Krishca Strapping Solutions
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 16 May 2023 – 19 May 2023
- Listing date
- 26 May 2023
- Face value
- ₹10 per share
- Issue price
- ₹54 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹17.93 Cr
- Market cap at offer price
- ₹65.18 Cr
- Promoter holding
- 86.34% → 62.60% pre-issue → post-issue
- ISIN
- INE0NR701018
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Share India Capital Services Pvt.Ltd.
- Registered office
- Building 01B, LOGOS Mappedu Logistics Park Sathara, Thiruvallur Taluk, Tamil Nadu
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 | 9,04,000 | — | — |
| Market maker | 3,00,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹54
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,08,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,16,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,72,000 |
| B-HNI (min) | 10 | 20,000 | ₹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.
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 (₹) | 15.71 | — |
| P/E (×) | 3.44 | — |
| Market cap | — | ₹65.18 Cr |
Key performance indicators
- Return on net worth
- 0.83%
- PAT margin
- 8.08%
- NAV per share
- ₹3.19
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Krishca Strapping Solutions
Krishca Strapping Solutions Limited was incorporated on December 12, 2017 as a private limited company ('Krishca Strapping Solutions Private Limited') in Tamil Nadu and was converted into a public limited company with effect from the fresh certificate of incorporation dated December 29, 2022. It was started in 2017 by founder, Chairman & Managing Director Mr. Lenin Krishnamoorthy Balamanikandan, who moved to India from the U.K. in August 2017 to set up a steel strapping plant; a production line designed by Korean and Chinese designers was ordered from Zhejiang New Vision IMP. And Exp.Co.Ltd in 2018, a lease deed for a 25,700 sq ft facility in LOGOS Mappedu Industrial & Logistics Park (Thiruvallur district, near Chennai) was executed in May 2019, installation was completed by March 2020, and the plant obtained a 700 KVA HT connection with an initial capacity of 1,500 tons per month. At its Chennai facility the company manufactures heat-treated high-tensile steel straps (grades KRISHCA PRIME, SUPER PRIME and ULTRA PRIME, with blue-tempered, painted and zinc/wax-coated finishes meeting IS 5872:1990, ASTM D-3953 and BS EN 13246 standards) plus steel seals, and wholesales strapping tools, sold mainly to large steel mills for applications such as coil packaging, TMT bundling and container/wagon lashing; exports to UAE/Dubai and Saudi Arabia commenced in FY 2021-22. It earns almost entirely from sale of manufactured goods (wholesale/trading is below 10%): revenue from operations rose from ₹96.09 lakh in FY20 to ₹1,861.12 lakh in FY22 and ₹6,341.34 lakh for the period up to February 15, 2023, against installed annual capacity of ~18,000 MT of steel strapping and 65 million steel seals; via the IPO it intends to fund a new strapping line to increase capacity from 18,000 tons per annum towards 30,000 tons per month.
Company Analysis
from RHPKrishca Strapping Solutions Limited manufactures and wholesales heat-treated high-tensile steel strapping, steel seals and strapping tools for industrial packaging, primarily serving the steel industry.
Krishca Strapping Solutions Limited was incorporated on December 12, 2017 as a private limited company ('Krishca Strapping Solutions Private Limited') in Tamil Nadu and was converted into a public limited company with effect from the fresh certificate of incorporation dated December 29, 2022. It was started in 2017 by founder, Chairman & Managing Director Mr. Lenin Krishnamoorthy Balamanikandan, who moved to India from the U.K. in August 2017 to set up a steel strapping plant; a production line designed by Korean and Chinese designers was ordered from Zhejiang New Vision IMP. And Exp.Co.Ltd in 2018, a lease deed for a 25,700 sq ft facility in LOGOS Mappedu Industrial & Logistics Park (Thiruvallur district, near Chennai) was executed in May 2019, installation was completed by March 2020, and the plant obtained a 700 KVA HT connection with an initial capacity of 1,500 tons per month. At its Chennai facility the company manufactures heat-treated high-tensile steel straps (grades KRISHCA PRIME, SUPER PRIME and ULTRA PRIME, with blue-tempered, painted and zinc/wax-coated finishes meeting IS 5872:1990, ASTM D-3953 and BS EN 13246 standards) plus steel seals, and wholesales strapping tools, sold mainly to large steel mills for applications such as coil packaging, TMT bundling and container/wagon lashing; exports to UAE/Dubai and Saudi Arabia commenced in FY 2021-22. It earns almost entirely from sale of manufactured goods (wholesale/trading is below 10%): revenue from operations rose from ₹96.09 lakh in FY20 to ₹1,861.12 lakh in FY22 and ₹6,341.34 lakh for the period up to February 15, 2023, against installed annual capacity of ~18,000 MT of steel strapping and 65 million steel seals; via the IPO it intends to fund a new strapping line to increase capacity from 18,000 tons per annum towards 30,000 tons per month.
