KN Agri Resources SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- Listing date
- 28 Mar 2022
- Face value
- ₹10 per share
- Issue price
- ₹75 per share
- Lot size
- 1,600 shares
- Total issue size
- ₹49.38 Cr
- Market cap at offer price
- ₹187 Cr
- Promoter holding
- 99.99% → 73.66% pre-issue → post-issue
- ISIN
- INE0KNW01016
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- KN Building, Subhash Road, Ramsagarpara, Raipur, 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 |
|---|---|---|---|
| Anchor investor · within QIB | 18,73,600 | — | — |
| Market maker | 3,32,800 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹75
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,20,000 |
| S-HNI (min) | 2 | 3,200 | ₹2,40,000 |
| S-HNI (max) | 8 | 12,800 | ₹9,60,000 |
| B-HNI (min) | 9 | 14,400 | ₹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.
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 (₹) | 14.22 | — |
| P/E (×) | 5.27 | — |
| Market cap | — | ₹187 Cr |
Key performance indicators
- Return on net worth
- 16.51%
- ROCE
- 24.98%
- Debt / equity
- 0.14
- NAV per share
- ₹86.16
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About KN Agri Resources SME
Incorporated in 1987 as Itarsi Oils & Flours Private Limited, KN Agri Resources Limited has evolved into an agro-based enterprise with core operations in solvent extraction, oil refining, and agro-commodity trading. The company manufactures a diverse product portfolio including soya de-oiled cake (soya meal), Hipro Soya Meal, soya refined oil, soya crude oil, degummed oil, soya lecithin, acid oil, soya husk, cotton seed oil, refined rapeseed and rapeseed de-oiled cake. Under its trading division, it trades in various agro-commodities such as maize, gram, pulses, sugar, soyabean, and wheat. The company also operates four wind energy power plants with a combined capacity of 4.60 MW across Madhya Pradesh, Maharashtra, and Rajasthan. Its manufacturing operations are concentrated in three units located in Itarsi and Khandwa (Madhya Pradesh).
Company Analysis
from RHPKN Agri Resources is an agro-based company engaged in solvent extraction & oil refining and trading of agricultural commodities, operating primarily across food processing and commodity trading sectors.
Incorporated in 1987 as Itarsi Oils & Flours Private Limited, KN Agri Resources Limited has evolved into an agro-based enterprise with core operations in solvent extraction, oil refining, and agro-commodity trading. The company manufactures a diverse product portfolio including soya de-oiled cake (soya meal), Hipro Soya Meal, soya refined oil, soya crude oil, degummed oil, soya lecithin, acid oil, soya husk, cotton seed oil, refined rapeseed and rapeseed de-oiled cake. Under its trading division, it trades in various agro-commodities such as maize, gram, pulses, sugar, soyabean, and wheat. The company also operates four wind energy power plants with a combined capacity of 4.60 MW across Madhya Pradesh, Maharashtra, and Rajasthan. Its manufacturing operations are concentrated in three units located in Itarsi and Khandwa (Madhya Pradesh).
Objects of the Issue
- To meet the Working Capital requirements ₹4,000.00 lakhs p.23
- General Corporate Purposes ₹467.54 lakhs p.23
- To meet Issue Expenses ₹470.46 lakhs p.23
- To meet Working Capital requirements ₹4,000.00 lakhs p.86
- General Corporate Purpose ₹467.54 lakhs p.86
- To meet issue expenses ₹470.46 lakhs (estimated) p.86
Issue Structure
- Total Issue
- ₹4,938.00 lakhs
- Fresh Issue
- ₹4,938.00 lakhs (65,84,000 equity shares at ₹75 per share)
- Offer for Sale
- Nil
- Price Band
- ₹71 (Floor Price) to ₹75 (Cap Price)
- Lot Size
- 1,600 equity shares and in multiples of 1,600 equity shares thereafter
- Face Value
- ₹10 per equity share
Business Model
Revenue is generated through two primary streams: (1) Manufacturing and sale of processed soya and edible oil products with production capacity at three manufacturing units, and (2) Trading of agro-commodities procured from third-party suppliers. For F.Y. 2020-21, revenue from trading activities was ₹316.78 crore representing 24.4% of total revenue from operations, while revenue from soya products (meal and refined oil) was ₹983.1 crore or 75.7% of revenue from operations. The company also generates revenue from wind energy generation.
