Kalana Ispat
Fixed Price issueSMENSE₹32.59 Cr issue
-31.59%
Listing gain over issue price
Issue size
₹32.59 Cr
1 lot at cut-off
₹1,32,000
Lot size
2,000shares
Open
19 Sep 2024
Close
23 Sep 2024
Allotment
24 Sep 2024
Listing
26 Sep 2024
Listing performance
Issue price
₹66
Listed at
₹45.15
Listing-day close
₹47.40
Latest price
₹17.45
Close on 23 Oct 2026
Listing gain
-31.59%
Return since issue
-73.56%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 19 Sep 2024 – 23 Sep 2024
- Listing date
- 26 Sep 2024
- Face value
- ₹10 per share
- Issue price
- ₹66 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Listing at
- NSE
- Total issue size
- ₹32.59 Cr
- Market cap at offer price
- ₹86.08 Cr
- Promoter holding
- 100.00% → 62.12% pre-issue → post-issue
- ISIN
- INE0T0L01014
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Jawa Capital Services Pvt.Ltd.
- Registered office
- 504, Ashwamegh Avnue, 5th Floor, Nr Mithakhali Underbridge, Mithakhali, 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 | 2,48,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹66
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,32,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,64,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,24,000 |
| B-HNI (min) | 8 | 16,000 | ₹10,56,000 |
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
₹66 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.92 | 1.81 |
| P/E (×) | 22.60 | 36.46 |
| Price to book (×) | 4.76 | — |
| Market cap | — | ₹86.08 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 21.88%
- ROCE
- 21.20%
- Debt / equity
- 0.43
- PAT margin
- 3.21%
- NAV per share
- ₹13.87
- Price to book
- 4.76
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Kalana Ispat
Kalana Ispat Limited, originally incorporated as 'Kalana Ispat Private Limited' on October 15, 2012, was converted to a public limited company on December 21, 2023. The Company is promoted by Mr. Aftabhusen S Khandwawala, Mr. Varghese Joseph Pottakerry, Mr. Gurubaxsing Jamiatsing Bagga and Mr. Sadik Nannabhai Qureshi. The Company manufactures mild steel billets and alloy steel products through an induction furnace-based manufacturing process. It generates revenue through sales to rolling mills and dealers. The Company is based in Gujarat and currently operates a manufacturing unit. To reduce power overheads, it proposes to install a 4 MW DC & 3.5 MW AC solar power plant for captive consumption, and plans forward integration through setting up of a rolling mill.
Company Analysis
from RHPKalana Ispat Limited is a steel manufacturing company engaged in the production of mild steel billets and alloy steel products, operating in the specialty steel sector.
Kalana Ispat Limited, originally incorporated as 'Kalana Ispat Private Limited' on October 15, 2012, was converted to a public limited company on December 21, 2023. The Company is promoted by Mr. Aftabhusen S Khandwawala, Mr. Varghese Joseph Pottakerry, Mr. Gurubaxsing Jamiatsing Bagga and Mr. Sadik Nannabhai Qureshi. The Company manufactures mild steel billets and alloy steel products through an induction furnace-based manufacturing process. It generates revenue through sales to rolling mills and dealers. The Company is based in Gujarat and currently operates a manufacturing unit. To reduce power overheads, it proposes to install a 4 MW DC & 3.5 MW AC solar power plant for captive consumption, and plans forward integration through setting up of a rolling mill.
Steel manufacturingSpecialty steelMild steel production
Objects of the Issue
- Capital Expenditure for Installation of 4 MW DC & 3.5 MW AC Ground Mounted Solar Power Plant - TPSAT Structure ₹2,298.75 Lakhs p.19
- Capital expenditure for setting up of rolling mill at Survey No. 4/1 Taluka Sanand, Mouje Kala village, Ahmedabad by construction of the industrial shed, purchase of equipment/machineries, other assets etc. ₹799.45 Lakhs p.19
- General Corporate Purpose ₹60.88 Lakhs p.19
- Capital Expenditure for Installation of 4 MW DC & 3.5 MW AC Ground Mounted Solar Power Plant - TPSAT Structure ₹2,298.75 lakhs p.71
- Capital expenditure for setting up of rolling mill at Survey No. 4/1 Taluka Sanand, Mouje Kala village, Ahmedabad by construction of the industrial shed, purchase of equipment/machineries, other assets etc. ₹799.45 lakhs p.71
- General Corporate Purpose ₹60.88 lakhs p.71
- Not stated in Part 4 - refer to Objects of the Offer section p.229
Issue Structure
- Total Issue
- ₹3,259.08 Lakhs (Upto 49,38,000 Equity shares of ₹10 each at Issue Price of ₹66 per share)
- Fresh Issue
- ₹3,259.08 Lakhs (49,38,000 Equity Shares of ₹10 each at ₹66 per share)
- Offer for Sale
- NIL
- Price Band
- ₹66 per Equity Share (Fixed Price)
- Lot Size
- 1 Equity Share (or as per stock exchange norms)
- Face Value
- ₹10 per Equity Share
Business Model
The Company manufactures mild steel billets and alloy steel products using an induction furnace-based process. It procures raw materials such as MS scrap, iron ore, silicon manganese, and aluminum ingots from various suppliers and sells finished products (MS billets and alloy steel) to rolling mills and dealers. Revenue is generated from the sale of these products.
