Kotyark Industries SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 21 Oct 2021 – 25 Oct 2021
- Listing date
- 02 Nov 2021
- Face value
- ₹10 per share
- Issue price
- ₹51 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹11.26 Cr
- Market cap at offer price
- ₹42.20 Cr
- Promoter holding
- 98.51% → 72.22% pre-issue → post-issue
- ISIN
- INE0J0B01017
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Beeline Broking Ltd.
- Registered office
- A-3, 2nd Floor, Shree Ganesh Nagar, Housing Society, Ramakaka Temple Road, Chhani, 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 | 1,12,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹51
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,02,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,04,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,18,000 |
| B-HNI (min) | 10 | 20,000 | ₹10,20,000 |
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 |
|---|---|---|
| Market cap | — | ₹42.20 Cr |
About Kotyark Industries SME
Kotyark Industries Limited is primarily engaged in the manufacturing of biodiesel, which is an alternative source of renewable energy that can substitute for traditional fossil fuels like coal, firewood, and lignite. The company was incorporated on December 30, 2016 as a private limited company and later converted to a public limited company on August 5, 2021. It manufactures biodiesel from raw materials including vegetable oil, mutton tallow, used cooking oil, and methanol at its facility in Sirohi, Rajasthan. The company serves towards renewable green energy and sustainable development through environmentally friendly technology that reduces greenhouse gas emissions. The biodiesel is used in vehicles for public and private transport as well as various equipment and generator sets. The company made a transition from trading business to manufacturing operations starting May 2019.
Company Analysis
from RHPKotyark Industries Limited manufactures biodiesel (biofuel) as an alternative renewable energy source to replace traditional fossil fuels for use in vehicles, equipment, and generators.
Kotyark Industries Limited is primarily engaged in the manufacturing of biodiesel, which is an alternative source of renewable energy that can substitute for traditional fossil fuels like coal, firewood, and lignite. The company was incorporated on December 30, 2016 as a private limited company and later converted to a public limited company on August 5, 2021. It manufactures biodiesel from raw materials including vegetable oil, mutton tallow, used cooking oil, and methanol at its facility in Sirohi, Rajasthan. The company serves towards renewable green energy and sustainable development through environmentally friendly technology that reduces greenhouse gas emissions. The biodiesel is used in vehicles for public and private transport as well as various equipment and generator sets. The company made a transition from trading business to manufacturing operations starting May 2019.
Objects of the Issue
- To Meet Working Capital Requirement ₹830.00 Lakhs p.19
- General Corporate Expenses ₹236.08 Lakhs p.19
- Public Issue Expenses ₹60.00 Lakhs p.19
- To Meet Working Capital Requirement ₹830.00 Lakhs p.69
- General Corporate Purposes ₹236.08 Lakhs p.69
- Public Issue Expenses ₹60.00 Lakhs p.70
- Working capital requirement p.190
- General corporate purposes p.190
- Issue expenses p.190
Issue Structure
- Total Issue
- 22,08,000 Equity Shares aggregating to ₹1,126.08 Lakhs
- Fresh Issue
- 22,08,000 Equity Shares of ₹10/- each for cash at a price of ₹51.00 per Equity Share aggregating to ₹1,126.08 Lakhs
- Price Band
- ₹51.00 per Equity Share (including a Share Premium of ₹41.00 per Equity Share)
- Face Value
- ₹10/- per Equity Share
Business Model
The company manufactures and sells biodiesel. It procures raw materials from suppliers and manufactures biodiesel at its facility in Sirohi, Rajasthan. It has entered into marketing agreements with retailers who operate static and mobile outlets for distribution of the biodiesel to end-users. The company conducts business on a purchase order basis depending on customer requirements for energy generation.
