Kataria Industries SME IPO; Ratlam based Engineering Goods Manufacturing company IPO to begin from July 16; Key Details here

Ratlam based Kataria Industries is into Industrial Engineering Goods Manufacturing and is looking raise funds through Fresh Issue

Ratlam based Kataria Industries IPO: Ratlam based Kataria Industries to raise around Rs 55 crores through public issue IPO

Kataria Industries IPO is a public offering of shares by Sunil Kataria, Arun Kataria and Anoop Kataria. The IPO will open on July 16 and will close on July 19. The price band is ₹91 to ₹96 per share and the lot size is 1,200 shares. The issue size is ₹54.58 crore. The shares are expected to be listed on NSE Emerge on July 24 (^). Some additional information that you may find useful are: Revenue for FY24 / FY23 grew by 2.2% / 32.93% respectively. Capex spent by the company in FY24 / FY23 / FY22 at Rs14.45 Cr / Rs19.54 Cr / Rs12.05 Cr. Further from the IPO proceeds, company has planned to spend Rs1.75 Cr towards plant and machinery.: (**) - based on higher price band (^) indicative date

Also READ: Ratlam based Engineering Goods Manufacturing Company Kataria Industries files DRHP with SEBI for the proposed IPO; Key Details here

Key Pointers of Kataria Industries IPO:

Promoters of the company are Sunil Kataria, Arun Kataria and Anoop Kataria Currently promoters hold 100% stake in the company. While post-equity promoters stake will be 73.6%

Company has not undertaken Pre-IPO placement.

• Company aims to raise between Rs 52 to 55 crs through this IPO.
• The net proceeds of the issue will be utilized to 1) Capital Expenditure for Plant & Machinery - Rs1.75 Cr 2) Repayment of Debt - Rs46 Cr. and 3) General corporate purposes
• Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 15-Jul-24.
• Price band for the IPO has been fixed at Rs 91 to 96 per share and bid lot are in multiple of 1,200 shares. The implied market cap post-issue at Rs 196 to 207 crs.
• As per the tentative schedule, allotment date of this IPO is most likely on July 22 and share are expected to be listed on NSE Emerge on July 24.
• Company has direct peer competition in India'a Steel wires segment. Mainboard listed peers includes Kamdhenu Ltd., Incredible Industries and Bharat Wire Ropes Ltd. amongst others.
• Interactive Financial Services Ltd. has been appointed as Merchant Banker to the issue. Bigshare Services Pvt. Ltd. has been appointed as official registrar of the issue.

About Kataria Industries Limited

Kataria Industries Limited

Established in 2004, Kataria Industries Limited is a manufacturing organization that specializes in manufacture of various steel wire products. It manufactures and processes Low Relaxation Pre-stressed Concrete (LRPC) Strands and Steel Wires. It also produces Post-tensioning (PT) Anchorage System components such as Anchor Cones, Anchor Heads, and Wedges, HDPE Single-Wall Corrugated (SWC) Sheathing Ducts, Couplers, and Aluminum Conductors.
Manufacturing Facility
Company has two manufacturing plants based in Ratlam (MP).
a) Wire division has manufaturing capacity of 45,000 tonnes
b) PTS Division: Anchorages has capacity of 792,000 units
c) HDPE Sheathing Ducts has capacity of 900,000 meters and
4) Conductor Division has capacity of 9,000 tonnes.
Exports
Company is currently expoting to over six (6) countries mainely to Dubai, Qatar, Nepal, Oman Bahrain and Brazil.
FY24 Financials
Revenues: Rs339.1 Crores
EBITDA: Rs22.9 Crores
PAT: Rs10.0 Crores
ROE: 26%
ROCE: 18%

Revenue for FY24 / FY23 grew by 2.2% / 32.93% respectively. Capex spent by the company in FY24 / FY23 / FY22 at Rs14.45 Cr / Rs19.54 Cr / Rs12.05 Cr. Further from the IPO proceeds, company has planned to spend Rs1.75 Cr towards plant and machinery.

Infrastructure is a key enabler in helping India become a US $26 trillion economy. Investments in building and upgrading physical infrastructure, especially in synergy with the ease of doing business initiatives, remain pivotal to increase efficiency and costs.
India’s power sector is one of the most diversified in the world. Sources of power generation range from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power, to viable non-conventional sources such as wind, solar, agricultural and domestic waste.
India’s Capital Goods manufacturing industry serves as a strong base for its engagement across sectors such as Engineering, Construction, Infrastructure and Consumer goods, amongst others.
The engineering sector is the largest of the industrial sectors in India. It accounts for 27% of the total factories in the industrial sector and represents 63% of the overall foreign collaborations. Demand for engineering sector services is being driven by capacity expansion in industries like infrastructure, electricity, mining, oil and gas, refinery, steel, automobiles, and consumer durables.