Kataria Industries Ltd IPO: Review, Valuation, Date & GMP

Kataria Industries Limited IPO-Complete Overview

Kataria Industries Limited IPO announced by Kataria Industries Limited was established in 2004, that produces and distributes Steel Wires and Low Relaxation Pre-stressed Concrete (LRPC) Strands, Post-tensioning (PT) Anchorage Systems (Anchor Cone, Anchor Head, and Wedges), Couplers, and Aluminum Conductors made of HDPE Single-Wall Corrugated (SWC) Sheathing Ducts. Numerous industries, comprising infrastructure, roadways, bridges, bridges, subways, railways, skyscrapers, atomic reactors, LNG tanks, power transmission, and shipping lines, employ the company's extensive product line.

1.8% of India's GDP and 12% of its industrial output come from the capital goods industry. In FY22, the capital goods business was valued at US$43.2 billion on the market.

The following products are part of the company's product portfolio:
Polymer-coated grease/wax-filled LRPC Strands LRPC, Galvanized Strands Galvanized PE coated LRPC strands, LRPC strands that are specialized (19 strands and up to 23.00 mm).

The company maintains two manufacturing facilities in Ratlam, Madhya Pradesh, both of which are outfitted with the tools, equipment, and internal testing facilities needed to guarantee that our goods live up to expectations. The company exports goods to Brazil, Dubai, Qatar, Nepal, Iran, Oman, and Bahrain in addition to serving both domestic and foreign clients. The corporation had 71 permanent employees by the end of December 2023, spread across several departments.

Dear readers, we are pleased to provide details about the approaching IPO. The company plans to launch its IPO on July 16, 2024. Let's take a closer look at the IPO's offerings below.

 

Kataria Industries Limited IPO Overview

Kataria Industries IPO is an SME book-built issue of Rs.54.58 crore a wholly Fresh Issue of 56.85 lac Shares (amounting to Rs.54.58 crore) out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional-investors.

The IPO will be available to investors on July 16, 2024, and conclude on July 19, 2024. The anticipated listing date for the IPO is Wednesday, July 24, 2024, and will be held on the NSE and SME. The price range of each Share is Rs.91 to Rs.96.

If you want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

The company's revenue increased by 2.26%, while profit after tax (PAT) increased by 28.83% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year ending March 31, 2024.

• The total revenue of the company is Rs.34,148.63 lac.

• The net worth of the company is Rs.4,549.56 lac.

• The company's EBITDA is Rs.2,293.85 lac.

• The total assets of the company is Rs.12,002.84 lac.

• The company’s total Liabilities is Rs.756.50 lac.
  
  

(Amount in Lacs)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	12,002.84	15,058.73	12,787.19
Total Revenue	34,148.63	33,393.09	25,048.91
PAT	1,002.11	777.83	738.34
Net worth	4,549.56	3,584.16	2,806.33
Reserve & Surplus	3,001.58	3,320.05	2,542.21
Borrowing	6,337.11	10,696.20	9,142.29

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in Lacs)

Net Cash Flow In Multiple Activities	31 Mar 2024	31 Mar 2023	31 Mar 2022
Net Cash Flow Operating Activities	6,253.95	237.87	553.69
Net Cash Flow Investing Activities	-1,103.71	-586.27	-978.53
Net Cash Flow Financing Activities	-5,244.25	574.14	436.69

Revenue Breakdown

Product-wise Revenue Breakdown

 

The Objective Of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Capital Spending on Equipment and Plant

• Debt Repayment

• Corporate Goals in General.
  
  

 

 

Peers Of Kataria Industries Limited

(Figures as of March 31, 2023)

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Kamdhenu Ltd	10	15.23	39.76
Incredible Industries Limited	10	1.05	45.19
Bharat Wire Ropes Ltd	10	9.68	33.88

 

Evaluation

The price of this IPO is Rs.91 to Rs.96 for each Share.

Evaluation Of P/E Ratio

Considering the FY 2023-2024, with EPS of Rs.6.32 from the last year, the resulting P/E ratio is 15.18x.

Considering the weighted EPS of Rs.5.57 for the last three years, the P/E ratio is 17.23x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 39.54x.

