Kaka Industries IPO GMP, Review, Price, Allotment: A Comprehensive Overview
In the world of investing, Initial Public Offerings (IPOs) present exciting opportunities for investors to be a part of a company’s growth journey right from the beginning. One such IPO that has been creating a buzz in the market is the Kaka Industries IPO. In this article, we will delve into the details of Kaka Industries, including its business description, financial performance, IPO details, and more.
Introduction to Kaka Industries
Kaka Industries, incorporated in 2019, is a leading manufacturer of polymer-based profiles used in various applications such as doors, windows, partitions, false ceilings, wall paneling, kitchen cabinets, and other interior and exterior works. The company has gained a strong foothold in the market by offering a diverse product portfolio with over 1200 SKUs.
Product Portfolio
Kaka Industries boasts a wide range of products, including PVC Profiles, uPVC door and window profiles, and WPC profiles and sheets. With different sizes, specifications, and colors, the company caters to the diverse needs of its customers. Notably, all products, except for WPC profiles and doors, are non-wood based, making them more sustainable and eco-friendly.
Distribution Network
To ensure widespread availability of its products, Kaka Industries has established an extensive network of 300 dealers across more than 20 states and union territories in India. The company’s distribution network is supported by three depots strategically located in Gagilapur (Telangana), Dadri (Uttar Pradesh), and Surat (Gujarat). This robust network enables Kaka Industries to efficiently serve its customers and meet their demands.
Manufacturing Facilities
Kaka Industries operates three state-of-the-art manufacturing units in village Zak, Gandhinagar district, Gujarat. These units have a combined installed capacity of 15,425 metric tons for PVC profiles, 2,995 metric tons for WPC profiles and sheets, and 2,022 metric tons for uPVC door and window profiles. The company’s manufacturing facilities are equipped with modern technology and testing equipment, ensuring the production of high-quality products that meet industry standards.
Kaka Industries IPO Details
Kaka Industries IPO Dates | 10 – 12 July 2023 |
Kaka Industries IPO Price | INR 55 – 58 per share |
Fresh issue | 36,60,000 shares (INR 20.13 – 21.23 crores) |
Offer For Sale | NIL |
Total IPO size | 36,60,000 shares (INR 20.13 – 21.23 crores) |
Minimum bid (lot size) | 2,000 shares (INR 116,000) |
Face Value | INR 10 per share |
Retail Allocation | 35% |
Listing On | BSE SME |
The Kaka Industries IPO is scheduled to take place from 10th to 12th July 2023. The price range for the IPO is set at INR 55 to 58 per share. The IPO consists of a fresh issue of 36,60,000 shares, valued at approximately INR 20.13 to 21.23 crores. There is no offer for sale component in this IPO. The minimum bid (lot size) is set at 2,000 shares, amounting to INR 116,000. The face value of each share is INR 10. The retail allocation in the IPO is 35%. The listing will be on the BSE SME platform.
Financial Performance
Let’s take a closer look at Kaka Industries’ financial performance based on the available data:
FY 2020 | FY 2021 | FY 2022 | 9M FY 2023 | |
Revenue | 41.49 | 78.75 | 116.96 | 116.62 |
Expenses | 39.54 | 74.62 | 110.44 | 111.15 |
Net income | 1.41 | 3.03 | 4.98 | 3.85 |
Figures in INR crores unless specified otherwise
- FY 2020 Revenue: INR 41.49 crores
- FY 2021 Revenue: INR 78.75 crores
- FY 2022 Revenue: INR 116.96 crores
- 9M FY 2023 Revenue: INR 116.62 crores
- FY 2020 Net Income: INR 1.41 crores
- FY 2021 Net Income: INR 3.03 crores
- FY 2022 Net Income: INR 4.98 crores
- 9M FY 2023 Net Income: INR 3.85 crores
Valuations and Margins
Here are some key valuation and margin figures for Kaka Industries:
- EPS:
- FY 2020: INR 5.17
- FY 2021: INR 4.59
- FY 2022: INR 4.98
- PE Ratio: Not available
- RONW (%):
- FY 2020: 99.30%
- FY 2021: 40.68%
- FY 2022: 40.09%
- NAV:
- FY 2020: INR 5.21
- FY 2021: INR 11.28
- FY 2022: INR 12.41
- ROCE (%):
- FY 2020: 23.36%
- FY 2021: 19.64%
- FY 2022: 21.62%
- EBITDA (%):
- FY 2020: 5.53%
- FY 2021: 7.68%
- FY 2022: 8.17%
- Debt/Equity:
- FY 2020: 5.84
- FY 2021: 2.69
- FY 2022: 2.20
IPO Dates and Listing Performance
The important dates related to the Kaka Industries IPO are as follows:
Kaka Industries IPO Dates | 10 – 12 July 2023 |
Kaka Industries IPO Price | INR 55 – 58 per share |
Fresh issue | 36,60,000 shares (INR 20.13 – 21.23 crores) |
Offer For Sale | NIL |
Total IPO size | 36,60,000 shares (INR 20.13 – 21.23 crores) |
Minimum bid (lot size) | 2,000 shares (INR 116,000) |
Face Value | INR 10 per share |
Retail Allocation | 35% |
Listing On | BSE SME |
- IPO Opening Date: 10th July 2023
- IPO Closing Date: 12th July 2023
- Finalization of Basis of Allotment: 17th July 2023
- Initiation of Refunds: 18th July 2023
- Transfer of Shares to Demat Accounts: 19th July 2023
- IPO Listing Date: 20th July 2023
As of now, the opening and closing prices of the IPO on the BSE SME platform are yet to be determined.
Offer Lead Manager
The lead manager for the Kaka Industries IPO is HEM SECURITIES LIMITED. You can reach them at:
- Address: 904, A Wing, Naman Midtown, Senapati Bapat Marg, Elphinstone Road, Lower Parel, Mumbai-400013, Maharashtra
- Phone: +91-022-49060000
- Email: ib@hemsecurities.com
- Website: www.hemsecurities.com
Conclusion
In conclusion, the Kaka Industries IPO presents an opportunity for investors to participate in a company with a diverse product portfolio and a strong presence in the market. With its focus on sustainable and non-wood based products, the company is well-positioned for growth. However, as with any investment, it is important to conduct thorough research and seek professional advice before making any investment decisions.
FAQs
How often does the IPO Grey Market Premium change?
The Grey Market Premium is dynamic and can change frequently, influenced by market conditions and investor sentiment. It is advisable to stay updated with the latest figures through reliable sources.
Can investors participate in the Grey Market trading?
Grey Market trading is conducted through a network of dealers, and participation is limited to select individuals or entities. It is an unofficial market and not regulated like the stock exchange.
Should investors rely solely on the IPO Grey Market Premium for investment decisions?
No, investors should consider the Grey Market Premium as one of several factors when making investment decisions. Thorough research, analysis of company fundamentals, and expert advice are equally important.
What is the significance of Kostak rates in IPO investments?
Kostak rates represent the price at which investors can sell their IPO application before listing. It provides an opportunity for early exits. Investors should evaluate both GMP and Kostak rates to make informed decisions.
Disclaimer:
The information provided in this article is for informational purposes only and should not be construed as investment advice. Investors are advised to conduct their own research and consult with financial professionals before making any investment decisions.