Objects of the Issue
- Capital Expenditure for setting up of New Strapping Line ₹ 1203.54 Lakhs p.60
- Repayment of certain secured borrowings in full availed by our Company (Term Loan from CSL Capital Private Limited) ₹ 375.00 Lakhs p.61
- General Corporate Expenses (capped at 25% of Gross Proceeds of the Issue) p.60
- Issue Expenses ₹ 104.26 Lakhs p.62
Issue Structure
- Total Issue
- 33,20,000 Equity Shares aggregating to ₹ [●] Lakhs (constituting 27.50% of post-issue paid-up equity share capital)
- Fresh Issue
- 33,20,000 Equity Shares aggregating to ₹ [●] Lakhs (entirely fresh; includes Market Maker Reservation of 3,00,000 Equity Shares; Net Issue 30,20,000 Equity Shares constituting 25.02% of post-issue paid-up capital)
- Offer for Sale
- N.A. (no Offer for Sale; selling shareholders: NIL)
- Price Band
- ₹ 51.00 TO ₹ 54.00 PER EQUITY SHARE (Issue Price is 5.1 to 5.4 times the face value at the lower and upper bands respectively)
- Lot Size
- Minimum of 2000 Equity Shares and in multiples of 2000 Equity Shares thereafter
- Face Value
- ₹ 10.00 each
Business Model
Manufacturing and wholesale sale of steel strapping consumables: nearly all revenue comes from domestic sale of manufactured goods — steel strapping (₹6,061.49 lakh), steel seals (₹252.50 lakh) and strapping tools (₹27.35 lakh) for the period up to February 15, 2023 — supplied directly to customers (primarily large steel mills) on a purchase-order basis without advance payment or security deposit, supplemented by modest export sales (₹316.23 lakh up to February 15, 2023 to the United Arab Emirates and Saudi Arabia); trading/wholesale activity is less than 10% of revenue.
Business Segments
SWOT Analysis
- • State-of-the-art fully automated production facility with PLC-controlled lines and expert supervision(p.72)
- • ISO 9001:2015-certified integrated quality management system with batch-wise stock keeping, traceability and in-house testing lab(p.73)
- • Product specifications aligned with American, European and Indian quality standards (IS 5872:1990, ASTM D-3953, BS EN 13246:2001)(p.72)
- • Demonstrated track record of rapid growth and improving profitability cited as basis for issue price(p.60)
- • Experienced promoters and technically sound operation team(p.60)
- • Heavy dependence on a concentrated set of customers and suppliers(p.19)
- • ₹382.71 lakhs of unsecured loans from directors repayable on demand, exposing the company to sudden recall risk(p.22)
- • No long-term supply contracts with customers; entire business conducted on a purchase-order basis(p.17)
- • Company does not own its registered office or factory premises; dependent on lease arrangements(p.16)
- • Principal trademark “KRISHCA” not yet registered, leaving brand exposed to misuse(p.17)
- • History of negative operating cash flows in prior years (FY2020 and FY2021)(p.16)
- • Indian finished steel consumption projected to nearly double to 230 MT by 2030-31, driving strapping demand(p.65)
- • Growing global steel strapping market expanding at 3.33% CAGR to USD 1,533.15 million by 2028(p.65)
- • IPO-funded capacity expansion from 18,000 tons per annum to capture rising domestic and overseas demand(p.56)
- • New Ultra High Tensile grade enabling entry into new end-use segments such as wagon lashing and jute packing(p.56)
- • Indian steel strap consumption expected to grow 5-10% annually over the next 15 years(p.71)
- • Steel industry is highly cyclical with volatile input prices that can compress margins unpredictably(p.17)
- • COVID-19 pandemic and potential future waves causing operational disruption and order delays(p.17)
- • Adverse shifts in government policy, taxation or regulation affecting the steel/packaging industry(p.27)
- • Rising interest rates increasing the cost of servicing existing and future borrowings(p.23)
- • Global economic, political and social instability impacting trade flows, commodity prices and capital availability(p.27)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Lenin Krishnamoorthy Balamanikandan | Promoter; Chairman & Managing Director | 56.35% | 40.85% |
| Ms. Navaneethakrishnan Saraladevi | Promoter; Whole-Time Director cum CFO | 14.45% | 10.48% |
| Mr. Lenin Krishnamoorthy | Promoter Group (Father of Promoter) | 1.23% | 0.89% |
| Ms. Saravanakumar Ramya | Promoter Group (Spouse Sister of Promoter) | 13.30% | 9.65% |
| Ms. L.Anthoniammal | Promoter Group (Mother of Promoter) | 1.01% | 0.73% |
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.