Synopsis: Kataria Industries is set to launch its IPO on July 16, offering shares priced between Rs. 91-96 each with a lot size of 1,200 equity shares. With a goal of raising Rs. 54.58 crore through a fresh issue, the company has already secured Rs. 15.53 crore from anchor investors scheduled for July 24.
Kataria Industries operates two manufacturing plants in Ratlam, Madhya Pradesh, outfitted with essential machinery, infrastructure, and in-house testing facilities.
Their initial public offering (IPO) opens for bidding on July 16 and will be available for three days, closing on Friday, July 19.
This SME player is offering shares priced between Rs. 91-96 each, with a lot size of 1,200 equity shares and multiples thereof.
Established in 2004, Kataria Industries specializes in manufacturing and supplying low relaxation prestressed concrete (LRPC) strands and steel wires, post-tensioning (PT) anchorage systems (Anchor Cone, Anchor Head, and Wedges), HDPE single-wall corrugated (SWC) sheathing ducts, couplers, and aluminium conductors.
Kataria Industries aims to raise Rs. 54.58 crore through its SME issue, entirely consisting of a fresh issue of up to 56.85 lakh equity shares.
Prior to the IPO, the company secured Rs. 15.53 crore from anchor investors, distributing 16,17,600 shares to AG Dynamics Funds, North Star Opportunities Fund, Radiant Global Fund, and Eminence Global Fund PCC.
Retail investors can apply for one lot or 1,200 equity shares amounting to Rs. 1,15,200, while non-retail investors must apply for at least two lots or 2,400 equity shares amounting to Rs. 2,30,400.
Net proceeds from the issue will be used for capital expenditure on plant and machinery, debt repayment, and general corporate purposes.
The grey market premium (GMP) for the SME issue remains strong, rising in the last 24 hours.
The company is commanding a premium of Rs. 50 per share in the unofficial market, indicating a potential 52 percent listing gain over the upper end of the IPO price band.
The GMP was Rs. 45 around 24 hours ago.
Kataria Industries operates two manufacturing plants in Ratlam, Madhya Pradesh, equipped with essential machinery, infrastructure, and in-house testing facilities.
Its manufacturing facility is certified for quality management systems.
The company serves both domestic and international customers, exporting goods to Dubai, Qatar, Nepal, Iran, Oman, Bahrain, and Brazil.
The company’s diverse product range is used in various sectors, including infrastructure, roads, bridges, flyovers, metros, railways, high-rise buildings, atomic reactors, LNG tanks, power transmission, and distribution lines.
Kataria Industries reported a net profit of Rs. 10.02 crore with revenue of Rs. 341.49 crore for the fiscal year ending March 31, 2024.
This compares to a net profit of Rs. 7.78 crore and revenue of Rs. 333.93 crore in the previous financial year 2022-23.
Of the net offer, 50 percent will be reserved for qualified institutional bidders (QIBs), 15 percent for non-institutional bidders, and the remaining 35 percent for retail investors.
Interactive Financial Services is the book-running lead manager of the Kataria Industries IPO, and Bigshare Services is the registrar for the issue.
The company's shares will be listed on the NSE's Emerge (SME) platform, with a tentative listing date of July 24.
In conclusion, Kataria Industries' IPO offers investors a promising opportunity with its well-established manufacturing capabilities, diverse product range, and strong market presence.
With a firm grey market premium and a strategic allocation of shares, the company is poised for a successful listing.
Investors should carefully consider the company's financial health, growth potential, and the broader market conditions before making investment decisions.
Disclaimer: We provide stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
