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30 April 2024

Kalahridhaan Trendz Limited IPO

Kalahridhaan Trendz Ltd. (KTL) is engaged mainly in the business of manufacturing and trading of Fabric with embroidery works, trading of grey cloths, purchase of grey cloth and printing and dyeing for preparing suiting, shirting and dress materials for sale in the B2B market only. The company is preparing the suiting, shirting & dress material products and focusing on the whole sale market. Kalahridhaan is a full-fledged textile dyeing & processing company standing tall in the Textile Industry for a combined 40+ years. Nestled in the textile hub of Ahmedabad, Kalahridhaan produces up to 1.00 Lakhs meters per day, contributing to a large sector with a manufacturing space of 1, 50,000 sq. Ft.Kala Hridhaan Trendz IPO is a fixed price issue of Rs 22.49 crores. The issue is entirely a fresh issue of 49.98 lakh shares.

Kalahridhaan Trendz IPO price is ₹45 per share. The minimum lot size for an application is 3000 Shares. Interactive Financial Services Ltd is the book running lead manager of the Kalahridhaan Trendz IPO, while Big share Services Pvt Ltd is the registrar for the issue. The market maker for Kalahridhaan Trendz IPO is Sunflower Broking.

Kalahridhaan Trendz IPO Overview

Detail	Description
IPO Date	February 15, 2024 to February 20, 2024
Listing Date	February 23, 2024
Face Value	₹10 per share
Price	₹45 per share
Lot Size	3000 Shares
Total Issue Size	4,998,000 shares (aggregating up to ₹22.49 Cr)
Fresh Issue	4,998,000 shares (aggregating up to ₹22.49 Cr)
Issue Type	Fixed Price Issue IPO
Listing At	NSE SME
Share holding pre issue	12,189,000
Share holding post issue	17,187,000
Market Maker portion	252,000 shares Sunflower Broking

Kalahridhaan Trendz IPO Timeline (Tentative Schedule)

Detail	Description
IPO Open Date	Thursday, February 15, 2024
IPO Close Date	Tuesday, February 20, 2024
Basis of Allotment	Wednesday, February 21, 2024
Initiation of Refunds	Thursday, February 22, 2024
Credit of Shares to Demat	Thursday, February 22, 2024
Listing Date	Friday, February 23, 2024
Cut-off time for UPI mandate confirmation	5 PM on February 20, 2024

Kalahridhaan Trendz IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	3000	₹135,000
Retail (Max)	1	3000	₹135,000
HNI (Min)	2	6,000	₹270,000

Kalahridhaan Trendz IPO Reservation

Investor Category	Shares Offered
Anchor Investor Shares Offered	-
Market Maker Shares Offered	252,000 (5.04%)
Other Shares Offered	2,373,000 (47.48%)
Retail Shares Offered	2,373,000 (47.48%)
Total Shares Offered	4,998,000 (100%)

Kalahridhaan Trendz IPO Promoter Holding

Share Holding Pre Issue	96.22%
Share Holding Post Issue	68.24%

Company & Financials

The company is in the business of manufacturing and trading of fabrics with embroidery works primarily in the B2B segment. It posted a static top line for FY22 andFY23, but its net profit marked a miracle for FY23.It is the first stage wholesalers, who directly supply the material to the wholesalers. In case of Embroidery Segment, the Company undertakes the embroidery work for its own business as well as on behalf of the other clients. In addition to this KTL also gets embroidery work out sourced. The company also deals in purchase and sale of grey cloths as well as the suiting, shirting and dress materials. It has two embroidery knitting machines having a capacity of 15000 metres per day. As a part of expansion of business activities, and as a part of forward integration, the company also taken over the textile dyeing and printing business unit on rent basis in February, 2018, where it is carrying out the dying and printing of suiting, shirting and dress materials for own use as well as on job work too.

Kalahridhaan Trendz Limited Financial Information

Period Ended	30 Sep 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	10,979.30	10,962.55	10,297.94	5,979.36
Revenue	8,434.54	18,417.01	18,390.46	13,235.91
Profit After Tax	478.72	666.01	246.20	110.54
Net Worth	2,290.94	1,202.78	536.77	290.56
Reserves and Surplus	1,072.04	1,202.78	536.77	290.56
Total Borrowing	6,702.43	6,105.33	5,249.90	3,145.56
Amount in ₹ Lakhs

Key Performance Indicator

KPI	Values
ROE	42.09%
ROCE	17.39%
Debt/Equity	3.19
RoNW	36.75%
P/BV	1.51

	Pre IPO	Post IPO
EPS (Rs)	5.46	5.57
P/E (x)	8.24	8.08

Objectives of Kalahridhaan Trendz IPO

The company proposes to utilise the Net Proceeds from the issue towards the following objectives:

1. Working capital requirement.
2. General Corporate Purpose.
3. Meeting Public Issue Expenses.

Kalahridhaan Trendz Limited IPO Review

The company is operating in a highly competitive and fragmented segment. It primarily works on B2B models for manufacturing and trading in fabric with embroidery and grey fabrics. Based on FY24 annualized super earnings, the issue appears reasonably priced, but sustainability of such margins going forward raised concerns. Well-informed/cash surplus investors may consider parking funds for the medium term.

FAQs for Kalahridhaan Trendz IPO

What Is The Allotment Date Of The Kalaridhaan Trendz Limited IPO?

The allotment date of Kalaridhaan Trendz Limited IPO is February 21, 2024.
What Is The Price Band Of The Kalaridhaan Trendz Limited IPO?

The price band of the company is INR 45 per share.
What Is The Size Of The Kalaridhaan Trendz Limited IPO?

Kalahridhaan Trendz IPO consists of a fresh issue of shares worth INR 22.49 crores. The company seeks funds to meet working capital requirements and general corporate purposes.
When will Kalahridhaan Trendz Ltd list on exchanges?

Kalahridhaan Trendz Ltd will be listed on the NSE Emerge on Friday, February 23, 2024.
When will Kalahridhaan Trendz Ltd IPO open for subscription?

The IPO subscription window is from February 15, 2024, to February 20, 2024.