Business Segments
Manufactures mild steel billets and alloy steel products through induction furnace-based manufacturing process
Sale of M.S. Billets and Alloy Steel Billets manufactured by the Company
Sale of traded goods such as iron scrap, iron ore and ingots
Casting services for M.S. Billets and Alloy Steel Billets using spare capacity of continuous casting machine
Manufacturing of M.S. Billets and Alloy Steel Billets/Ingots
Trading of metal scraps, sponge iron, M.S. Ingots, and iron ore lumps
Provision of job work and service income
Casting, moulding, and manufacturing of high-quality billets with custom dimensions, alloys and production processes
Purchase and sale of traded steel and iron products
SWOT Analysis
Strengths
- • First public issue with fresh capital raising opportunity(p.3)
- • Experienced promoter management with collective industry experience(p.37)
- • Established customer base with significant revenue generation(p.30)
- • Growing profitability with improved financial performance(p.47)
- • Experienced management team with deep industry expertise(p.113)
- • Qualified technical personnel and quality management systems(p.113)
- • Strong customer and supplier relationships(p.113)
- • Strategic geographic location near ports and rolling mills(p.113)
- • ISO certification for quality management(p.102)
- • Manufacturing facility with established capacity(p.129)
- • Experienced promoter team with deep industry expertise(p.148)
- • Long operational history in the steel sector(p.129)
- • Established manufacturing expertise with metallurgical capabilities(p.192)
- • Strong profitability recovery with 372% increase in PAT(p.202)
- • Improved EBITDA margin from 1.34% to 4.95%(p.199)
- • Significant improvement in Return on Equity to 31.12%(p.199)
- • Strong liquidity position with current ratio of 1.99(p.199)
- • Debt reduction with improved Debt/Equity ratio(p.189)
- • Track record of 3+ years of operations(p.220)
Weaknesses
- • Concentration of business operations in single geography (Gujarat)(p.30)
- • Dependence on few key customers with no long-term contracts(p.31)
- • Significant dependence on few raw material suppliers without long-term agreements(p.32)
- • Rented premises for registered, corporate offices and solar plant site without ownership security(p.35)
- • Limited experience in solar power plant operations and maintenance(p.30)
- • Trademark registration pending with objections raised by authority(p.37)
- • History of delays in statutory compliance (EPF and GST filings)(p.38)
- • Significant debt secured by land and personal property of promoter relative(p.38)
- • Heavy dependence on few customers for revenue(p.86)
- • Relatively low capacity utilization for furnace(p.115)
- • High power consumption as significant expense(p.114)
- • Declining revenue in FY 2023-24(p.103)
- • High dependence on unsecured borrowings from related parties(p.176)
- • Significant contingent VAT litigation exposure(p.182)
- • Substantial outstanding contingent liabilities(p.168)
- • Operating entirely from single manufacturing location(p.129)
- • High customer concentration with 91.73% revenue from top 10 customers(p.207)
- • High supplier concentration with 65.79% purchases from top 10 suppliers(p.207)
- • Revenue declined 11.21% year-over-year(p.202)
- • Working capital borrowings still outstanding(p.189)
- • Pending indirect tax demand of Rs. 42.52 lakhs(p.211)
- • Inventory turnover declined from 13.52 to 10.49 times(p.199)
Opportunities
- • Planned solar power plant installation to reduce energy costs and improve margins(p.33)
- • Forward integration through rolling mill setup to diversify product portfolio(p.33)
- • Growth in Indian steel demand supported by expanding economy(p.18)
- • India as second-largest crude steel producer with significant market potential(p.18)
- • Expansion into new geographic markets beyond Gujarat(p.30)
- • Forward integration through rolling mill setup(p.114)
- • Cost reduction through solar power plant(p.114)
- • Strong steel sector growth trajectory(p.97)
- • India's expanding per capita steel consumption(p.96)
- • Government initiatives supporting specialty steel production(p.101)
- • Expansion into alloy steel products segment(p.129)
- • Growth through diversified product portfolio(p.130)
- • Access to export markets through established IEC(p.129)
