Kundan Edifice Limited IPO

Kundan Edifice Limited IPO

The Issue includes a fresh Issue of up to 27,72,000 Equity Shares of the Company of INR 91 per share, aggregating to INR 25.52 crores. The company intends to use the funds raised to meet its working capital requirement. 

Kundan Edifice IPO – Important Details

Kundan Edifice IPO Date 12th September-15th September 2023
Kundan Edifice IPO Listing Date 26th September 2023
Kundan Edifice IPO Price INR 91
Kundan Edifice IPO Lot Size 1200Shares
Kundan Edifice IPO Total Issue Size INR 25.22 crores
Kundan Edifice IPO Basis of Allotment 21th September 2023
Kundan Edifice IPO Initiation of Refunds 22th September 2023
Kundan Edifice IPO Credit of Shares to Demat 25th September 2023
Kundan Edifice IPO Issue Type Fixed Price Issue
Kundan Edifice IPO Listing At NSE SME

Kundan Edifice IPO – Company Profile

Incorporated in 2010, the company entered into assembly and sale of lighting products in Fiscal 2014. Since the current promoter, Mr.Divyansh Gupta took control of the Company in 2016, the company has focused its business operations on manufacturing, assembly, and sale of light emitting diode (“LED”) strip lights.

As an EMS (electronics manufacturing services) Company, it is primarily an original design manufacturer (“ODM”) and design, develop, manufacture, and supply products to customers who then further distribute these products under their own brands.

The company focuses on unconventional lighting products, i.e., LED strip lights with varied applications across industries such as real estate, railways, automobiles, decorative lighting, etc. The LED strip lights or flexible linear lights as a concept replacing traditional lighting like bulbs, tube lights, and many other kinds of lights since the flexible linear lights have indoor as well as outdoor applications.

Kundan Edifice Ltd IPO – Fundamental Analysis

Revenue Growth: 

The company has demonstrated substantial revenue growth over the past three years, increasing from ₹1,513.66 lakhs in 2021 to ₹6,021.93 lakhs in 2023. This is a positive sign as it indicates a growing business.

Profitability: 

Profit after tax has also seen significant growth, from ₹77.22 lakhs in 2021 to ₹513.09 lakhs in 2023. The company’s profit margins seem healthy, and the return on net worth (RoNW) has improved from 59.45% to 63.28%, a positive indicator of financial health.

Earnings per Share (EPS): 

Diluted EPS has shown consistent growth, increasing from ₹1.06 to ₹6.84. This suggests that the company is generating more earnings for each share, which is favorable for investors.

Net Asset Value (NAV): 

NAV per Equity Share has also increased significantly from ₹1.78 to ₹10.81. This indicates an increase in the underlying asset value, which is a good sign for investors.

Total Assets and Liabilities: 

The company’s total assets have increased steadily, indicating growth and expansion. Total liabilities have also increased, which is expected as the company expands its operations.

Summary:

Kundan Edifice Ltd appears to have a healthy financial position with consistent revenue and profit growth. However, as with any investment, risks are involved, and it’s essential to conduct a more comprehensive analysis, including assessing industry trends, the competitive landscape, and the company’s business model. Consider consulting with a financial advisor or conducting further research before investing in the IPO.

Kundan Edifice Ltd IPO Financial Information

Particular As at 31 March 2021 As at 31 March 2022 As at 31 March 2023
Revenue (₹ in lakhs) 1,513.66 3,247.25 6,021.93
Equity (₹ in lakhs) 129.90 297.72 810.81
Expenses (₹ in lakhs) 1,440.93 3,075.46 5,347.86
Profit and Loss After Tax (₹ in lakhs) 77.22 167.82 513.09
RoNW (%) 59.45% 56.37% 63.28%
Diluted EPS only (₹) 1.06 2.24 6.84
NAV per Equity Share (₹) 1.78 3.97 10.81
Total Assets (in lakhs) 1,185.44 1,928.14 2,965.84
Total Liabilities (in lakhs)

 

1,055.54 1,630.42 2,155.03

Kundan Edifice Limited IPO Peer Comparison

There are no listed companies that exclusively undertake the manufacturing of LED strip lights. Hence, industry comparison with Kundan Edifice is not possible. 

Kundan Edifice IPO Objective

Kundan Edifice Limited’s IPO aims to raise capital to support its growth. The funds will be used primarily for working capital needs and general corporate purposes, including technological advancement and business expansion.

