Kalyani Cast-Tech
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 08 Nov 2023 – 10 Nov 2023
- Listing date
- 17 Nov 2023
- Face value
- ₹10 per share
- Issue price
- ₹139 per share
- Lot size
- 1,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹30.11 Cr
- Market cap at offer price
- ₹99.81 Cr
- Promoter holding
- 100.00% → 69.83% pre-issue → post-issue
- ISIN
- INE0N6U01018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Gretex Corporate Services Ltd.
- Registered office
- B-144 Second Floor, DDA Shed Phase-1, Okhla Industrial Area, Phase i, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 5,40,000 | — | — |
| Market maker | 3,62,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹139
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,39,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,78,000 |
| S-HNI (max) | 7 | 7,000 | ₹9,73,000 |
| B-HNI (min) | 8 | 8,000 | ₹11,12,000 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 16.03 | — |
| P/E (×) | 8.67 | — |
| Market cap | — | ₹99.81 Cr |
Key performance indicators
- Return on net worth
- 56.45%
- ROCE
- 67.56%
- Debt / equity
- 0.34
- PAT margin
- 12.70%
- NAV per share
- ₹28.40
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Kalyani Cast-Tech
Kalyani Cast-Tech Limited, incorporated in 2012 and converted to a public company in 2022, operates a Class A foundry with manufacturing facilities in Rewari, Haryana. The company initially commenced operations with a casting unit producing MG Coupler Components, CI Brake Blocks, and components for Indian Railways and industrial sectors including mining, cement, chemicals, fertilizer, and power plants. In 2018, the company diversified into cargo container manufacturing and now produces ISO containers (20', 25', 40', 42'), dwarf containers, cuboid containers, and special containers for parcel cargo and two & three wheelers. The company utilizes no-bake moulding systems with automatic sand plants and serves a diverse client base primarily in the rail transportation sector.
Company Analysis
from DRHPKalyani Cast-Tech Limited manufactures cargo containers and foundry castings for the Indian rail transportation and industrial sectors.
Kalyani Cast-Tech Limited, incorporated in 2012 and converted to a public company in 2022, operates a Class A foundry with manufacturing facilities in Rewari, Haryana. The company initially commenced operations with a casting unit producing MG Coupler Components, CI Brake Blocks, and components for Indian Railways and industrial sectors including mining, cement, chemicals, fertilizer, and power plants. In 2018, the company diversified into cargo container manufacturing and now produces ISO containers (20', 25', 40', 42'), dwarf containers, cuboid containers, and special containers for parcel cargo and two & three wheelers. The company utilizes no-bake moulding systems with automatic sand plants and serves a diverse client base primarily in the rail transportation sector.
Objects of the Issue
- Working Capital Requirements ₹2,200.00 Lakhs p.25
- General Corporate Purpose p.25
- Working Capital Requirements ₹2,200.00 lakhs p.74
- General Corporate Purposes [●] p.75
- —
- Objects of the Offer not detailed in this part of the document
Issue Structure
- Total Issue
- Up to ₹ [●] Lakhs (comprising up to 21,35,000 equity shares)
- Fresh Issue
- Up to 21,35,000 Equity Shares of ₹10.00 each for cash at a price of ₹ [●] per Equity Share (including premium of ₹ [●] per Equity Share) aggregating to ₹ [●] Lakhs
- Offer for Sale
- Nil (Not Applicable as the entire issue constitutes fresh issue of equity shares)
- Price Band
- To be decided by the Company in consultation with BRLM and advertised at least two working days prior to Bid/Issue Opening Date
- Lot Size
- [●] and in multiples of [●] thereafter; subject to a minimum allotment of [●] Equity Shares
- Face Value
- ₹10.00 per Equity Share
Business Model
The company generates revenue through the manufacture and sale of two main product lines: (1) foundry castings including finished components and specialized railway parts, and (2) cargo containers for rail transport of goods via the Indian rail network. The company uses cost-plus pricing based on material costs and manufacturing processes, selling primarily to Indian Railways, mining companies, cement industry, chemical and fertilizer companies, and power plants through purchase orders.