Particulars	P/E Ratio
Highest	45.19
Lowest	33.88
Average	39.54

In simple words, the P/E ratio of Kataria Industries Limited-IPO (15.18x and 17.23x) when compared with the industry’s average P/E of 39.54x, has a undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths

• Approved supplier in various Government projects and other commercial projects.

• Internal production site equipped with a strict quality assurance system.

• The company offers a comprehensive range of products like PT anchorage and sheathing ducts along with LRPC strands.

• Broad Geographical Reach: The company has reached export revenue of 4.45%, 2.63%, and 5.68% of the total revenue for the FYs 2023–24, 2022–23, and 2021–22, respectively, and has shipped goods to Iran, Oman, Bahrain, Brazil, Dubai, Qatar, and Nepal.

• Knowledgeable promoter and capable management group 

 

IPO’s Weaknesses

• One of the main areas of concern is capital spending allocated for the purchase of machinery and equipment. Orders for the anticipated acquisition of these assets are not yet in the process of being initiated. Time and expense overruns could result from any prospective order placement delays or unanticipated difficulties with the vendors' capability to produce the machinery and equipment on time or at all.

• Any shortages, delays, or disruptions in the raw material supply that the company depends on for its manufacturing process might have a significant negative impact on the company's operations, financial health, and cash flows.

• There could be some unspecified obligations it holds, and if any of them materialize, it could harm its business and financial health.

• Because of variables beyond its control, the price of the raw materials it utilizes in its production process can fluctuate. Price increases or decreases for raw materials could materially harm the company's operations, cash flows, financial situation, and business.

• The purchases in 2021-2022 totaled Rs.19,667.14 lac, or 96.37% of its purchases; in 2022-2023 it spent Rs.27,357.14 lac or 93.42%; and in 2023-2024 Rs.22,778.64 lac or 92.54%, of its total purchases from the top 10 suppliers. The company cannot, however, guarantee that they will keep providing regularly at the same pace in the future. Any interruption in the material supply by one or more parties will harm the company's operations, profitability, and financial standing.

 

 

IPO GMP Today

Kataria Industries Limited IPO’s latest GMP is Rs.105.

Kataria Industries Limited IPO Timetable (Tentative)

The IPO is scheduled from July 16 to July 19, 2024, with allotment on July 22, refund initiation on July 23, and listing on July 24, 2024.

Events	Date
IPO Opening Date	July 16, 2024
IPO Closing Date	July 19, 2024
IPO Allotment Date	July 22, 2024
Refund initiation	July 23, 2024
IPO Listing Date	July 24, 2024

 

Kataria Industries Limited IPO Details 

The IPO with a face value of Rs.10 per Share is set to start on July 16, close on 19 July, and offer a total issue size of 5,685,000 Shares of Rs.54.58 Cr comprising a wholly fresh issue size of 5,685,000 Shares (Rs.54.58 Cr).

IPO Opening & Closing Date	July 16, 2024 to July 19, 2024
Face Value	Rs.10 per Share
Issue Size	5,685,000 Shares of Rs.54.58 Cr
Offer for Sale	NA
Fresh Issue	5,685,000 Shares of Rs.54.58 Cr
Listing at	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

Kataria Industries Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.115200 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.230400.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Kataria Industries Limited IPO Reservation

Institutional Portion	50%
Retail Share Portion	35%
Non-Institutional Portion	15%

 

 

Promoters And Management Of Kataria Industries Limited IPO

• Sunil Kataria

• Arun Kataria 

• Anoop Kataria.

Pre-Issue Promoter Shareholding	100%
Post-Issue Promoter Shareholding	0.0%

 

Kataria Industries Limited IPO Lead Managers

• Interactive Financial Services Ltd
  
  

Dividend Policy

No dividends have been paid by the company since incorporation.

Conclusion

The company has seen negative cash flow in financing activities and investing activities in the last few financial years. The company desires to use the Net Proceeds from the Issue to finance the company's Capital Spending on equipment and Plant, Debt Repayment, and Corporate Goals in General. To fulfill its objectives, the company is currently conducting an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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