Business Segments
SWOT Analysis
- • Wide range of soyabean products including oil, meal, and derivatives(p.112)
- • ISO 9001:2015 and ISO 22000:2018 certifications ensuring quality management and food safety(p.112)
- • Integrated in-house manufacturing with significant installed capacity across three plants(p.113)
- • Strategic location of manufacturing units in Madhya Pradesh, a top soyabean-producing state(p.113)
- • Experienced management team with three decades of industry experience(p.113)
- • Robust financial performance with consistent EBITDA and PAT growth(p.114)
- • Long operational history with established market presence(p.130)
- • Diversified revenue streams from manufacturing and power generation(p.168)
- • Experienced management with substantial industry tenure(p.157)
- • Consistent historical revenue growth(p.132)
- • Strategic plant locations with competitive raw material access(p.211)
- • Diversified product portfolio and capacity(p.211)
- • Quality certifications and industry recognition(p.211)
- • Strong financial position and low debt(p.220)
- • Resilience in essential business during COVID-19(p.211)
- • No customer concentration above 10%(p.192)
- • Do not own key operating properties; Registered Office, Corporate Office and Marketing Offices are leased or used without formal agreements(p.37)
- • Significant portion of capacity unused; Unit II capacity utilisation only 21.4% in 2020-21(p.119)
- • Flour mill installed capacity of 21,000 MT not being utilised due to lower demand(p.119)
- • Marketing offices operated without valid rent agreements with property owners(p.122)
- • Dependence on few large customers for revenue; major customers include Adani Wilmar, Cargill, Bunge and Ruchi Soya(p.112)
- • Heavy working capital requirements; Company's business is working capital intensive with major capital invested in trade receivables and inventories(p.87)
- • Concentration of shareholding among promoters(p.151)
- • High dependence on limited number of customers(p.134)
- • Significant outstanding litigation involving promoters(p.134)
- • Seasonal working capital volatility from commodity trading(p.167)
- • Dependence on few major customers(p.217)
- • Multiple tax liabilities and pending disputes(p.200)
- • Litigation exposure from multiple tax assessments(p.224)
- • Related party transaction complexity(p.246)
- • Expand domestic geographic reach to 15 states; currently majority revenue from MP, Gujarat, West Bengal and Maharashtra(p.114)
- • Expand product portfolio into soya grits, flour, flakes and ethanol manufacturing(p.114)
- • Brand building and promotion of CLASSIC and KHAN-PAN brands to increase market recall and retail shelf visibility(p.114)
- • India's food processing sector expected to reach $535 billion by 2025-26 with government support initiatives(p.103)
- • Growing edible oil demand in India with per capita consumption increasing; vegetable oil economy 4th largest globally(p.107)
- • International export potential; already exporting to Netherlands, Singapore, Bangladesh and Nepal(p.112)
- • Expansion through Raipur Mega Food Park associate company(p.132)
- • Growth in agri-commodities market driven by rising domestic consumption(p.131)
- • Renewable energy expansion through existing windmill portfolio(p.168)
- • Growth through capacity expansion(p.212)
- • Increase in sale despite pandemic(p.211)
- • Revenue growth trajectory(p.214)
- • Domestic and export market expansion(p.214)
- • Fragmented and highly competitive industry with large established players and small niche competitors(p.120)
- • Price competition and dependence on commodity prices; major competitors include Ruchi Soya, Gujarat Ambuja, Gokul Agro, Kriti Nutrients(p.120)
- • Heavy reliance on soyabean seed availability and price volatility as primary raw material(p.120)
- • Regulation and compliance risks from multiple legislations including Factories Act, Food Safety Standards Act, and labour laws(p.123)
- • India's high dependence on vegetable oil imports (60% of consumption) creates exposure to global price and supply risks(p.107)
- • Weather and climate risks affecting soyabean production as oilseeds largely grown under rain-fed conditions(p.107)
- • Exposure to commodity price volatility and input cost fluctuations(p.185)
- • Regulatory compliance burden from multiple GST jurisdictions(p.125)
- • Environmental and pollution control regulatory requirements(p.126)
- • Government control over essential commodity pricing and supply(p.129)
- • Foreign exchange volatility affecting export operations(p.170)
- • Economic volatility and market fluctuations(p.211)
- • Seasonal business volatility(p.217)
- • Regulatory and taxation changes(p.212)
- • Foreign currency exchange risk(p.192)
- • Interest rate exposure on floating rate borrowings(p.192)
- • Competitive market conditions(p.217)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Vijay Shrishrimal | Promoter | 4.59% | 3.38% |
| Mr. Sanjay Shrishrimal | Promoter | 4.59% | 3.38% |
| Mr. Dhirendra Shrishrimal | Promoter | 4.59% | 3.38% |
| K.N. Resources Private Limited | Promoter Group | 24.27% | 17.88% |
| Anant Trafina Private Limited | Promoter Group | 30.88% | 22.74% |
| Anant Counter Trade Private Limited | Promoter Group | 31.07% | 22.89% |
| Mr. Vijay Shrishrimal | Promoter | 4.59% | 3.38% |
| Mr. Sanjay Shrishrimal | Promoter | 4.59% | 3.38% |
| Mr. Dhirendra Shrishrimal | Promoter | 4.59% | 3.38% |
| K.N. Resources Private Limited | Promoter Group | 24.27% | 17.88% |
| Anant Trafina Private Limited | Promoter Group | 30.88% | 22.75% |
| Anant Counter Trade Private Limited | Promoter Group | 31.07% | 22.89% |
| Vijay Shrishrimal | Promoter | 4.59% | — |
| Sanjay Shrishrimal | Promoter | 4.59% | — |
| Dhirendra Shrishrimal | Promoter | 4.59% | — |
| K.N. Resources Private Limited | Promoter Group | 24.27% | — |
| Anant Trafina Private Limited | Promoter Group | 30.87% | — |
| Anant Counter Trade Private Limited | Promoter Group | 31.07% | — |
| Vijay Shrishrimal | Promoter / Chairman and Managing Director | — | — |
| Sanjay Shrishrimal | Promoter / Whole Time Director | — | — |
| Dhirendra Shrishrimal | Promoter / Whole Time Director | — | — |
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.