Kahan Packaging
Fixed Price issueSME₹5.76 Cr issue
+90.00%
Listing gain over issue price
Issue size
₹5.76 Cr
1 lot at cut-off
₹1,28,000
Lot size
1,600shares
Open
06 Sep 2023
Close
08 Sep 2023
Allotment
13 Sep 2023
Listing
15 Sep 2023
Listing performance
Issue price
₹80
Listed at
₹152
Listing-day close
₹159.60
Latest price
₹9.97
Close on 22 Oct 2026
Listing gain
+90.00%
Return since issue
-87.54%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 06 Sep 2023 – 08 Sep 2023
- Listing date
- 15 Sep 2023
- Face value
- ₹10 per share
- Issue price
- ₹80 per share
- Lot size
- 1,600 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹5.76 Cr
- Market cap at offer price
- ₹21.76 Cr
- Promoter holding
- 99.95% → 73.49% pre-issue → post-issue
- ISIN
- INE04T901017
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- 212, Jhalawar Service Premises, E S Patanwalla Compound, LBS Marg, Ghatkopar West, Maharashtra
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 | 40,000 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹80
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,28,000 |
| S-HNI (min) | 2 | 3,200 | ₹2,56,000 |
| S-HNI (max) | 7 | 11,200 | ₹8,96,000 |
| B-HNI (min) | 8 | 12,800 | ₹10,24,000 |
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
₹80 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 10.34 | — |
| P/E (×) | 7.74 | — |
| Market cap | — | ₹21.76 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 59.79%
- ROCE
- 19.77%
- Debt / equity
- 4.48
- PAT margin
- 5.90%
- NAV per share
- ₹17.29
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Kahan Packaging
Kahan Packaging Limited was incorporated on February 19, 2013, and commenced commercial operations on March 14, 2013. The Company operates in the packaging industry, specifically manufacturing customized bulk packaging solutions through the production of PP/HDPE woven fabric-laminated, HDPE/PP woven sacks, woven fabric-unllaminated, PP woven bags with and without liners, and printed laminates for flexible packaging. These woven polymer-based products are offered in different weights, sizes, and colors according to customer specifications and sold on a B2B basis to manufacturers in various industries including agro-pesticides, cement, chemical, fertilizer, and food products sectors. The Company operates two manufacturing facilities in Asangaon, Thane, Maharashtra, with a cumulative production capacity of 2,600 metric tons per annum. Revenue for FY 2023, FY 2022, and FY 2021 was ₹1,751.79 lakhs, ₹1,587.95 lakhs, and ₹1,211.78 lakhs respectively.
Company Analysis
from RHPKahan Packaging Limited manufactures and supplies polypropylene and high-density polyethylene woven fabrics and sacks for bulk packaging solutions in the agro-pesticides, cement, chemical, fertilizer, and food products industries.
Kahan Packaging Limited was incorporated on February 19, 2013, and commenced commercial operations on March 14, 2013. The Company operates in the packaging industry, specifically manufacturing customized bulk packaging solutions through the production of PP/HDPE woven fabric-laminated, HDPE/PP woven sacks, woven fabric-unllaminated, PP woven bags with and without liners, and printed laminates for flexible packaging. These woven polymer-based products are offered in different weights, sizes, and colors according to customer specifications and sold on a B2B basis to manufacturers in various industries including agro-pesticides, cement, chemical, fertilizer, and food products sectors. The Company operates two manufacturing facilities in Asangaon, Thane, Maharashtra, with a cumulative production capacity of 2,600 metric tons per annum. Revenue for FY 2023, FY 2022, and FY 2021 was ₹1,751.79 lakhs, ₹1,587.95 lakhs, and ₹1,211.78 lakhs respectively.
