Kanishk Aluminium India IPO Makes Weak Debut with 20% Discount, Lists at ₹58.40 Against Poor 1.04x Subscription

Kanishk Aluminium India Ltd, a Jodhpur-based company incorporated in 2022 engaged in manufacturing comprehensive range of aluminium extrusion products, including electronics, automotive, solar, furniture, transport, electrical, and architecture through diverse and customised aluminium profile solutions with product portfolio including solid and hollow section profiles, solar profiles, heatsinks, railings, sliding/fixed window and door profiles, channels, sections, flat bars, tubes, kitchen profiles, railing systems, and other customised architectural applications, made a weak debut on BSE SME on Wednesday, February 4, 2026. After closing its IPO bidding between January 28-30, 2026, the company commenced trading with a steep discount of 20% opening at ₹58.40 and hit lower circuit at ₹55.48 (down 24% from issue price).

Kanishk Aluminium India Listing Details

Kanishk Aluminium India launched its fixed price IPO at ₹73 per share with minimum investment of 3,200 shares costing ₹2,33,600. The IPO barely scraped through with subscription of only 1.04 times - individual investors at 1.86 times, NII severely undersubscribed at 0.23 times.

First-Day Trading Performance

Listing Price: Kanishk Aluminium India opened at ₹58.40 representing steep discount of 20% from issue price of ₹73.00, quickly hit lower circuit at ₹55.48 (down 24%), with VWAP at ₹56.31, reflecting extremely negative market sentiment with severe opening discount followed by immediate lower circuit hit creating massive investor losses with market capitalisation declining to ₹74.57 crore against pre-IPO market cap of ₹98.11 crore and turnover of only ₹6.30 lakh with traded volume of merely 0.11 lakh shares.

Growth Drivers and Challenges

Growth Drivers:

Diverse Product Range: Wide range of aluminium extrusion products including solid and hollow section profiles, solar profiles, heatsinks, railings, window and door profiles, engineering products, and architectural solutions serving electronics, automotive, solar, furniture, transport, electrical, and architecture sectors.

Customization Capabilities: Flexibility and market agility in providing customised aluminium profile solutions with various finishes, tolerances, and tempers catering to diverse client requirements.

Financial Metrics: ROE of 29.21%, ROCE of 19.92%, improved PAT margin of 17.62%, EBITDA margin of 33.55% in recent period.

Challenges:

Severe Market Rejection: IPO barely subscribed at 1.04 times with NII severely undersubscribed at 0.23 times and only 1,178 applications, opening discount of 20% followed by lower circuit at 24% down creating massive investor losses demonstrating complete market rejection.

Window Dressing Concerns: Analyst notes boosted profits from FY25 onwards appears window dressing to fetch fancy valuations for IPO with almost static top lines (₹59-60 crore range for FY23-FY25) and inconsistent bottom lines.

High Leverage: Debt-to-equity ratio of 1.37 with total borrowings of ₹25.55 crore against net worth of ₹18.72 crore indicating significant financial leverage, significant promoter dilution from 99.99% to 70.24% post-IPO.

Small Scale Operations: Small company with only 46 employees, modest revenue base, tiny issue size of ₹29.20 crore.

Utilisation of IPO Proceeds

Debt Repayment: ₹19.50 crore for repayment/prepayment of certain borrowings availed by the company representing largest allocation strengthening balance sheet.

Branding and Promotion: ₹0.80 crore for branding and promotion of company brand 'Baari by Kanishk' enhancing market presence.

General Corporate Purposes: ₹4.32 crore for general corporate purposes.

Financial Performance

Revenue: ₹29.25 crore for 5 months ended August 2025, ₹60.13 crore for FY25, almost static from ₹59.54 crore in FY24 and ₹59.68 crore in FY23.

Net Profit: ₹2.15 crore for 5 months FY26, ₹3.04 crore in FY25, growth from ₹1.52 crore in FY24 and ₹1.76 crore in FY23, demonstrating inconsistent profitability with post-IPO EPS of ₹3.84 and P/E of 19.03x.