Kataria Industries
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 16 Jul 2024 – 19 Jul 2024
- Listing date
- 24 Jul 2024
- Face value
- ₹10 per share
- Issue price
- ₹96 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Total issue size
- ₹54.57 Cr
- Market cap at offer price
- ₹207 Cr
- Promoter holding
- 100.00% → 73.60% pre-issue → post-issue
- ISIN
- INE0SVY01018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Interactive Financial Services Ltd.
- Registered office
- 34-38 and 44 Industrial Area, Madhya 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 |
|---|---|---|---|
| Anchor investor · within QIB | 16,17,600 | — | — |
| Market maker | 2,88,000 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹96
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,15,200 |
| S-HNI (min) | 2 | 2,400 | ₹2,30,400 |
| S-HNI (max) | 8 | 9,600 | ₹9,21,600 |
| B-HNI (min) | 9 | 10,800 | ₹10,36,800 |
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 (₹) | 6.32 | 4.65 |
| P/E (×) | 15.19 | 20.65 |
| Price to book (×) | 4.24 | — |
| Market cap | — | ₹207 Cr |
Key performance indicators
- Return on net worth
- 22.03%
- ROCE
- 17.40%
- Debt / equity
- 1.38
- PAT margin
- 2.95%
- NAV per share
- ₹28.71
- Price to book
- 4.24
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Kataria Industries
Kataria Industries Limited, incorporated on May 11, 2004 and converted to a public company in December 2023, is a manufacturing company based in Ratlam, Madhya Pradesh. The company operates two manufacturing plants at Ratlam equipped with essential machinery, infrastructure, and in-house testing facilities. The company manufactures a wide variety of products including LRPC Strands, steel wires, post-tensioning anchorage systems (anchor cones, anchor heads, wedges), HDPE single wall corrugated sheathing ducts, couplers, and aluminium conductors. These products are utilized in various infrastructure sectors including roads, bridges, flyovers, metros, railways, high-rise buildings, atomic reactors, LNG tanks, and power transmission and distribution lines. The company's products are ISO 9001:2015 certified for quality management systems. The company generates revenue from manufacturing and supply of these specialized products to domestic and international customers.
Company Analysis
from RHPKataria Industries Limited manufactures and supplies Low Relaxation Pre-Stressed Concrete (LRPC) Strands, Steel Wires, Post-tensioning Anchorage Systems, HDPE Sheathing Ducts, Couplers, and Aluminium Conductors for infrastructure, construction, railways, metros, and power transmission sectors.
Kataria Industries Limited, incorporated on May 11, 2004 and converted to a public company in December 2023, is a manufacturing company based in Ratlam, Madhya Pradesh. The company operates two manufacturing plants at Ratlam equipped with essential machinery, infrastructure, and in-house testing facilities. The company manufactures a wide variety of products including LRPC Strands, steel wires, post-tensioning anchorage systems (anchor cones, anchor heads, wedges), HDPE single wall corrugated sheathing ducts, couplers, and aluminium conductors. These products are utilized in various infrastructure sectors including roads, bridges, flyovers, metros, railways, high-rise buildings, atomic reactors, LNG tanks, and power transmission and distribution lines. The company's products are ISO 9001:2015 certified for quality management systems. The company generates revenue from manufacturing and supply of these specialized products to domestic and international customers.