packagingagro-pesticidescementchemicalfertilizerfood products
Objects of the Issue
- To meet working capital requirements ₹400.00 lakhs p.20
- General Corporate Purposes ₹94.07 lakhs p.20
- To meet working capital requirements ₹400.00 lakhs p.63
- General Corporate Purpose ₹94.07 lakhs p.65
- General corporate purposes p.200
Issue Structure
- Total Issue
- ₹576.00 Lakhs
- Fresh Issue
- 7,20,000 Equity Shares of face value of ₹10 each at an issue price of ₹80 per share aggregating to ₹576.00 Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹80 per Equity Share
- Lot Size
- 1,600 Equity Shares
- Face Value
- ₹10 per Equity Share
Business Model
B2B manufacturer of customized woven polymer packaging solutions; manufactures products to customer specifications and sells bulk packaging materials to manufacturers in multiple industries; generates revenue from operations through sale of woven fabrics, sacks, bags, and printed laminates.
Business Segments
Manufacturing and supply of polypropylene (PP) and high-density polyethylene (HDPE) woven fabric-laminated, HDPE/PP woven sacks, woven fabric-unllaminated, PP woven bags with and without liners, printed laminates for flexible packaging, and other woven polymer-based products in different weights, sizes, and colors as per customer specifications
Polypropylene woven fabric made by weaving strips or threads of PP together, used for packaging in agro-pesticides, cement, chemical, fertilizer, and food products industries. Laminated versions combine woven fabric with a plastic film layer using heat and pressure for enhanced strength, durability, and barrier properties. Unlaminated versions are single-layered structures suitable for packaging, sheltering, and covering of products.
PP woven bags produced by interweaving polypropylene tapes in two directions. Bags can be with or without liner. Bags with liners provide additional protection against moisture, contaminants, or leakage for products at risk of leaking. Used for packaging agricultural products like grains, pulses, seeds and sugar, as well as sand, fodder, chemicals, cement, and metal parts.
Flexible packaging materials using multi-color (up to 8 color) roto-gravure printing on materials including polyester, nylon, BOPP, foil, LDPE, HDPE, polypropylene, and paper with two-sided printing capabilities. These materials conform to product shapes and offer advantages including versatility, lightweight, cost-effectiveness, enhanced product protection, and lower carbon footprint during transportation.
Manufacturing of HDPE, PP woven sacks, fabrics, bags, tubes, rolls, sheets, laminated bags, and multi-layer bags for packaging applications
Manufacture and supply of Polypropylene (PP)/High Density Polyethylene (HDPE) Woven Fabric-Laminated, HDPE/PP woven sacks, Woven Fabric-Un-Laminated, PP Woven Bag, PP Woven Bag with Liner, Printed Laminates for Flexible Packaging
SWOT Analysis
Strengths
- • Established manufacturing presence with two factories in Asangaon, Thane district(p.27)
- • Commercial operations commenced in 2013 with over a decade of industry experience(p.20)
- • Customized bulk packaging solutions catering to multiple industries(p.20)
- • Revenue growth trajectory with improving profitability(p.21)
- • Wide range of customized bulk packaging products(p.91)
- • In-house manufacturing with vertically integrated production control(p.90)
- • Experienced management team with 25+ years sector expertise(p.92)
- • Strong long-term relationships with customers and suppliers(p.91)
- • Modern manufacturing facilities with recent capacity expansion(p.90)
- • Established market presence with 10+ years of operations in packaging(p.111)
- • Diversified product portfolio including HDPE, PP Woven Sacks, laminates and flexible packaging(p.111)
- • Experienced promoter team with 25+ years in manufacturing and packaging(p.127)
- • Revenue growth trajectory showing strong upward trend(p.137)
- • Improved profitability with PAT growing from Rs. 1.57 Lakhs (FY 2021) to Rs. 103.38 Lakhs (FY 2023)(p.137)
- • In-house manufacturing control enabling quality consistency(p.169)
