Kalahridhaan Trendz
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 15 Feb 2024 – 20 Feb 2024
- Listing date
- 23 Feb 2024
- Face value
- ₹10 per share
- Issue price
- ₹45 per share
- Lot size
- 3,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹22.49 Cr
- Market cap at offer price
- ₹77.34 Cr
- Promoter holding
- 96.22% → 68.24% pre-issue → post-issue
- ISIN
- INE02M801018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Interactive Financial Services Ltd.
- Registered office
- 57 Ashra Industrial Estate, B/H Mahalaxmi Fabrics, Nr.Narol Cross Road, Gujarat
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 | 2,52,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹45
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,35,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,70,000 |
| S-HNI (max) | 7 | 21,000 | ₹9,45,000 |
| B-HNI (min) | 8 | 24,000 | ₹10,80,000 |
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 |
|---|---|---|
| EPS (₹) | 5.46 | 5.57 |
| P/E (×) | 8.24 | 8.08 |
| Price to book (×) | 1.51 | — |
| Market cap | — | ₹77.34 Cr |
Key performance indicators
- Return on net worth
- 36.75%
- ROCE
- 17.39%
- Debt / equity
- 3.19
- PAT margin
- 3.62%
- NAV per share
- ₹29.74
- Price to book
- 1.51
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Kalahridhaan Trendz
Kalahridhaan Trendz Limited, incorporated on May 27, 2016 and converted to public limited status on November 27, 2017, is engaged in manufacturing and trading of embroidered fabrics with in-house embroidery capabilities, grey cloth trading, and textile processing through dyeing and printing. The company operates two embroidery knitting machines with a capacity of 15,000 meters per day and has expanded into forward-integrated textile dying and printing operations. Revenue generation comes from direct sales of finished textiles, embroidery job work for external clients, and grey cloth trading. The company operates manufacturing facilities in Narol, Ahmedabad, Gujarat.
Company Analysis
from DRHPKalahridhaan Trendz Limited manufactures and trades embroidered fabrics, grey cloths, and processes textiles through dyeing and printing for suiting, shirting, and dress materials in the Indian textile industry.
Kalahridhaan Trendz Limited, incorporated on May 27, 2016 and converted to public limited status on November 27, 2017, is engaged in manufacturing and trading of embroidered fabrics with in-house embroidery capabilities, grey cloth trading, and textile processing through dyeing and printing. The company operates two embroidery knitting machines with a capacity of 15,000 meters per day and has expanded into forward-integrated textile dying and printing operations. Revenue generation comes from direct sales of finished textiles, embroidery job work for external clients, and grey cloth trading. The company operates manufacturing facilities in Narol, Ahmedabad, Gujarat.
Objects of the Issue
- Working capital requirement ₹1,607.00 Lakhs p.18
- General corporate purposes [●] p.18
- Working capital requirement ₹1,607.00 lakhs p.61
- General corporate purposes p.61
- Meeting Public Issue Expenses p.61
Issue Structure
- Total Issue
- Upto 50,00,000 Equity Shares aggregating to ₹[●]
- Fresh Issue
- 50,00,000 Equity Shares of Face Value of ₹10/- each
- Price Band
- [●] per equity share
- Lot Size
- [●] Equity Shares
- Face Value
- ₹10 per Equity Share
Business Model
Revenue is earned through manufacturing and selling embroidered fabrics and suiting/shirting materials, providing embroidery services on a job-work basis for external clients, trading in grey cloths, and providing textile processing services (dyeing and printing) on job-work basis. Top ten customers contributed 66.28% of FY 2022-23 revenue; top ten suppliers accounted for 64.44% of material purchases in the same period.