Objects of the Issue
- Capital Expenditure for plant and machineries ₹175.00 lakhs p.16
- Repayment of Debt ₹4,600.00 lakhs p.16
- General corporate purposes p.16
- Capital Expenditure for purchase of machineries ₹175.00 lakhs p.69
- Repayment of Debt ₹4,600.00 lakhs p.69
- General Corporate Purpose [●] (not to exceed 25% of gross proceeds) p.73
- Meeting Public Issue Expenses ₹177.00 lakhs p.73
- Not explicitly stated in this section of the document
Issue Structure
- Total Issue
- Upto 56,85,000 Equity Shares of face value of ₹10/- each aggregating to ₹[●] (amount to be determined)
- Fresh Issue
- Upto 56,85,000 Equity Shares of Face Value of ₹10/- each at ₹[●] per Equity Share aggregating to ₹[●] Lakhs
- Offer for Sale
- Nil
- Price Band
- To be determined by the Company in consultation with the BRLM and advertised in newspapers at least two working days prior to Bid/Issue Opening Date
- Lot Size
- [●] equity shares and in multiples of [●] equity shares thereafter
- Face Value
- ₹10.00 per equity share
Business Model
The company manufactures and supplies specialized engineering products (LRPC strands, steel wires, PT anchorage systems, HDPE ducts, couplers, and aluminium conductors) to infrastructure, construction, and power sectors. Revenue is generated through direct sales to wholesalers and end-users without formal long-term supply contracts. The company operates on a made-to-order basis, typically placing orders with raw material suppliers after receiving firm orders from customers.
Business Segments
SWOT Analysis
- • Diverse product portfolio serving multiple infrastructure sectors(p.15)
- • ISO certified quality management systems(p.15)
- • In-house testing facility ensuring product conformance(p.15)
- • Consistent revenue generation with stable margins(p.23)
- • Established customer relationships with regular orders(p.25)
- • Strong promoter backing and industry experience(p.31)
- • Approved supplier in major infrastructure projects across metros, railways, and highways(p.98)
- • Integrated in-house manufacturing with ISO 9001:2015 certification and stringent quality control(p.99)
- • Comprehensive product portfolio covering entire LRPC installation value chain(p.99)
- • Established long-standing customer relationships with repeat business(p.99)
- • Experienced management team with hands-on involvement in operations and strategy(p.100)
- • Significant capacity expansion in core products with modern manufacturing infrastructure(p.96)
- • Established manufacturing operations with diversified product portfolio(p.129)
- • Recognition and awards from industry bodies and government(p.131)
- • Track record of revenue growth(p.185)
- • Diversified manufacturing portfolio across multiple wire and steel products(p.186)
- • Improved cost management and margin expansion YoY(p.186)
- • Strong EBITDA growth despite modest revenue growth(p.187)
- • Improved profitability with PAT margin expansion(p.187)
- • Strong positive operating cash flow generation(p.188)
- • Heavy reliance on top 10 suppliers for purchases(p.30)
- • Significant customer concentration risk(p.25)
- • No long-term written contracts with customers(p.30)
- • Contingent liabilities from tax disputes(p.23)
- • Unsecured loans from promoters and relatives repayable on demand(p.35)
- • Pending regulatory compliance issues and amendments(p.33)
- • Outstanding tax litigation across multiple jurisdictions(p.24)
- • High leverage with debt-to-equity ratio of 1.38 as of March 31, 2024(p.79)
- • Significant revenue concentration with top 10 customers representing 51.72% of revenue(p.98)
- • High raw material supply concentration with top 10 suppliers representing 92.54% of purchases(p.98)
- • Declining capacity utilization in key PTS division segments(p.106)
- • Limited export presence at 4.45% of revenue despite strategic export focus(p.99)
- • High financial leverage with debt-to-equity ratio of 1.38(p.183)
- • Declining current ratio indicating weakening liquidity position(p.183)
- • Low debt service coverage ratio of 0.52(p.183)
- • Contingent liabilities related to TDS defaults(p.179)
- • Significant dependence on inter-corporate deposits for financing(p.166)
- • High customer concentration risk(p.189)
- • High finance costs burden from debt(p.186)