- • Strategic location near Mumbai providing operational advantages(p.169)
- • Strong profitability growth trajectory(p.172)
- • High return on net worth demonstrating capital efficiency(p.164)
- • Significant revenue growth over multiple years(p.171)
Weaknesses
- • Extreme customer concentration with top 5 customers accounting for 97% of FY2023 revenue(p.25)
- • Severe geographical concentration with 98.82% revenue from Maharashtra in FY2023(p.27)
- • Heavy dependence on single business segment—woven fabrics(p.27)
- • Raw materials sourced from limited suppliers with 72.12% of purchases from top 10 suppliers(p.27)
- • Low capacity utilization of 49.81% as of FY2023 against 2,600 metric tons per annum installed capacity(p.29)
- • Rented premises for registered office and Factory-II with non-registration irregularities(p.28)
- • Unregistered trademarks creating intellectual property vulnerability(p.28)
- • High leverage with total borrowings of ₹773.90 lakhs as of March 31, 2023(p.32)
- • Significant working capital requirements with major portions tied up in inventories and receivables(p.32)
- • History of regulatory non-compliance including non-filed board resolutions and AS-15 violations(p.28)
- • Negative operating cash flows in FY2022 of ₹(124.86) lakhs(p.35)
- • High dependency on limited geographic market—98%+ revenue from Maharashtra(p.92)
- • Moderate capacity utilization at ~50% despite 2,600 MT installed capacity(p.91)
- • Small, early-stage company with limited scale relative to listed peers(p.98)
- • Minimal workforce of ~8 employees requiring heavy reliance on contract labor(p.97)
- • Recently expanded product (flexible packaging) accounts for only ~1% of revenue(p.93)
- • Heavy dependence on bank borrowings with debt-to-equity ratio of 4.48x(p.162)
- • High finance costs representing significant burden at Rs. 56.54 Lakhs (FY 2023)(p.137)
- • Limited liquidity with current ratio of 1.11x indicating tight working capital(p.163)
- • Concentrated production facilities with only two factories both in Thane district(p.111)
- • Significant inventory holding with high working capital requirements (111 days inventory turnover)(p.163)
- • Extreme customer concentration risk(p.174)
- • High financial leverage pre-IPO(p.175)
- • Significant reliance on external logistics partners(p.169)
- • Promoters require personal guarantee on bank facilities(p.166)
- • Single manufacturing location concentration(p.169)
Opportunities
- • Global packaging industry growing at CAGR of 2.8% to reach $1.05 trillion by 2024(p.20)
- • Indian packaging sector growing at CAGR of 22-25% and positioned as fifth largest sector(p.20)
- • Expansion into new geographical markets beyond Maharashtra concentration(p.27)
- • IPO proceeds earmarked for working capital expansion and general corporate purposes(p.20)
- • Rapid growth in Indian packaging sector at 22-25% CAGR(p.84)
- • Significant untapped per capita consumption growth—India at 8.6 kg vs 42 kg in Germany(p.84)
- • Expanding end-user demand from agro, cement, chemical, fertilizer and food sectors(p.92)
- • Domestic market penetration in states beyond Maharashtra(p.92)
- • Portfolio diversification into higher-margin flexible packaging segment(p.92)
- • Make in India policy supporting domestic manufacturing hub development(p.83)
- • Maharashtra Industrial Policy targets attracting investments and creating employment(p.106)
- • Growing market demand evidenced by introduction of new product category (printed laminates for flexible packaging)(p.112)
- • Established regulatory framework supports structured growth in plastic waste management(p.103)
- • Capacity expansion with recent establishment of Factory-II in FY 2022-23(p.112)
- • Access to credit facilities through established banking relationships and government-backed schemes(p.148)
- • Recent expansion into flexible packaging printing segment(p.169)
- • Growing demand for lightweight sustainable packaging materials(p.169)
- • Diversification across multiple end-user industries(p.169)
- • Potential for migration to main board and larger capital markets(p.198)
