facility and a plant strategically located in North India, KVS Castings provides end-to-end casting solutions.
Financial performance
While KVS Castings’ revenue declined 8% in FY25 to Rs 50.43 crore, its profit after tax rose 11% to Rs 6.63 crore, supported by better cost control and improved margins. The company’s EBITDA margin stood at 19.65%, and PAT margin at 13.22%, reflecting healthy operational efficiency.
Use of proceeds
The company plans to utilize Rs 21.5 crore of the IPO proceeds for capital expenditure, primarily for upgrading and expanding its manufacturing facilities, while the remaining funds will go towards general corporate purposes.
Post-listing outlook
KVS Castings is a niche player in a competitive and cyclical industry, where growth will depend on auto and engineering sector demand. While the company has shown margin stability, its declining topline and small equity base could cap near-term upside.
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