- • Setting up renewable energy solar plant for operational cost reduction(p.192)
- • Approved feasibility for captive solar power plant(p.192)
- • Sustainability-aligned business strategy meeting market demands(p.192)
- • Trading segment growth with purchases increasing 578.44%(p.204)
Threats
- • Volatility in raw material prices without long-term supply agreements(p.37)
- • Restricted operational hours due to HTP-IV electricity tariff requirement(p.29)
- • Regulatory changes in electricity tariffs and potential discontinuation of current concessions(p.29)
- • Intense competition from organized and unorganized sector players(p.39)
- • Dependence on third-party transportation providers with risk of cost increases(p.36)
- • Risk of changes in government regulations and policies affecting operations(p.42)
- • Slowdown in Indian economic growth affecting steel demand(p.44)
- • Provisional registration for solar power plant valid for only 6 months(p.29)
- • Intense competition from well-capitalized competitors(p.112)
- • Raw material price volatility and supply fluctuations(p.100)
- • Global steel market slowdown and oversupply(p.96)
- • India transitioning from net exporter to net importer of steel(p.99)
- • Environmental and regulatory compliance costs(p.117)
- • Regulatory compliance risks from multiple labour laws(p.123)
- • Exposure to foreign trade regulations and restrictions(p.127)
- • Fluctuations in raw material import prices and foreign exchange(p.182)
- • Stringent anti-trust and competition law enforcement(p.128)
- • Competition from existing and new entities affecting revenues and profitability(p.193)
- • Uncertainties from pandemic impacts on business and operations(p.193)
- • Changes in customer demands and requirements(p.193)
- • Inflation and turbulence in interest rates and commodity prices(p.193)
- • Changes in government policies and regulatory actions(p.193)
- • Changes in pricing or maintenance policies of equipment manufacturers(p.193)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Varghese Joseph Pottakerry | Promoter | 25.75% | 15.99% |
| Aftabhusen S Khandwawala | Promoter | 25.15% | 15.62% |
| Gurubaxsing Jamiatsing Bagga | Promoter | 14.76% | 9.17% |
| Sadik Nannabhai Qureshi | Promoter | 17.06% | 10.59% |
| Riya Varghese | Promoter Group | 2.47% | 1.53% |
| Pashmin Aftab Khandwawala | Promoter Group | 2.47% | 1.53% |
| Mit Iron and Steel Pvt. Ltd | Promoter Group | 12.34% | 7.67% |
| Mika Steel & Alloys LLP | Promoter Group | 0.00% | 0.00% |
| Mr. Varghese Joseph Pottakerry | Promoter | 25.75% | 15.99% |
| Mr. Aftabhusen S Khandwawala | Promoter | 25.15% | 15.62% |
| Mr. Sadik Nannabhai Qureshi | Promoter | 17.06% | 10.59% |
| Mr. Gurubaxsing Jamiatsing Bagga | Promoter | 14.76% | 9.17% |
| M/s MIT Iron and Steel Pvt. Ltd | Promoter Group | 12.34% | 7.67% |
| Ms. Riya Varghese Pottakerry | Promoter Group | 2.47% | 1.53% |
| Mr. Pashmin A Khandwawala | Promoter Group | 2.47% | 1.53% |
| M/s Mika Steel & Alloys LLP | Promoter Group | 0.00% | 0.00% |
| Varghese Joseph Pottakerry | Promoter/Managing Director | 25.75% | 15.99% |
| Aftabhusen S Khandwawala | Promoter/Executive Director | 25.15% | 15.62% |
| Gurubaxsing Jamiatsing Bagga | Promoter/Non-Executive Director | 14.76% | 9.17% |
| Sadik Nannabhai Qureshi | Promoter | 17.06% | 10.59% |
| Aftabhusen S Khandwawala | Promoter | — | — |
| Varghese Joseph Pottakerry | Promoter | — | — |
| Gurubaxsing Jamiatsing Bagga | Promoter | — | — |
| Sadik Nanabhai Qureshi | Promoter | — | — |
Leadership
Varghese Joseph Pottakerry · Managing Director
Aftabhusen S Khandwawala · Executive Director
Gurubaxsing Jamiatsing Bagga · Non-Executive Director
Nishant Bali · Independent Director
Rachna Sandeep Luthra · Independent Director
Manishi Jain · Company Secretary and Compliance Officer
Manoj Gopinathan Pillai · Chief Financial 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.
Offer documents
Kalana Ispat IPO FAQs
What is the lot size of Kalana Ispat IPO?
The minimum lot size of Kalana Ispat IPO is 2,000 shares. One lot costs ₹1,32,000 at the cut-off price.
When does Kalana Ispat IPO open and close?
Kalana Ispat IPO opened for subscription on 19 Sep 2024 and closed on 23 Sep 2024.
What is the listing date of Kalana Ispat IPO?
Kalana Ispat IPO listed on 26 Sep 2024.