- • Significant contingent GST liabilities(p.199)
- • Outstanding litigation involving customer payment defaults(p.198)
- • Growing infrastructure development sector in India(p.15)
- • Increasing power sector capacity expansion(p.15)
- • Strong growth in engineering sector driven by capacity expansion(p.15)
- • India's competitive advantage in capital goods manufacturing(p.15)
- • Expansion of manufacturing capacity and new equipment deployment(p.23)
- • Significant government infrastructure investment with capital outlay increased 33% to Rs 10 lakh crore(p.85)
- • Massive railway expansion with highest-ever capital outlay of Rs 2.40 lakh crore(p.85)
- • Rapid expansion of metro networks in multiple cities creating sustained demand(p.84)
- • Planned expansion into new product lines including Bridge Bearings, Expansion Joints and Rebar Couplers(p.100)
- • Strategic international market entry with Dubai conformity certification achieved(p.100)
- • Growing infrastructure investment in North-East and Tier 2/3 cities(p.94)
- • Strategic expansion into new geographic markets and customer segments(p.129)
- • Growing export revenue with foreign exchange earnings(p.182)
- • Enhancement of product portfolio through LRPC Strands and accessories(p.131)
- • Government incentive schemes for steel industry(p.124)
- • Revenue growth from new PTS (Pre-stressed Concrete) Division(p.187)
- • Expansion of manufacturing capacity with fixed asset investments(p.187)
- • Potential for capital structure optimization post-IPO(p.233)
- • Raw material price volatility and supply disruptions(p.23)
- • Intense competition from domestic and international players(p.31)
- • Electricity supply disruptions and cost volatility(p.32)
- • Labour-intensive operations with wage inflation and strike risks(p.31)
- • Natural and man-made disasters affecting operations(p.30)
- • Heavy dependence on third-party transportation providers(p.28)
- • Foreign exchange volatility affecting international sales(p.28)
- • Regulatory changes and compliance requirements(p.39)
- • Vulnerability to construction cycle slowdowns affecting infrastructure demand(p.94)
- • Intense competition in fragmented pre-stressed concrete wire industry(p.110)
- • Commodity price volatility for key raw materials including steel wire rod(p.110)
- • Dependence on project-based procurement with no long-term supply agreements(p.99)
- • Regulatory compliance burden across multiple jurisdictions for export operations(p.117)
- • Geographic concentration of manufacturing in Ratlam creating operational risk(p.96)
- • Raw material price volatility and supply chain risks(p.185)
- • Intense competition from existing and new market entrants(p.185)
- • Regulatory and compliance burden from multiple labor and environmental laws(p.123)
- • Economic slowdown or recession impacting demand(p.185)
- • GST and customs duty compliance risks(p.123)
- • Significant indirect tax show cause notices totaling ₹8.69 crores(p.199)
- • Raw material cost volatility and inflation impact(p.186)
- • Power and logistics cost pressures(p.187)
- • Environmental compliance and pollution-related litigation(p.203)
- • Moderate revenue growth despite increased assets and capacity(p.186)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Arun Kataria | Promoter | 28,00,000 shares (17.67%) | — |
| Sunil Kataria | Promoter | 17,50,000 shares (11.04%) | — |
| Anoop Kataria | Promoter | 18,09,774 shares (11.42%) | — |
| Arun Kataria | Promoter | 17.67% | [●] |
| Sunil Kataria | Promoter | 11.04% | [●] |
| Anoop Kataria | Promoter | 11.42% | [●] |
| Anokhilal Kataria | Promoter Group | 7.65% | [●] |
| Smt. Nagina Devi Kataria | Promoter Group | 7.56% | [●] |
| Smt. Rakhi Kataria | Promoter Group | 9.50% | [●] |
| Smt. Chanda Devi Kataria | Promoter Group | 9.50% | [●] |
| Madanlal Kataria | Promoter Group | 8.77% | [●] |
| Pankaj Kataria | Promoter Group | 9.56% | [●] |
| Smt. Sushila Devi Kataria | Promoter Group | 6.91% | [●] |
| Yash Kataria | Promoter Group | 0.42% | [●] |
| Sunil Kataria | Promoter/Non-Executive Director | 11.04% | — |
| Arun Kataria | Promoter/Managing Director | 17.67% | — |
| Anoop Kataria | Promoter/Whole Time Director | 11.42% | — |
| Sunil Kataria | Promoter | — | — |
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.