KCK Industries
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Jun 2022 – 30 Jun 2022
- Listing date
- 08 Jul 2022
- Face value
- ₹10 per share
- Issue price
- ₹30 per share
- Lot size
- 4,000 shares
- Total issue size
- ₹4.50 Cr
- Market cap at offer price
- ₹16.50 Cr
- Promoter holding
- 77.91% → 56.66% pre-issue → post-issue
- ISIN
- INE0J1E01027
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Navigant Corporate Advisors Ltd.
- Registered office
- Plot No 484b, Village Daria Khatauni No 95, Khasra 9/7, Chandigarh
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 | 76,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹30
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 32,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 36,000 | ₹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 (₹) | 0.48 | — |
| P/E (×) | 62.50 | — |
| Market cap | — | ₹16.50 Cr |
Key performance indicators
- Return on net worth
- 4.58%
- NAV per share
- ₹10.52
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About KCK Industries
KCK Industries Limited was originally incorporated as Kck Sales Private Limited on 19th March, 2013 in Chandigarh and converted to a public limited company in October 2020. The company is engaged in trading and distribution of high-quality combed and carded cotton yarns (Ne 4 to Ne 40 in single and multifold) and knitted fabrics suitable for apparels, undergarments, terry towels, denims, medical fabrics, furnishing fabrics and industrial fabrics. The company's trading business also includes high quality chemicals and dyes for textiles, leather, and paper industries, as well as construction chemicals. In 2020-21, the company acquired a rice milling plant from Punjab National Bank located at Sunam Lehra Road, which is a fully integrated and automatic facility with capacity of 12 Ton/hour. The company processes non-basmati and basmati rice using state-of-the-art plant and machinery, targeting North Indian markets including Delhi, Punjab, Gujarat, Haryana and Uttar Pradesh. The promoters are Mr. Jagdish Prasad Arya and Mrs. Reena Sharma.
Company Analysis
from RHPKCK Industries Limited trades and distributes combed and carded cotton yarns, chemicals and dyes for textiles and related industries, and processes basmati and non-basmati rice.
KCK Industries Limited was originally incorporated as Kck Sales Private Limited on 19th March, 2013 in Chandigarh and converted to a public limited company in October 2020. The company is engaged in trading and distribution of high-quality combed and carded cotton yarns (Ne 4 to Ne 40 in single and multifold) and knitted fabrics suitable for apparels, undergarments, terry towels, denims, medical fabrics, furnishing fabrics and industrial fabrics. The company's trading business also includes high quality chemicals and dyes for textiles, leather, and paper industries, as well as construction chemicals. In 2020-21, the company acquired a rice milling plant from Punjab National Bank located at Sunam Lehra Road, which is a fully integrated and automatic facility with capacity of 12 Ton/hour. The company processes non-basmati and basmati rice using state-of-the-art plant and machinery, targeting North Indian markets including Delhi, Punjab, Gujarat, Haryana and Uttar Pradesh. The promoters are Mr. Jagdish Prasad Arya and Mrs. Reena Sharma.
Objects of the Issue
- To part finance the requirement of Incremental Working Capital ₹336.00 Lakhs p.24
- To meet General corporate purposes ₹84.00 Lakhs p.24
- To meet the expenses of the Issue ₹30.00 Lakhs p.24
- To part finance the requirement of Working Capital ₹336.00 lacs p.87
- To meet General corporate purposes ₹84.00 lacs p.87
- To meet the expenses of the Issue ₹30.00 lacs p.87
- Acquisition of Land, Building and Plant & Machinery for expansion of rice milling and food processing operations
Issue Structure
- Total Issue
- ₹450.00 Lakhs
- Fresh Issue
- 15,00,000 Equity Shares aggregating to Rs. 450.00 Lakhs
- Offer for Sale
- Not Applicable
- Price Band
- ₹30 per Equity Share (Fixed Price)
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue through trading and distribution of cotton yarns, chemicals and dyes to customers in the apparel and garment, industrial fabrics, furnishing fabrics, towels and denims industries. It also generates revenue through manufacturing/processing and distribution of basmati and non-basmati rice through its processing facility. The company has a strong network of wholesalers, semi-wholesalers and retailers for rice distribution.
