Another listing, another multibagger! After 700x subscription, this SME IPO delivers 100% returns on debut

Keeping in line with the recent trend of SME IPOs turning multibaggers on listing day, shares of Kahan Packaging have delivered 100% returns to investors on debut.

The stock listed at a 90% premium of Rs 152, against an issue price of Rs 80. Post the listing, the shares further rallied another 5% and were locked in the upper circuit, taking the total returns to 100% on the first day.

The initial public offer (IPO) of Kahan Packaging saw the highest-ever subscription in the SME segment as the issue received bids for 700 times the offer size.

The IPO was entirely a fresh equity issue of up to 7.2 lakh equity shares, aggregating up to Rs 5.76 crore.

The company is engaged in the business of manufacturing and supplying polypropylene woven fabric-laminated, polypropylene woven sacks, PP woven bags, PP woven bags with liner, printed laminates for flexible packaging, woven polymer-based products of different weights, sizes, and colors as per customer’s specifications.

In India, packaging is the fifth largest sector in its economy and is one of the highest-growth sectors in the country. According to the Packaging Industry Association of India (PIAI), the sector has grown at a CAGR of 22% in the last few years.

The company proposes to utilise the net proceeds from public offer to meet working capital requirements and other general corporate purposes.

For the year ending March 2023, the company's net profit rose sharply to Rs 1.03 crore from just Rs 19 lakh in the year-ago period. On the other hand, revenue from operations increased 10% to Rs 17.51 crore.

Hem Securities was the lead manager to the issue, while Purva Sharegistry was the registrar.

SME IPOs are having a blast on the Street with some never-seen-before listings and subscription numbers. Out of the 105 SME IPOs that got listed on

Dalal Street so far in the calendar year 2023, a majority of 84 have given positive returns, according to data sourced from Primedatabase.

Out of them, 41 have turned multibaggers with the highest return going up to 357%.