Threats
- • No long-term agreements with customers creating demand volatility risk(p.25)
- • No long-term agreements with raw material suppliers exposing to supply disruptions(p.27)
- • Raw material price volatility subject to commodity fluctuations and global conditions(p.27)
- • Intense competition from larger established competitors with greater resources(p.31)
- • Price-sensitive market requiring continuous competitive pricing to maintain margins(p.29)
- • Risk of alternative packaging materials due to technological change and environmental concerns(p.29)
- • Dependence on third-party transportation with no definitive agreements(p.33)
- • Vulnerability to Indian economic slowdown and inflation affecting demand and costs(p.39)
- • COVID-19 pandemic creating ongoing operational and demand uncertainties(p.38)
- • Exposure to natural disasters and calamities in Maharashtra where all operations are concentrated(p.40)
- • Regulatory risk from changing environmental and labor laws affecting manufacturing(p.33)
- • Political instability and policy changes in India affecting business operations(p.40)
- • Competition from larger, better-resourced organized players(p.98)
- • Price volatility and supply chain dependency on imported/concentrated raw material sources(p.91)
- • Regulatory risks from environmental and packaging standards compliance(p.99)
- • Cyclicality and sensitivity to end-user industry demand fluctuations(p.90)
- • Price and quality as primary competitive factors in a commoditized market(p.98)
- • Exposure to input price volatility particularly in raw materials (HDPE, PP)(p.137)
- • Environmental regulations impose compliance costs and operational constraints(p.103)
- • Regulatory requirements on plastic waste management and hazardous waste disposal(p.103)
- • Cyclical nature of packaging industry dependent on downstream manufacturing and consumer demand(p.157)
- • Rising compliance costs from multiple labor laws and statutory obligations(p.102)
- • Competition from larger packaging manufacturers and potential new entrants(p.105)
- • Reliance on single commodity raw material (HDPE/PP)(p.170)
- • Exposure to fluctuating operating costs(p.169)
- • Vulnerability to technological obsolescence(p.169)
- • Intense competition in packaging sector(p.169)
- • Business disruption from natural disasters(p.169)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Prashant Jitendra Dholakia | Promoter | 33.00% | 24.26% |
| Rohit Jitendra Dholakia | Promoter | 33.00% | 24.26% |
| Prashant Jitendra Dholakia | Promoter | 33.00% | 24.26% |
| Rohit Jitendra Dholakia | Promoter | 33.00% | 24.26% |
| Jagruti Rohit Dholakia | Promoter Group & Director | 16.55% | 12.17% |
| Purvi Prashant Dholakia | Promoter Group & Director | 16.95% | 12.46% |
| Anvi Rohit Dholakia | Promoter Group | 0.40% | 0.29% |
| Jainam Prashant Dholakia | Promoter Group | 0.05% | 0.04% |
| Prashant Jitendra Dholakia | Promoter/Chairman & Managing Director | 33.00% | — |
| Rohit Jitendra Dholakia | Promoter/Whole Time Director | 33.00% | — |
| Rohit Jitendra Dholakia | Promoter/Promoter Group | — | — |
| Jagruti Rohit Dholakia | Promoter/Promoter Group | — | — |
| Prashant Jitendra Dholakia | Promoter/Promoter Group | — | — |
| Purvi Prashant Dholakia | Promoter/Promoter Group | — | — |
Leadership
Prashant Jitendra Dholakia · Chairman & Managing Director
Rohit Jitendra Dholakia · Whole Time Director
Purvi Prashant Dholakia · Whole Time Director & CFO
Jagruti Rohit Dholakia · Non-Executive Director
Naman Haresh Patel · Independent Director
Tushar Rameshchandra Shah · Independent Director
Mithun Patel · Company Secretary & Compliance Officer
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.
Kahan Packaging IPO FAQs
What is the lot size of Kahan Packaging IPO?
The minimum lot size of Kahan Packaging IPO is 1,600 shares. One lot costs ₹1,28,000 at the cut-off price.
When does Kahan Packaging IPO open and close?
Kahan Packaging IPO opened for subscription on 06 Sep 2023 and closed on 08 Sep 2023.
What is the listing date of Kahan Packaging IPO?
Kahan Packaging IPO listed on 15 Sep 2023.