Kanishk Aluminium IPO: A Strategic Bet on the 'Blue City's' Industrial Growth?
Kanishk Aluminium India Limited, a Jodhpur-based manufacturer of aluminium extrusions and the name behind the premium "Baari" brand, is currently live with its ₹29.20 crore IPO. With the bidding closing tomorrow, January 30, this post analyzes the company's transition to a debt-free balance sheet, its growing presence in the solar and architectural sectors, and the current flat GMP status.
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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 / Detail | Status / Date |
|---|---|
| Bidding Period | Jan 28 – Friday, Jan 30, 2026 |
| IPO Price | ₹73 per share (Fixed) |
| Market Lot Size | 1,600 Shares |
| Minimum Retail Investment | ₹2,33,600 (Minimum 2 Lots / 3,200 shares) |
| Total Issue Size | ₹29.20 Crore (100% Fresh Issue) |
| Allotment Date | Monday, February 02, 2026 |
| Listing Date | Wednesday, February 04, 2026 |
| Listing Exchange | BSE 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.