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13 July 2024

Kataria Industries Limited IPO

Kataria Industries is engaged in the manufacturing and supply of Low Relaxation Prestressed Concrete (LRPC) Strands and Steel Wires, Post-tensioning (PT) Anchorage System (Anchor Cone, Anchor Head, and Wedges), HDPE Single Wall Corrugated (SWC) Sheathing Ducts, Couplers and Aluminum Conductors. Their wide variety of products is utilized in various sectors including Infrastructure, Roads – Bridges & Flyovers, Metros, Railways, High Rise Buildings, Atomic Reactors, LNG Tanks, Power Transmission & Distribution Lines, etc.

Their products are certified by ISO 9001:2015 for quality management systems. Kataria Industries IPO is a book-built issue of Rs 54.58 crores. The issue is entirely a fresh issue of 56.85 lakh shares. Kataria Industries IPO opens for subscription on July 16, 2024 and closes on July 19, 2024. Kataria Industries IPO price band is set at ₹91 to ₹96 per share. The minimum lot size for an application is 1200 Shares. Interactive Financial Services Ltd is the book-running lead manager of the Kataria Industries IPO, while Bigshare Services Pvt Ltd is the registrar for the issue.

Kataria Industries IPO Overview

Detail	Description
IPO Date	July 16, 2024 to July 19, 2024
Listing Date	[.]
Face Value	₹10 per share
Price Band	₹91 to ₹96 per share
Lot Size	1200 Shares
Total Issue Size	5,685,000 shares (aggregating up to ₹54.58 Cr)
Fresh Issue	5,685,000 shares (aggregating up to ₹54.58 Cr)
Issue Type	Book Built Issue IPO
Listing At	NSE SME
Shareholding pre issue	15,846,834
Shareholding post issue	21,531,834

Kataria Industries IPO Timeline (Tentative Schedule)

Detail	Description
IPO Open Date	Tuesday, July 16, 2024
IPO Close Date	Friday, July 19, 2024
Basis of Allotment	Monday, July 22, 2024
Initiation of Refunds	Tuesday, July 23, 2024
Credit of Shares to Demat	Tuesday, July 23, 2024
Listing Date	Wednesday, July 24, 2024
Cut-off time for UPI mandate confirmation	5 PM on July 19, 2024

Kataria Industries IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	1200	₹115,200
Retail (Max)	1	1200	₹115,200
HNI (Min)	2	2,400	₹230,400

Kataria Industries IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50% of the Net Issue
Retail Shares Offered	Not less than 35% of the Net Issue
NII (HNI) Shares Offered	Not less than 15% of the Net Issue

Kataria Industries IPO Promoter Holding

Share Holding Pre Issue	100.00%
Share Holding Post Issue

Company & Financials

Incorporated in 2004, Kataria Industries Limited manufactures and supplies Low Relaxation Prestressed Concrete (LRPC) Strands and Steel Wires, Post-tensioning (PT) Anchorage System, HDPE Single-Wall Corrugated (SWC) Sheathing Ducts, Couplers and Aluminum Conductors. The company's wide range of products is used in various sectors, including Infrastructure, Roads, Bridges, Flyovers, Metros, Railways, High-Rise Buildings, Atomic Reactors, LNG Tanks, Power Transmission and Distribution Lines.
The product portfolio of the company comprises the following:-

● LRPC Strands
● Polymer-coated grease/wax-filled LRPC Strands
● Galvanized LRPC Strands
● Galvanized PE Coated LRPC Strands
● Specialized LRPC Strands (19 Strands and Upto 23.00 mm)

The company has two manufacturing plants in Ratlam, Madhya Pradesh, both equipped with essential machinery, infrastructure and in-house testing facilities to ensure our products meet standards. The company serves both domestic and international customers and has exported goods to Dubai, Qatar, Nepal, Iran, Oman, Bahrain and Brazil.

Kataria Industries Limited Financial Information

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	12,002.84	15,058.73	12,787.19
Revenue	34,148.63	33,393.09	25,048.91
Profit After Tax	1,002.11	777.83	738.34
Net Worth	4,549.56	3,584.16	2,806.33
Reserves and Surplus	3,001.58	3,320.05	2,542.21
Total Borrowing	6,337.11	10,696.20	9,142.29
Amount in ₹ Lakhs

Key Performance Indicator

KPI	Values
ROE	24.53%
ROCE	17.40%
Debt/Equity	1.38
RoNW	22.03%
P/BV	4.24
PAT Margin (%)	2.95

	Pre IPO	Post IPO
EPS (Rs)	6.32	4.65
P/E (x)	15.18	20.63

Objectives of Kataria Industries IPO

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

● Capital Expenditure for plant and machinery.
● Repayment of Debt.
● General corporate purposes.

Kataria Industries IPO Review

The company is primarily in the business of LRPC strands and steel wires manufacturing and marketing. Recently it diversified into the real estate segment to increase its income stream. It posted an average financial performance so far. Based on FY24 earnings, the issue appears aggressively priced. There is no harm in skipping this “High Risk/Low Return” issue.

FAQs for Kataria Industries IPO

What is Kataria Industries IPO?

Kataria Industries IPO is an NSE SME IPO. They are going to raise ₹54.58 Crores via IPO. The issue is priced at ₹91 to ₹96 per equity share. The IPO is to be listed on NSE.
When will Kataria Industries IPO open?

The IPO is to open on July 16, 2024, for QIB, NII, and Retail Investors.
What is Kataria Industries IPO Investors Portion?

The investors’ portion for QIB is 50%, NII is 15%, and Retail is 35%.
What is Kataria Industries IPO Size?

Kataria Industries IPO size is ₹54.58 crores.
What is Kataria Industries IPO Price Band?

Kataria Industries IPO Price Band is ₹91 to ₹96 per equity share.
What is Kataria Industries IPO Minimum and Maximum Lot Size?

The IPO bid is 1200 shares with ₹115,200.
What is Kataria Industries IPO Allotment Date?

Kataria Industries IPO allotment date is July 22, 2024.
What is Kataria Industries IPO Listing Date?

Kataria Industries IPO listing date is July 24, 2024. The IPO to list on NSE SME.