Kataria Industries Limited is launching an IPO with a fresh issue of 56,85,000 shares worth INR 54.58 crores. The company aims to invest in machinery, repay debt, and support general corporate purposes.
Kataria Industries IPO – Important Dates
| Kataria Industries Limited IPO Date | July 16, 2024 to July 19, 2024 |
| Kataria Industries Limited IPO Listing Date | July 24, 2024 |
| Kataria Industries Limited IPO Price | INR 91-96 per share |
| Kataria Industries Limited IPO Lot Size | 1200 shares |
| Kataria Industries Limited IPO Total Issue Size | INR 54.58 crores |
| Kataria Industries Limited IPO Basis of Allotment | July 22, 2024 |
| Kataria Industries Limited IPO Initiation of Refunds | July 23, 2024 |
| Kataria Industries Limited IPO Credit of Shares to Demat | July 23, 2024 |
| Kataria Industries Limited IPO Issue Type | Book Built Issue IPO |
| Kataria Industries Limited IPO Listing At | NSE SME |
Kataria Industries Limited IPO – Company Profile
Kataria Industries Limited specializes in Low-Relaxation Pre-Stressed Concrete Strands, Post-tensioning Systems, HDPE Ducts, Couplers, and Aluminium Conductors, and is certified ISO 9001:2015. Its products serve diverse sectors, including infrastructure, transportation, and power transmission.
Two state-of-the-art manufacturing plants in Ratlam, Madhya Pradesh, equipped with essential machinery, infrastructure, and in-house testing facilities, ensure the company’s products meet all required standards and quality.
The company constantly improves processes and technology and emphasizes excellence in service. To diversify income, it acquired commercial properties in Surat and Vadodara, generating steady rental income and expanding its revenue streams.
Kataria Industries Ltd IPO Fundamental Analysis
Kataria Industries Limited Technologies’ financial analysis reveals a mixed performance. Revenue has steadily increased, reflecting growth. Equity is rising, debt reliance is down, while profitability and EPS are improving. However, RoNW has decreased, and asset reduction suggests potential challenges.
- Revenue Trend: The revenue increased from ₹24,963.10 lakhs in March 2022 to ₹33,182.94 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 33,912.72 lakhs.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹738.34 lakhs in March 2022 to ₹1,002.11 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹4.66 in March 2022 to ₹6.32 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has reduced from 26.31% to 22.03%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have decreased, suggesting a potential business decline. However, the current ratio has also decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations.
Kataria Industries IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 24,963.10 | 33,182.94 | 33,912.72 |
| Equity (₹ in lakhs) | 2,806.33 | 3,584.16 | 4,586.26 |
| Expenses (₹ in lakhs) | 23,983.26 | 32,565.11 | 32,658.18 |
| Profit and Loss After Tax (₹ in lakhs) | 738.34 | 777.83 | 1,002.11 |
| Diluted EPS only (₹) | 4.66 | 4.91 | 6.32 |
| Return on Net Worth (%) | 26.31 | 21.70 | 22.03 |
| NAV per Equity Share (₹) | 17.71 | 22.62 | 28.71 |
| Total Assets (in lakhs) | 12,787.19 | 15,058.73 | 12,002.84 |
| Total Liabilities (in lakhs) | 9,980.86 | 11,474.57 | 7,416.58 |
| Debt Equity Ratio | 3.26 | 2.98 | 1.38 |
| Current Ratio (in times) | 1.41 | 1.38 | 1.14 |
Kataria Industries Limited IPO Peer Comparison
Kataria Industries Limited shows significant revenue and equity growth with rising profitability, while Kamdhenu Limited and Bharat Wire Ropes Limited have solid financials and profitability. Incredible Industries Limited displays high revenue but lower profitability and equity.
| Company | Total Income (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) | Revenue from Operation (₹ in lakhs) |
| Kataria Industries Limited | 26,304.04 | 10 | – | 4.91 | 21.70 | 22.62 | 26,149.78 |
| Kamdhenu Limited | 73,367.00 | 10 | 39.76 | 15.23 | 24.44 | 61.88 | 73,208.26 |
| Incredible Industries Limited | 74,101.83 | 10 | 45.19 | 1.05 | 3.87 | 27.08 | 74,060.70 |
| Bharat Wire Ropes Limited | 58,973.38 | 10 | 33.88 | 9.68 | 12.85 | 73.50 | 58,906.45 |
Kataria Industries Ltd IPO Objective
The main objective of Kataria Industries Limited is to invest in machinery, repay debt, and support general corporate purposes.
