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17 August 2023

Kaka Industries IPO: Crafting a Sustainable Future in Polymer Profiles

Introduction:

Founded in 2019, Kaka Industries Limited has rapidly established itself as a significant player in the polymer-based profiles manufacturing industry. The company specialises in creating versatile profiles used in doors, windows, partitions, false ceilings, wall panelling, kitchen cabinets, and other interior and exterior applications. Kaka Industries takes pride in offering more than 1200 SKUs, including PVC Profiles, uPVC door & window profiles, and WPC Profiles & sheets. Notably, the company's products contribute to environmental sustainability by replacing traditional wood-based products, leading to tree conservation.

Diverse Product Portfolio:

Kaka Industries boasts an extensive product range that caters to various construction and design needs. The product portfolio encompasses PVC Profiles, uPVC door & window profiles, and WPC Profiles & sheets, all designed to meet diverse size, specification, and color requirements. The company's dedication to innovation is evident in its fabrication of factory-made PVC and Solid PVC doors.

State-of-the-Art Manufacturing:

With three state-of-the-art manufacturing units in Gujarat, Kaka Industries has a combined installed capacity of 15,425 MT for PVC profiles, 2,995 MT for WPC profiles & sheets, and 2,022 MT for uPVC door & window profiles. The company's robust infrastructure also includes a well-equipped laboratory, modern technology, and testing equipment, ensuring the highest quality standards.

Wide Distribution Network:

Kaka Industries has strategically positioned itself with depots in Gagillapur (Telangana), Dadri (Uttar Pradesh), and Surat (Gujarat), forming a strong distribution network to serve clients effectively across the country.

IPO Details:

Kaka Industries' IPO is a Book Built Issue with an issue size of ₹21.23 Crores. The IPO price ranges from ₹55 to ₹58 per share. The company aims to list on the BSE SME. The IPO subscription period was from July 10, 2023, to July 12, 2023, with the listing date set for July 19, 2023.

Promoters and Shareholding:

The company's promoters, including Rajesh Dhirubhai Gondaliya, Bhavin Rajeshbhai Gondaliya, and Rajeshkumar Dhirubhai Gondaliya (HUF), hold a significant pre-issue shareholding of 95.32%. This is expected to reduce to 69.78% post the IPO.

Financial Performance

Kaka Industries' financial journey reflects its growth trajectory:

Total Assets	₹2,190.68 Lakhs to ₹6,767.00 Lakhs
Total Revenue	₹4,148.74 Lakhs to ₹15,887.70 Lakhs
Profit After Tax	₹141.14 Lakhs to ₹718.50 Lakhs
Net Worth	₹142.14 Lakhs to ₹1,956.88 Lakhs
Total Borrowing	₹830.50 Lakhs to ₹4,013.66 Lakhs

Expert Review:

Kaka Industries operates in a competitive and fragmented segment. Its reasonable pricing and strong financial performance suggest potential for medium to long-term rewards. Investors are advised to weigh the expert review's insights and their risk tolerance before making investment decisions.

Conclusion:

Kaka Industries' IPO offers investors an opportunity to contribute to a sustainable future while potentially reaping rewards from the company's promising growth trajectory. The diverse product portfolio, robust manufacturing capabilities, and expanding distribution network position Kaka Industries favourably within the market. However, investors should carefully evaluate the expert review's analysis alongside their own investment goals and market dynamics. As Kaka Industries aims to shape the future of polymer profiles, investors must decide whether to be a part of this transformative journey.

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