Clara Industries SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 16 Dec 2021 – 21 Dec 2021
- Listing date
- 29 Dec 2021
- Face value
- ₹10 per share
- Issue price
- ₹43 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹3.02 Cr
- Market cap at offer price
- ₹10.67 Cr
- Promoter holding
- 100.00% → 71.70% pre-issue → post-issue
- ISIN
- INE0JJS01014
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Gretex Corporate Services Ltd.
- Registered office
- 127/1, Gram Simbhalka Junardar Paragna, Tehsil and District Saharanpur, Uttar Pradesh
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 36,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹43
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,29,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,58,000 |
| S-HNI (max) | 7 | 21,000 | ₹9,03,000 |
| B-HNI (min) | 8 | 24,000 | ₹10,32,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹10.67 Cr |
About Clara Industries SME
Clara Industries Limited is a recently incorporated public company (September 2, 2021) that acquired the entire running business of M/s Clara Petrochemicals, a proprietorship firm of promoter Ms. Parry Kukreja, through a Business Transfer Agreement dated October 29, 2021. The company manufactures high-end multilayer plastic bags, multilayer plastic rolls, printed films with surface and reverse printing, laminates in 2-, 3-, and 4-layer structures, standing pouches, side gusset pouches, and press & lock pouches. The company also manufactures HDPE bottles, plastic mats, plastic bangles, and engages in plastic packaging machine assembly. The company serves diverse sectors including FMCG, consumer products, hardware tools, hospitality, pharmaceuticals, clothing & hosiery, edible oil, salt, and sugar. The promoter has been in the industry for more than a decade.
Company Analysis
from RHPClara Industries Limited manufactures and supplies flexible plastic packaging solutions including multilayer films, bags, pouches, and related products for FMCG, pharmaceuticals, food, and other consumer sectors.
Clara Industries Limited is a recently incorporated public company (September 2, 2021) that acquired the entire running business of M/s Clara Petrochemicals, a proprietorship firm of promoter Ms. Parry Kukreja, through a Business Transfer Agreement dated October 29, 2021. The company manufactures high-end multilayer plastic bags, multilayer plastic rolls, printed films with surface and reverse printing, laminates in 2-, 3-, and 4-layer structures, standing pouches, side gusset pouches, and press & lock pouches. The company also manufactures HDPE bottles, plastic mats, plastic bangles, and engages in plastic packaging machine assembly. The company serves diverse sectors including FMCG, consumer products, hardware tools, hospitality, pharmaceuticals, clothing & hosiery, edible oil, salt, and sugar. The promoter has been in the industry for more than a decade.
Objects of the Issue
- Working Capital Requirements ₹200.00 Lakhs p.18
- General Corporate Purpose ₹64.46 Lakhs p.18
- To Meet Working Capital Requirements ₹200.00 lakh p.62
- General Corporate Purposes ₹64.46 lakh p.62
- General corporate purposes and working capital requirements
- For details of total expenses of the Issue p.181
Issue Structure
- Total Issue
- ₹301.86 Lakh
- Fresh Issue
- 7,02,000 Equity Shares at ₹43.00 per share (face value ₹10.00 + premium ₹33.00) aggregating ₹301.86 Lakh
- Price Band
- Fixed Price of ₹43.00 per Equity Share
- Lot Size
- 3,000 Equity Shares and in multiples of 3,000 thereafter
- Face Value
- ₹10.00 per Equity Share
Business Model
The company earns revenue by manufacturing and supplying flexible plastic packaging solutions to customers primarily on a purchase order basis. Products include printed films (51 micron and above), multilayer laminates, various types of pouches, HDPE bottles, plastic mats, and plastic bangles. The company also assembles plastic packaging machines for clients as an additional business. The business is not seasonal except for specific products like plastic bangles (peak during Diwali and Karva Chauth) and peanuts packaging (September to January).