- Funding capital expenditure requirements for purchasing equipment/machinery: The company intends to utilize INR 1.75 crores to buy new capital equipment to enhance execution capacity. Details on the equipment and quotations, valid for up to one month, will be finalized based on business needs.
- Repayment of Debt: The company plans to utilize INR 46 crores from the Net Proceeds to repay or prepay borrowings. This will reduce debt, improve the debt-equity ratio, and support future business growth and expansion.
- General Corporate Purposes: The company will deploy the balance of funds towards general corporate purposes, including financing working capital requirements, capital expenditure, acquiring business premises, and meeting difficulties, among other needs.
Kataria Industries IPO Risks And Challenges
Kataria Industries Limited’s risks include potential delays and cost overruns in equipment purchases, raw material price fluctuations due to a lack of long-term contracts, and dependency on a few key customers, which could impact its financial stability and growth.
- A portion of the Net Proceeds will be allocated to acquiring equipment and machinery. However, potential delays, cost overruns, and vendor issues could affect the capital expenditure and impact the company’s growth and financial condition.
- Raw material prices for steel wires and plastic sheets have been stable but may fluctuate. The lack of long-term supply contracts exposes them to price volatility, which can affect operations if costs rise or suppliers fail.
- A significant portion of their revenue comes from a few key customers. Losing any of these essential clients could negatively impact their business, financial condition, results of operations, and prospects.
Kataria Industries Ltd IPO – Industry & Market Potential
India’s Budget 2023-24 increases infrastructure investment to 33% of GDP, focusing on Railways and logistics. By 2025, the National Infrastructure Pipeline aims to invest $1.4 trillion, boosting urban and construction markets.
As of November 2023, India’s installed power capacity is 426.13 GW, with 42.1% from renewables. Power generation grew 8.87% in FY23, and peak demand reached 243.27 GW. Thermal power load is expected to improve in FY24.
The capital goods sector in India, contributing 12% to manufacturing output and 1.8% to GDP, is expected to see substantial growth. Driven by rising demand and exports, the electrical equipment market is projected to reach $72 billion by 2025.
Kataria Industries Limited IPO – Type of Offer
Kataria Industries Limited is launching an IPO with a fresh issue of 56,85,000 shares worth INR 54.58 crores. The company aims to invest in machinery, repay debt, and support general corporate purposes.
Kataria Industries IPO Offer Size
The offer size of Kataria Industries Limited is INR 54.58 crores, consisting of a fresh issue of 56,85,000 shares. The company seeks funds to invest in machinery, repay debt, and support general corporate purposes.
Kataria Industries Limited IPO Allotment Structure
Kataria Industries Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for a Kataria Industries Limited IPO?
To apply for the Kataria Industries Limited IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Kataria Industries Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Kataria Industries Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Kataria Industries Limited’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Kataria Industries Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Kataria Industries Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Kataria Industries Limited IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Kataria Industries Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Kataria Industries Limited Ltd IPO Offer Registrar
The registrar for the Kataria Industries Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
BIGSHARE SERVICES PRIVATE LIMITED
Address: Office No. S6-2, 6th Floor, Pinnacle Business
Park, Next to Ahura Centre, Mahakali Caves Road,
Andheri (East), Mumbai – 400093
Tel No.:022-62638200
E-Mail: [email protected]
Website: www.bigshareonline.com
Kataria Industries Limited Limited IPO – FAQs
The allotment date of the Kataria Industries Limited IPO is July 22, 2024.
The price band of the issue is INR 91-96 per share.
The offer size of Kataria Industries Limited is INR 54.58 crores, consisting of a fresh issue of 56,85,000 shares. The company seeks funds to invest in machinery, repay debt, and support general corporate purposes.
The listing date of Kataria Industries Limited’s IPO is July 24, 2024.
