Ratlam-based Kataria Industries: A Deep Dive into its Rs 54.58 Cr IPO
Founded in 2004 and headquartered in Ratlam, Madhya Pradesh, Kataria Industries Ltd. has established itself as a prominent player in the manufacturing sector, specializing in Low Relaxation Pre-stressed Concrete (LRPC) Strands, Steel Wires, and Post-tensioning (PT) Anchorage Systems. With two manufacturing plants in Ratlam, the company has steadily grown its operations over the years, catering to both domestic and international markets.
Details of the Initial Public Offering (IPO)
Kataria Industries has announced its plans to launch an initial public offering (IPO) to raise Rs 54.58 crore through the issuance of 5.685 million fresh shares. The IPO will open for public subscription from July 16 to July 19, with bidding for anchor investors set to commence on July 15. The company has fixed the price band for the IPO at Rs 91 to Rs 96 per share and expects to list its shares on the NSE SME platform Emerge by July 24, 2024.
Allocation and Utilization of Funds
The IPO is structured with 50% of the net issue allocated for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for the non-institutional investor segment. Kataria Industries plans to utilize the net proceeds from the IPO towards capital expenditure for plant and machinery, debt repayment, and general corporate purposes. At the upper end of the price band, the company aims to raise up to Rs 54.58 crore, providing a strategic boost to its expansion and operational capabilities.
Financial Performance and Strategic Positioning
In the fiscal year 2023-24, Kataria Industries reported a revenue of Rs 339.13 crore and an EBIDTA of Rs 22.93 crore, showcasing robust financial performance amidst challenging market conditions. The company’s consistent growth trajectory underscores its strong market position and operational efficiency within the manufacturing segment.
Key Offer Details
Investors participating in the IPO can bid for a minimum of 1,200 shares and in multiples thereafter, facilitating broad participation across investor categories. Interactive Financial Services Ltd. has been appointed as the sole-book running lead manager for the IPO, overseeing the offering process, while Bigshare Services will serve as the registrar for the issue, managing shareholder records and post-issue logistics.
Conclusion
The IPO of Kataria Industries Ltd. represents a significant milestone in its journey of growth and expansion. With a focused approach on enhancing production capabilities, reducing debt, and pursuing strategic initiatives, the company is poised to leverage the funds raised to capitalize on emerging opportunities in the manufacturing sector. Investors keen on participating in the IPO can expect transparency, robust management oversight, and a clear roadmap towards sustainable growth in the competitive landscape of pre-stressed concrete and steel wire manufacturing.
As Kataria Industries prepares for its listing on the NSE SME platform Emerge, all eyes are set on the successful execution of its IPO and the subsequent implications for its operational footprint and market standing.