Business Segments
SWOT Analysis
- • Diverse product portfolio across textiles, chemicals, and food processing(p.20)
- • Established market presence in North India with geographic distribution network(p.21)
- • Modern processing infrastructure with automatic equipment(p.21)
- • Experienced management team with significant industry expertise(p.21)
- • Diversified product portfolio across textiles, chemicals, and rice(p.114)
- • Quality-focused manufacturing and processing with rigorous testing(p.114)
- • Experienced promoters with significant industry expertise(p.114)
- • Strong and cordial relationships with customers and suppliers(p.114)
- • Modern, integrated rice processing plant with state-of-the-art machinery(p.112)
- • Established market presence with diversified product portfolio in chemicals, dyes, and yarn(p.138)
- • Experienced management team with significant industry expertise(p.139)
- • Strong network of wholesalers and retailers(p.139)
- • State-of-the-art rice processing facility with modern technology(p.139)
- • No labour disputes or employee unionization(p.141)
- • Clean compliance and governance record(p.144)
- • Heavy dependence on few major customers for revenue(p.29)
- • Significant reliance on small number of raw material suppliers(p.28)
- • No long-term supply agreements with raw material suppliers(p.28)
- • Promotional group entity has negative net worth(p.38)
- • Rented office premises without ownership(p.31)
- • Unsecured loans from directors and corporates repayable on demand(p.37)
- • High working capital intensity with payment delays from customers(p.122)
- • Dependence on suppliers for product availability in trading segment(p.122)
- • Limited scale relative to peer group companies(p.113)
- • Lack of registered trademark for company branding(p.124)
- • Recent entry into rice manufacturing with limited operating history(p.112)
- • Significant dependence on top customers for revenue generation(p.193)
- • Heavy dependence on top suppliers for raw materials(p.193)
- • Negative net worth in promoter group company(p.160)
- • High short-term borrowing relative to shareholder funds(p.193)
- • Significant unsecured borrowings from promoters and related entities(p.176)
- • Growing Indian textile market with strong export potential(p.21)
- • Expanding Indian chemical industry with double-digit growth(p.22)
- • Strong growth in Indian rice market and exports(p.23)
- • Expansion of geographical reach to reduce regional concentration(p.39)
- • Large addressable market in Indian textiles expected to grow significantly(p.106)
- • Expansion of geographical reach in underserved domestic markets(p.121)
- • Strong growth in Indian rice exports with expanding international markets(p.109)
- • Production-linked incentive scheme for textiles sector supporting industry growth(p.103)
- • Growing demand for specialty chemicals in Indian market(p.107)
- • Strategic acquisition opportunities to expand market presence(p.121)
- • Expansion into value-added chemicals and speciality products(p.138)
- • Growth in rice processing and milling business across North India(p.139)
- • Expansion of manufacturing segment beyond current capacity(p.139)
- • Vertical integration through manufacturing business segment(p.139)
- • Volatility in raw material prices and supply disruptions(p.27)
- • Geographic concentration of sales in few states(p.29)
- • COVID-19 pandemic impact on business operations and demand(p.30)
- • Excessive government regulations in chemical business(p.31)
- • Fire hazard risks with flammable cotton yarn commodity(p.31)
- • Dependence on third-party transportation with potential service disruptions(p.32)
- • Highly competitive fragmented market with larger competitors(p.40)
- • Intense competition from established competitors in textiles and chemicals(p.122)
- • Volatility in raw material prices impacting profitability(p.122)
- • Exposure to regulatory and environmental compliance costs(p.122)
- • Fluctuations in commodity prices affecting input costs(p.122)
- • Global economic recovery uncertainty and pandemic-related supply disruptions(p.98)
- • Risk of cartel formation in supply chains(p.122)
- • Increasing competition in the chemicals and dyes trading industry(p.193)
- • Fluctuations in commodity and raw material prices(p.192)
- • Economic slowdown impacting demand(p.192)
- • Regulatory changes in Punjab affecting manufacturing operations(p.135)
- • Dependence on government approvals for agricultural produce trading(p.137)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Jagdish Prasad Arya | Promoter | 24.50% | 17.82% |
| Mrs. Reena Sharma | Promoter | 28.52% | 20.74% |
| Mr. Jagdish Prasad Arya | Promoter | 24.50% | 17.82% |
| Mrs. Reena Sharma | Promoter | 28.52% | 20.74% |
| Mr. Shrikant Sharma | Promoter Group | 4.02% | 2.92% |
| Ms. Sulochna | Promoter Group | 2.29% | 1.67% |
| Mr. Divyanshu Pathak | Promoter Group | 2.52% | 1.84% |
| M/s. Sheorayan Engineers & Associates Pvt Ltd | Promoter Group | 16.06% | 11.68% |
| Jagdish Prasad Arya | Promoter | 24.50% | — |
| Reena Sharma | Promoter | 28.52% | — |
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.