**Kanishk Aluminium Lists at Steep Discount, Hits Lower Circuit on Debut** Kanishk Aluminium India Limited faced a challenging market debut today, February 4, 2026, listing significantly below its issue price. The stock began trading on the BSE SME platform at **₹58.40**, marking a sharp **20% discount** against the fixed issue price of **₹73**. **Immediate Selling Pressure** Sentiment remained weak immediately after the opening bell. The scrip failed to sustain its listing level and quickly succumbed to heavy selling pressure. Within minutes of the debut, the stock slid further to hit the **5% lower circuit** limit, locking in at **₹55.48**. For investors who were allotted shares in the IPO, this translates to an unrealized loss of approximately **24%** from their initial investment on the very first day. The lack of buying interest was evident as the stock remained stuck at the lower price band with pending sell orders and negligible buyers. **Weak Subscription Signal** The tepid listing performance mirrors the sluggish demand seen during the subscription phase. The **₹29.20 crore** public offer, which was open from January 28 to January 30, was subscribed just **1.04 times** overall. Breakdown of the demand showed a clear divide in investor confidence. While retail investors showed some interest, subscribing their portion **1.86 times**, the Non-Institutional Investor (NII) category was significantly undersubscribed at just **0.23 times**. This absence of wealthy and institutional capital often signals caution to the broader market, which played out in today's price action. **Financial Backdrop and Valuations** Kanishk Aluminium, a Jodhpur-based manufacturer incorporated in 2022, specializes in aluminium extrusion products for sectors including automotive, solar, and architecture. Financially, the company reported revenue of **₹60.13 crore** and a Profit After Tax (PAT) of **₹3.04 crore** for the fiscal year ended March 2025. This reflected a net profit margin of roughly **5.09%**. While profitability showed improvement over the previous year, the flat revenue growth curve appears to have dampened investor enthusiasm. The IPO valuation was pegged at a P/E multiple of roughly **22.67x**, which market participants evidently found unattractive given the company's financial scale and sector risks. **IPO Structure and Utilization** The issue was entirely a fresh issue of **40 lakh equity shares**, with no Offer for Sale (OFS) component. The company aims to utilize the proceeds primarily for debt reduction, specifically repaying or prepaying borrowings amounting to **₹19.50 crore**. Additional funds are allocated for branding initiatives for its 'Baari' product line and general corporate purposes. **Market Sentiment** The negative listing of Kanishk Aluminium highlights a broader trend of selectivity in the SME IPO segment. Investors are increasingly scrutinizing fundamentals and avoiding companies with low subscription figures or weak grey market signals. The lack of a "listing pop" today serves as a reminder of the risks inherent in the high-beta SME space, particularly when institutional participation is minimal. Traders will now closely monitor the counter for any signs of liquidity or a reversal in the coming sessions, though the locked lower circuit suggests that selling pressure may persist in the immediate term.