  1. Funding working capital requirement: The Company’s business is capital intensive. The Company avails the majority of its working capital requirement in the ordinary course of its business from its internal accruals and through working capital facilities/loans from Banks. The working capital will be primarily used for expanding the current business operations. The funding of the working capital requirements of the company is expected to lead to a consequent increase in profitability. The company proposes to utilize INR 15.45 crores from the funds raised to meet the working capital requirement. 
  2. General corporate purpose: The company plans to deploy the balance funds towards the general corporate purpose, which is not limited to meeting expenses incurred in the ordinary course of business such as strategic initiatives, including advancement of information technology, meeting future branch and business expansion, etc.

Kundan Edifice Ltd IPO Risks And Challenges

Investing in Kundan Edifice Ltd IPO carries risks, including ongoing litigation and claims that could lead to financial liabilities. The company heavily relies on its top 10 customers for 89% of its income, posing a risk if these relationships falter.

    1. The company and group companies are parties to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before various courts and regulatory authorities. Any adverse decision may make the company liable to liabilities/penalties and adversely affect its reputation, business, and financial status.
    2. Customer Dependency: As of 31st march 2023, the company derived 89% of its income from the top 10 customers.  Loss of relationship with any of these customers may have a material adverse effect on the profitability and results of operations.

Kundan Edifice Ltd IPO – Industry & Market Potential

India is the second fastest digitizing economy amongst the 17 leading economies of the world. The government of India aims to make electronics goods amongst India’s 2-3 top-ranking exports by 2026. Electronic goods exports are expected to increase from the projected US$ 15 billion in 2021-22 to US$ 120 billion by 2026.

Major Government initiatives such as ‘Digital India’ and ‘Make in India’ and supportive policies, including a favorable FDI Policy for electronics manufacturing, have simplified the process of setting up manufacturing units in India.

Kundan Edifice Ltd IPO – Type of Offer

The Issue includes a fresh Issue of up to 27,72,000 Equity Shares of the Company of INR 91 per share, aggregating to INR 25.52 crores. The company intends to use the funds raised to meet its working capital requirement.

Kundan Edifice Limited IPO Offer Size

The Issue includes a fresh Issue of up to 27,72,000 Equity Shares of the Company of INR 91 per share, aggregating to INR 25.52 crores. 

Kundan Edifice Limited IPO Allotment Structure

The Kundan Edifice Limited IPO allotment structure consists of allocations for Retail Individual Investors (RII) with application values up to INR 2 lakhs, other than retail individual investors, and a reservation of 1,41,600 equity shares for market makers, totaling 5.11% of the total issue.

Retail Individual Investors (RII): The application value does not exceed INR 2 lakhs. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.

Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.

Market Maker Reservation: A total of 1,41,600 equity shares are reserved for market makers. This forms 5.11% of the total issue. 

How to apply for a Kundan Edifice IPO through Alice Blue?

To apply for the Kundan Edifice IPO through Alice Blue, you would typically follow these steps:

  1. Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
  2. Check for IPO Details: Once your account is active, you can check for the Kundan Edifice IPO details in the IPO section of the Alice Blue platform.
  3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
  4. Submit the Application: Confirm all your details and submit your application.

 You can apply for Kundan Edifice IPO at Alice Blue in just a few clicks!

Check Allotment Status: Post 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 to Check Kundan Edifice IPO Allotment Status on Alice Blue?

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.

  1. 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.
  2. 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.
  3. Select the Kundan Edifice 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 Kundan Edifice IPO.
  4. 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 to contact Alice Blue’s customer support for detailed assistance.

 Apart from Alice Blue, there are other ways to check the allotment status of the Kundan Edifice IPO:

  • Registrar’s Website: Visit the website of Cameo Corporate Services Limited, the registrar of the Kundan Edifice IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number 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 (BSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status.

 Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.

Kundan Edifice Limited IPO Offer Registrar

The registrar for the Kundan Edifice Limited IPO is Cameo Corporate Services Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

Cameo Corporate Services Limited

No. 01, Club House Road, Mount Road, 

Chennai- 600002, India.

E-mail Id: [email protected]

Website: www.cameoindia.com

Kundan Edifice Limited IPO FAQs

1. What is the allotment date of the Kundan Edifice IPO?

 The allotment date is 21st September 2023.

2. What is the price band of Kundan Edifice IPO? 

The issue price per equity share is INR 91.

3. What is the size of the Kundan Edifice IPO?

 The Issue includes a fresh Issue of up to 27,72,000 Equity Shares of the Company of INR 91 per share, aggregating to INR 25.52 crores.

4. What is the listing date of the Kundan Edifice IPO?

 The listing date is 26th September 2023.

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