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Kanishk Aluminium IPO: A Strategic Bet on the 'Blue City's' Industrial Growth?

Kanishk Aluminium IPO: A Strategic Bet on the 'Blue City's' Industrial Growth?

1. Who is Kanishk Aluminium India Limited?

Incorporated in 2018, Kanishk Aluminium India is a specialized manufacturer of aluminium extrusion profiles. Operating from a modern 4,000 sq. metre facility in Jodhpur, Rajasthan, the company serves as a critical supplier for industries requiring high-precision aluminium components.

Key Product Verticals:

Industrial Extrusions: Solid and hollow profiles used in solar panel frames, heatsinks for electronics, and automotive components.

"Baari by Kanishk": Launched in 2024, this premium brand focuses on high-end aluminium door and window systems, including sliding, casement, and lift-and-slide solutions.

Architectural Solutions: Railings, channels, and decorative profiles for the construction and furniture sectors.

2. Key IPO Details & Timeline

The IPO is a Fixed Price Issue, meaning the price is set at a single point rather than a range.

Event / DetailStatus / Date
Bidding PeriodJan 28 – Friday, Jan 30, 2026
IPO Price₹73 per share (Fixed)
Market Lot Size1,600 Shares
Minimum Retail Investment₹2,33,600 (Minimum 2 Lots / 3,200 shares)
Total Issue Size₹29.20 Crore (100% Fresh Issue)
Allotment DateMonday, February 02, 2026
Listing DateWednesday, February 04, 2026
Listing ExchangeBSE SME

3. Subscription Status (Day 2 Update - Jan 29)

The subscription response has been steady but cautious during the first half of the bidding window:

Overall Subscription: Subscribed ~0.20x (as of mid-day Jan 29).

Retail Category: Subscribed ~0.25x.

NII Category: Subscribed ~0.15x.

Note: Subscription numbers typically spike on the final day as institutional and HNI investors place their bids.

4. Financial Health: Stability over Explosive Growth

Kanishk Aluminium has maintained a consistent performance, with a notable jump in profitability in the last fiscal year:

Revenue: Stable at around ₹60.13 Cr (FY25), showing resilience in a competitive metal market.

Profit After Tax (PAT): Doubled from ₹1.52 Cr (FY24) to ₹3.04 Cr (FY25).

Current Momentum: Reported a PAT of ₹2.15 Cr for the first five months of FY26 (ending Aug 2025), indicating a strong trajectory for the current year.

Efficiency: Boasts a healthy ROE of 20.21% and EBITDA margins of 11.10% (FY25).

5. Strategic "Use of Proceeds"

The primary objective of this IPO is a "Balance Sheet Clean-up":

₹19.50 Cr: Repayment/Pre-payment of borrowings. Post-IPO, the company aims to be significantly deleveraged, which will reduce interest costs and boost future net margins.

₹0.80 Cr: Dedicated to the branding and promotion of "Baari by Kanishk" to capture the luxury architectural market.

Balance: Working capital and general corporate purposes.

6. Grey Market Premium (GMP) & Valuation

As of January 29, 2026, the GMP for Kanishk Aluminium stands at ₹0.

Market Sentiment: A flat GMP suggests the market currently expects a "par listing" (listing at the issue price of ₹73).

Valuation: At a P/E of ~22.6x (pre-issue) and ~19x (post-issue), the pricing is considered fair for a manufacturing SME, though it lacks the "listing pop" hype seen in some recent tech-based IPOs.

7. Conclusion: The Long-Term Industrial Play

Kanishk Aluminium is not a "quick flip" candidate based on current grey market cues. However, it is a fundamentally sound manufacturing business using IPO funds to become debt-free. Investors interested in the Solar and Infrastructure themes—where aluminium demand is projected to grow at a CAGR of 7-9%—may find value in its post-listing performance.