Business Segments
SWOT Analysis
- • Diversified product portfolio in rail freight and container manufacturing(p.24)
- • Class A foundry with advanced manufacturing technology(p.24)
- • State-of-the-art manufacturing facility with modern technology(p.24)
- • Strong growth trajectory and operational expansion(p.24)
- • Strong revenue growth and profitability improvement(p.25)
- • Manufacturing capability with efficient production processes(p.79)
- • Product innovation and development(p.79)
- • Reputable clients and established long-term contracts(p.79)
- • Experienced and qualified management team(p.79)
- • Strong financial performance with high profitability(p.82)
- • Exceptional return on equity demonstrating efficient capital deployment(p.82)
- • Experienced promoter with IIT Madras background and railway sector expertise(p.125)
- • RDSO Class A Foundry approval enabling railway supplies(p.101)
- • State-of-the-art manufacturing facility with integrated operations(p.100)
- • Strong financial performance with improving margins(p.104)
- • Multiple quality certifications and regulatory approvals(p.103)
- • Established customer relationships across railways, mining, cement and power sectors(p.100)
- • Pioneer in innovative container technology including FRP flooring(p.100)
- • Experienced promoter and management team with proven track record(p.184)
- • Integrated manufacturing facility with advanced technology and state-of-the-art production(p.184)
- • Strong financial performance with significant revenue growth and profitability improvement(p.162)
- • Proven ability to generate cash and improve return on equity(p.157)
- • Diversified product portfolio including ISO containers and specialized castings(p.184)
- • High dependence on limited key customers(p.29)
- • Rented premises with no ownership security(p.31)
- • Past default on loan payments(p.30)
- • Failure to maintain gratuity provisions for employees(p.30)
- • Missing regulatory approvals and licenses(p.31)
- • Lack of registered trademark and intellectual property protection(p.33)
- • Outstanding litigation and non-compliance issues(p.28)
- • Dependence on limited number of customers for revenue concentration risk(p.79)
- • Working capital intensive business model requiring significant financing(p.75)
- • Existing debt obligations and borrowing requirements(p.49)
- • Limited financial resources relative to scale requirements(p.106)
- • Limited availability of skilled labor(p.106)
- • Limited pricing power due to emerging competition(p.106)
- • Underutilized production capacity(p.110)
- • Significant portion of manufacturing space held on lease(p.107)
- • Significant outstanding litigation and contingent liabilities(p.175)
- • Outstanding tax demands and TDS liabilities(p.172)
- • High inventory levels relative to operations(p.168)
- • Outstanding outstanding dues to trade creditors(p.175)
- • Dependence on limited customer base with concentrated trade receivables(p.169)
- • Growth in India Rail Freight Transport Market(p.24)
- • Expansion into railway transportation sector(p.24)
- • Diversification across multiple industrial sectors(p.24)
- • Working capital expansion through IPO proceeds(p.25)
- • India's strong economic growth positioning as third-largest economy globally(p.91)
- • Expanding railway freight transport market with government investment initiatives(p.93)
- • Growing cargo container transport demand in railway modernization(p.94)
- • Expanding foundry market driven by automotive sector growth(p.97)
- • Government's Make in India initiative promoting domestic manufacturing(p.92)
- • Government thrust under Make in India Policy(p.106)
- • Growing domestic container demand with positive government initiatives(p.106)
- • Railway's plan to expand dwarf and double-stack container trains(p.101)
- • Increasing market share opportunities in niche segment(p.106)
- • Expansion into new geographic regions with existing products(p.106)
- • Capacity expansion through improved plant utilization(p.106)
- • Growth through brand building and digital marketing initiatives(p.106)
- • Expansion of export markets and geographic reach(p.170)
- • Growing Indian logistics and container industry driven by modal logistics growth(p.184)
- • Capacity to increase market share through improved production and quality(p.164)
- • Technology leadership through FRP flooring innovation(p.184)
- • Scalable business model with ability to handle multiple product segments(p.157)
- • Volatile raw material prices beyond company control(p.31)
- • No price escalation clauses in customer contracts(p.31)
- • Manufacturing disruption risks from external factors(p.30)
- • Highly competitive industry with price pressure(p.34)
- • COVID-19 pandemic uncertainty and operational impact(p.32)
- • Regulatory changes and compliance requirements(p.44)
- • Power supply uncertainty and cost impact(p.39)
- • Economic and market volatility in India and globally(p.33)
- • Global economic slowdown and reduced demand impacting revenue(p.88)
- • Political instability and changes in Indian economic policy(p.45)
- • Global financial market volatility affecting Indian economy(p.45)
- • Natural calamities and climate-related disruptions(p.46)
- • Terrorist attacks and civil unrest affecting market sentiment(p.46)
- • Lack of skilled workforce in foundry and manufacturing sectors(p.98)
- • Changes in government policies affecting regulatory framework(p.106)
- • Fluctuations in raw material prices(p.106)
- • Rising labour wages and input costs(p.106)
- • Market volatility with many players entering and exiting(p.106)
- • Dependence on Indian Railways as key customer(p.108)
- • High capital requirements for entry into specialized manufacturing(p.108)
- • Exposure to volatility in raw material costs and input prices(p.195)
- • Intense competition from organized and unorganized sector players(p.196)
- • Dependence on Indian Railways and logistics industry cyclicality(p.184)
- • Interest rate risk and credit risk exposure(p.195)
- • Regulatory and compliance risks in manufacturing and export operations(p.175)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Naresh Kumar | Promoter/Managing Director | 33.51% (part of 66.83% promoter shareholding) | — |
| Mr. Javed Aslam | Promoter | Part of 66.83% promoter shareholding | — |
| Mr. Nathmal Bangani | Promoter | Part of 66.83% promoter shareholding | — |
| Ms. Kamala Kumari Jain | Promoter | Part of 66.83% promoter shareholding | — |
| Ms. Muskan Bangani | Promoter | Part of 66.83% promoter shareholding | — |
| Mr. Naresh Kumar | Promoter | 41.30% | [●] |
| Mr. Javed Aslam | Promoter | 19.94% | [●] |
| Mr. Nathmal Bangani | Promoter | 2.49% | [●] |
| Ms. Kamala Kumari Jain | Promoter | 1.84% | [●] |
| Ms. Muskan Bangani | Promoter | 1.25% | [●] |
| Ms. Jayashree Kumar | Promoter Group | 7.49% | [●] |
| M/s. Jnk Works Private Limited | Promoter Group | 1.22% | [●] |
| M/s. Visisth Services Limited | Promoter Group | 19.34% | [●] |
| Mr. Feeroz Khan | Promoter Group | 4.99% | [●] |
| Mr. Naresh Kumar | Promoter | 41.30% | — |
| Mr. Javed Aslam | Promoter | — | — |
| Mr. Nathmal Bangani | Promoter | — | — |
| Ms. Kamala Kumari Jain | Promoter | — | — |
| Ms. Muskan Bangani | Promoter | — | — |
| Naresh Kumar | Promoter | 41.30% | — |
| Javed Aslam | Promoter | 19.94% | — |
| Nathmal Bangani | Promoter | 2.49% | — |
| Kamala Kumari Jain | Promoter | 1.84% | — |
| Muskan Bangani | Promoter | 1.25% | — |
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.