Business Segments
SWOT Analysis
- • Integrated textile operations with embroidery, dyeing, and printing capabilities(p.18)
- • Established customer base with revenue concentration in top customers(p.24)
- • Dedicated manufacturing capacity with embroidery and printing equipment(p.18)
- • Growing revenue trajectory and profitability(p.35)
- • Experienced promoters with 40+ years in textiles(p.114)
- • Strategic location with good connectivity for material movement(p.90)
- • Quality assurance at every manufacturing stage(p.90)
- • Unique product type with high market demand(p.90)
- • Modern state-of-art R&D laboratory(p.87)
- • Computerized automatic embroidery machines(p.94)
- • Rented registered office with lease renewal risk(p.24)
- • Heavy concentration on top customers and suppliers(p.24)
- • Outstanding litigation involving company and directors(p.24)
- • History of delayed GST and TDS returns filing(p.24)
- • No long-term agreements with customers or suppliers(p.24)
- • Predominantly job-work labour force with no formal agreements(p.26)
- • High working capital requirements(p.29)
- • Negative cash flows from operations in prior periods(p.30)
- • Group companies with similar business interests create conflict of interest(p.26)
- • Trade receivables concentration creates credit risk(p.30)
- • High debt-to-equity ratio of 3.19x as of FY 2022-23(p.68)
- • Geographic concentration in Gujarat (93.37% of sales in FY 2022-23)(p.95)
- • Limited permanent employee base of only 12 employees(p.94)
- • Heavy dependence on job work contract labor (250 workers)(p.94)
- • Rented manufacturing facilities with no owned assets(p.95)
- • Large growth in Indian textile exports and global demand(p.18)
- • Production-Linked Incentives (PLI) scheme supporting textile manufacturing(p.18)
- • Expansion of Indian apparel market(p.18)
- • Target to increase Indian textile exports to US$100 billion by 2030(p.18)
- • Projected growth in Indian textile market(p.18)
- • Indian textile industry expected to reach $190 billion by FY26(p.81)
- • Government target of $100 billion textile exports by 2030(p.76)
- • Production-Linked Incentive Scheme for textile manufacturers worth Rs. 10,683 crore(p.76)
- • Ready-made garment exports likely to surpass $30 billion by 2027 at 12-13% CAGR(p.77)
- • 100% FDI permitted in textile sector, attracting foreign investment(p.78)
- • Growing technical textiles market projected to reach $23.3 billion by 2027(p.79)
- • Dependence on prevailing economic conditions in India(p.35)
- • Manufacturing facility disruptions from natural calamities and pandemics(p.25)
- • Volatility in raw material prices and supply(p.27)
- • Intense competition in textile industry with pricing pressures(p.31)
- • Changes in tax laws and regulations including GST(p.34)
- • Dependence on third-party transportation and logistics(p.27)
- • Labour supply constraints and wage inflation(p.26)
- • Natural calamities and disasters impact on Indian economy(p.37)
- • Political instability and terrorism affecting Indian business(p.37)
- • Foreign exchange and investment restrictions(p.35)
- • Demand fluctuations based on end-customer product success(p.26)
- • Highly competitive market with organized and unorganized players(p.90)
- • Exposure to commodity price fluctuations for textiles and dyes(p.61)
- • Dependence on grey cloth sourcing availability and pricing(p.85)
- • Regulatory compliance burden in environmental and pollution control(p.94)
- • Exchange rate volatility affecting export competitiveness(p.61)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Niranjan Agarwal | Promoter | 60.11% | 42.63% |
| Aditya Agarwal | Promoter | 20.08% | 14.24% |
| Sunitadevi Agarwal | Promoter Group | 19.80% | 14.04% |
| Aditya Agarwal | Promoter / Whole Time Director | 60.11% | 42.63% |
| Niranjan Agarwal | Promoter / Managing Director | 20.08% | 14.24% |
| Sunitadevi Agarwal | Promoter Group Member | 19.80% | — |
| Niranjan Dwarkaprasad Agarwal | Promoter | 60.11% | — |
| Aditya Agarwal | Promoter | 20.08% | — |
| Sunitadevi Niranjan Agarwal | Promoter Group | 19.81% | — |
Leadership
Auto-extracted from the company's DRHP 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 DRHP before relying on it.