Business Segments
SWOT Analysis
- • Established business with over a decade of operating history through proprietorship(p.18)
- • Diversified product portfolio across multiple customer segments(p.18)
- • Advanced manufacturing capability with multilayer packaging solutions(p.18)
- • Quality control infrastructure with testing equipment(p.18)
- • Expanded product portfolio serving diverse industries(p.86)
- • Strategic geographic location reducing logistics costs(p.86)
- • ISO 9001:2015 certification and quality assurance systems(p.86)
- • Semi-automated manufacturing reducing costs and labor wages(p.87)
- • Experienced management with 13+ years in packaging industry(p.87)
- • Zero waste manufacturing with on-site recycling facility(p.85)
- • Experienced leadership with 13+ years in flexible packaging industry(p.107)
- • In-house quality management and testing capabilities(p.153)
- • Diverse product portfolio across multiple sectors(p.153)
- • Established manufacturing and supply brand reputation(p.153)
- • Long-term stable supplier and customer relationships(p.154)
- • Heavy dependence on promoters for business continuity and strategic direction(p.26)
- • Limited operating history as a newly incorporated company with no long-term track record(p.23)
- • Rented facilities and leased machinery not owned by company(p.24)
- • No insurance coverage for company assets and operations(p.26)
- • Unregistered trademark exposing brand protection(p.26)
- • Loan transferred from proprietorship not yet formally transferred with no charge created(p.28)
- • Negative cash flows from operations and investing activities(p.31)
- • Extreme customer concentration with top 5 customers representing 99.99% of revenue(p.33)
- • No long-term contracts with customers creating revenue volatility(p.24)
- • Significant dependence on top 5 customers for revenue(p.95)
- • Factory and machinery on lease arrangements(p.93)
- • Fluctuation in raw material costs impacting margins(p.88)
- • Low capacity utilization at 47.86%(p.93)
- • Very recent incorporation and limited operating history(p.102)
- • High customer concentration risk(p.160)
- • Very recent incorporation with limited operating history as a company(p.173)
- • Significant unsecured debt from related parties and informal lenders(p.140)
- • Promoter litigation exposure involving fraud allegations(p.166)
- • High reliance on bank overdraft facility as working capital source(p.141)
- • India's flexible packaging industry growing at over 35% annually driven by food and pharma sectors(p.18)
- • Significant headroom for expansion given low per capita packaging consumption in India(p.18)
- • Rising demand for modern flexible packaging technologies replacing rigid packaging(p.18)
- • Food processing sector accounting for over 50% of flexible packaging demand providing growth avenue(p.18)
- • Expected industry growth to 18-20% annually and projected market reach of $43.7 billion by 2022(p.18)
- • Expansion of flexible packaging market in India(p.79)
- • Significant headroom for per capita packaging consumption growth(p.79)
- • Goods ban from China increasing domestic market demand(p.88)
- • Rising demand for sustainable and eco-friendly flexible packaging(p.81)
- • Export market expansion opportunities(p.87)
- • Growth in e-commerce driving flexible packaging demand(p.82)
- • Expansion into new geographies to build long-term customer relationships(p.154)
- • Synergies from business transfer of Clara Petrochemicals proprietorship(p.153)
- • Growth through supply chain and operational optimization(p.153)
- • Revenue growth from integrated in-house execution and market skills(p.154)
- • Market opportunity from increasing demand for quality plastic packaging(p.153)
- • Raw material price fluctuations with no long-term supply agreements or control(p.24)
- • Intense competition from organized and unorganized sector affecting pricing and volumes(p.26)
- • COVID-19 pandemic creating ongoing operational uncertainties and potential disruptions(p.27)
- • Regulatory compliance risks including environmental and workplace safety regulations(p.38)
- • Labour shortage and wage inflation risks in manufacturing operations(p.25)
- • Power supply dependency with no alternative sources(p.34)
- • Potential conflict of interest with promoter's other business ventures(p.25)
- • Global economic and political conditions impacting Indian market and company operations(p.29)
- • Intense competition from unorganized players in the sector(p.88)
- • Changing regulatory norms and compliance requirements(p.88)
- • Price sensitivity of customers and competition on pricing(p.95)
- • Commodity price volatility and raw material sourcing risks(p.74)
- • Global pandemic and supply chain disruptions(p.75)
- • Environmental regulations on plastic packaging and single-use plastic bans(p.82)
- • Exposure to fluctuations in raw material costs and input prices(p.160)
- • Seasonal demand variability for certain products(p.153)
- • Intense competition from established and new market entrants(p.160)
- • Macroeconomic slowdown impact on demand(p.160)
- • Regulatory requirements for plastic manufacturing and environmental compliance(p.170)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ms. Parry Kukreja | Promoter | 100.00% | 71.70% |
| Mr. Nikhil Kukreja | Promoter | — | — |
| Ms. Parry Kukreja | Promoter | 77.05% | 55.25% |
| Mr. Nikhil Kukreja | Promoter | 22.95% | 16.46% |
| Ms. Parry Kukreja | Promoter and Managing Director | 77.05% | — |
| Mr. Nikhil Kukreja | Promoter and Executive Director | 22.95% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.