Business Segments
SWOT Analysis
- • Company positioned in growing renewable energy sector with biofuels gaining policy support(p.16)
- • Established manufacturing operations post-May 2019 with production history(p.24)
- • Promoter brings significant industry experience in biofuels sector(p.35)
- • Experienced promoter with 24 years in industry(p.87)
- • Long-standing customer relationships(p.88)
- • Cost-effective production and timely fulfillment(p.88)
- • Scalable business model(p.88)
- • Strong supplier relationships(p.89)
- • Quality assurance standards(p.89)
- • Eco-friendly renewable product(p.89)
- • Well-established manufacturing facility with adequate infrastructure(p.169)
- • Experienced management with 24 years of industry experience(p.163)
- • Long-standing customer relationships generating repeat business(p.164)
- • Quality assurance and adherence to stringent standards(p.165)
- • Established relationships with suppliers enabling reliable sourcing(p.165)
- • Eco-friendly products serving renewable energy demand(p.165)
- • Established manufacturing facility with adequate machinery and technology(p.170)
- • Reliable raw material sourcing from local suppliers(p.170)
- • Dedicated power infrastructure with backup capacity(p.170)
- • Strong customer relationships and market reputation(p.170)
- • Dual revenue channel potential (wholesale and retail)(p.170)
- • Cost-effective integrated offerings with quality focus(p.171)
- • Very limited financial history for a new manufacturing company(p.24)
- • Extreme customer concentration with top 10 customers representing 87.66% of revenue(p.26)
- • Extreme supplier concentration with top 10 suppliers accounting for 99.19% of purchases(p.26)
- • Heavy debt burden relative to equity base(p.27)
- • Unsecured loans from Promoter and Director that can be recalled at any time(p.28)
- • Negative cash flows in prior years indicate operational challenges(p.31)
- • No long-term supply contracts, exposing company to price and supply fluctuations(p.27)
- • High contingent liabilities and restricted operational property not owned(p.25)
- • One Director lacks documented educational qualifications(p.29)
- • Outstanding litigation including tax proceedings(p.20)
- • Corporate governance issues and past non-compliances with Companies Act(p.28)
- • Working capital intensive business(p.69)
- • Low capacity utilization(p.95)
- • Low bargaining power with suppliers(p.90)
- • Working capital intensive business model(p.166)
- • Low bargaining power with suppliers(p.166)
- • Low capacity utilization at manufacturing facility(p.169)
- • Dependence on single or few major customers(p.168)
- • Small employee base limiting operational capacity(p.170)
- • Significant debt obligation relative to equity(p.178)
- • Material litigation involving promoter and group company regarding GST compliance(p.181)
- • Revenue volatility with revenue decline from FY2019 to FY2020(p.174)
- • Negative operating cash flow in FY2020(p.175)
- • Government target for biofuel blending creates significant market growth potential(p.16)
- • India pursuing renewable energy promotion as per National Mission(p.16)
- • Working capital investment to expand operations and customer base(p.19)
- • Expand into neighboring states(p.90)
- • Increase production at existing facility(p.90)
- • Government support for biofuels sector(p.86)
- • Expand retail presence through mobile outlets(p.96)
- • Growing national demand for renewable energy(p.84)
- • Increase production capacity at existing manufacturing facility(p.166)
- • Expand market presence to neighboring states(p.166)
- • Improve operational efficiencies through economies of scale(p.165)
- • Expand existing customer base and cross-sell new products(p.165)
- • Government support for biodiesel manufacturing and retail expansion(p.163)
- • Expansion of retail outlet network significantly(p.170)
- • Focus on maintaining and growing existing customer base(p.170)
- • Growing demand for biofuels as global industry expands(p.170)
- • Expansion of distribution channels and market coverage(p.170)
- • Bio-fuel prices may exceed conventional fossil fuels making products less competitive(p.25)
- • Declining fossil fuel prices could reduce biofuel demand(p.25)
- • Low entry barriers enabling competitive new market entrants(p.26)
- • Government incentives may attract many competitors(p.26)
- • User resistance to switching from conventional fuels(p.24)
- • Sole manufacturing facility concentration risk in Sirohi, Rajasthan(p.34)
- • COVID-19 pandemic poses ongoing operational and demand risks(p.27)
- • Regulatory compliance risks in biofuel industry(p.23)
- • Environmental regulation changes could increase compliance costs(p.34)
- • Transportation disruptions and cost increases(p.33)
- • Raw material price volatility and availability risks(p.25)
- • Dependence on single lender for working capital and facility financing(p.33)
- • General economic slowdown and recession risks(p.41)
- • Government policy changes on biofuels(p.90)
- • Adverse impact from duty changes(p.90)
- • Domestic competition in biofuel sector(p.97)
- • Dependence on government procurement(p.94)
- • Volatile crude oil prices affecting feedstock costs(p.85)
- • Industry susceptibility to government policy changes(p.166)
- • Adverse impact from changes in duty structures(p.166)
- • Crude oil price volatility affecting product pricing and margins(p.158)
- • Renewable fuel standard and energy policy uncertainties(p.166)
- • Fluctuating raw material costs, particularly crude oil(p.176)
- • Inflation risk and inability to pass cost increases to customers(p.176)
- • Customer payment default and credit risk(p.176)
- • Liquidity risk from working capital constraints(p.176)
- • Ongoing COVID-19 pandemic impacts on business operations(p.171)
- • Increasing competition from domestic players in biofuels sector(p.170)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Gaurang Rameshchandra Shah | Promoter | 69.11% | 50.67% |
| Mrs. Bhaviniben Gaurang Shah | Promoter Group | 14.31% | 10.49% |
| Mr. Brijkumar Gaurang Shah | Promoter Group | 1.61% | 1.18% |
| Mr. Vandan Gaurang Shah | Promoter Group | 1.11% | 0.82% |
| M/s Gaurang R. Shah HUF | Promoter Group | 12.36% | 9.06% |
| Mr. Gaurang Rameshchandra Shah | Promoter and Managing Director | 69.11% | 50.67% |
| Mrs. Bhaviniben Gaurang Shah | Promoter Group | 14.31% | 10.49% |
| Mr. Brijkumar Gaurang Shah | Promoter Group | 1.61% | 1.18% |
| Mr. Vandan Gaurang Shah | Promoter Group | 1.11% | 0.82% |
| M/s Gaurang R. Shah HUF | Promoter Group | 12.37% | 9.06% |
| Mr. Gaurang Rameshchandra Shah | Promoter / Chairman cum Managing Director | 69.11% | — |
| Gaurang Rameshchandra Shah | Promoter/Managing Director | — | — |
| Bhaviniben Gaurang Shah | Promoter Group | — | — |
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.