K K Silk Mills share price made a weak debut on BSE SME today. K K Silk Mills share price today opened at ₹32, which is 15.79% lower than the issue price of ₹38. After listing at a discount, the stock was locked in 5% lower circuit. K K Silk Mills share price was down 20% from its IPO price.
The initial public offering (IPO) of K K Silk Mills had a subscription period that ran from Wednesday, November 26, until Friday, November 28. With a face value of ₹10, shares in the K K Silk Mills IPO are priced between ₹36 and ₹38. At least 3,000 of those shares are up for bid, and there are multiples of those shares available. K K Silk Mills IPO subscription status was 5.66 times on the last day of bidding.
K K Silk Mills Limited is engaged in the production of both fabrics and garments. The company’s offerings encompass children’s clothing, men’s apparel, and women’s attire.
They produce fabrics for a variety of items, including men’s shirts, both formal and casual wear, shervani fabric, ladies’ dress materials, burkha fabrics, and kushan cover materials.
The company provides suiting and shirting textiles, corporate attire, men’s clothing, and ready-to-wear garments that exceed customer expectations and enhance their style.
Renowned for its advanced manufacturing facility located in Umbergaon, Gujarat, the company is well-established.
K K Silk Mills operates out of its manufacturing plants in Umbergaon and Valsad, which span an area of 5,422 square feet. These units boast an installed capacity of 20 million meters for the production of fabrics and garments.
The financial results of the company indicate a growth in FY25, with revenue increasing by 16% to ₹221.43 crore, while profit has more than doubled to ₹4.68 crore. However, the comparatively low margins highlight the challenging economics that are characteristic of the textile industry.
K K Silk Mills IPO details
The BSE SME IPO represents a new offering of 7.5 million shares, with the goal of collecting ₹28.50 crore. The funds generated from this offering will be utilized for capital expenditure related to plant and machinery, inclusive of installation, and both mechanical and electrical work.
Additionally, a segment of the net proceeds is designated for repaying specific borrowings and addressing general corporate needs. As stated in the Red Herring Prospectus (RHP) for the issue, Axial Capital Pvt. Ltd serves as the book-running lead manager for the IPO, while MUFG Intime India Pvt. Ltd. acts as the registrar for the offering.
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