Krishna Defence SME
SME₹11.89 Cr issue
+92.31%
Listing gain over issue price
Issue size
₹11.89 Cr
1 lot at cut-off
₹1,17,000
Lot size
3,000shares
Open
25 Mar 2022
Close
29 Mar 2022
Allotment
01 Apr 2022
Listing
06 Apr 2022
Listing performance
Issue price
₹39
Listed at
₹75
Listing-day close
₹78.75
Latest price
₹1,121.80
Close on 23 Oct 2026
Listing gain
+92.31%
Return since issue
+2776.41%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 25 Mar 2022 – 29 Mar 2022
- Listing date
- 06 Apr 2022
- Face value
- ₹10 per share
- Issue price
- ₹39 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹11.89 Cr
- Market cap at offer price
- ₹44.65 Cr
- Promoter holding
- 100.00% → 73.38% pre-issue → post-issue
- ISIN
- INE0J5601015
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- 344, Floor-3, Plot-267, A To Z Industrial Estate, Ganapatrao Kadam Marg, Lower Parel, Delisle Road, Maharashtra
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 | 8,64,000 | — | — |
| Market maker | 1,56,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹39
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,17,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,34,000 |
| S-HNI (max) | 8 | 24,000 | ₹9,36,000 |
| B-HNI (min) | 9 | 27,000 | ₹10,53,000 |
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.
Shares allocated
8,64,000
Anchor portion
₹3.37 Cr
at ₹39 per share
Valuation and performance
Valuation at offer price
₹39 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.31 | — |
| P/E (×) | 16.88 | — |
| Market cap | — | ₹44.65 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 10.74%
- ROCE
- 10.87%
- Debt / equity
- 0.82
- PAT margin
- 5.53%
- NAV per share
- ₹21.46
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Krishna Defence SME
Krishna Defence and Allied Industries Limited (formerly Krishna Allied Industries Limited) was originally formed as a partnership firm M/s. Krishna Industries in 1997 and subsequently converted to a private limited company in 2013, then to a public company in 2021. The company operates across three business segments: manufacturing defence application products under licensing agreements with DRDO for the Indian Armed Forces; producing dairy equipment such as stainless steel milk cans, bulk milk coolers, and milking machines; and kitchen equipment. The company has two manufacturing facilities located near Vadodara, Gujarat and derives revenue through fixed-price contracts with government entities and dairy cooperatives.
Company Analysis
from RHPKrishna Defence and Allied Industries Limited manufactures defence application products for Indian Armed Forces, dairy equipment, and kitchen equipment across defence, dairy, and consumer segments.
Krishna Defence and Allied Industries Limited (formerly Krishna Allied Industries Limited) was originally formed as a partnership firm M/s. Krishna Industries in 1997 and subsequently converted to a private limited company in 2013, then to a public company in 2021. The company operates across three business segments: manufacturing defence application products under licensing agreements with DRDO for the Indian Armed Forces; producing dairy equipment such as stainless steel milk cans, bulk milk coolers, and milking machines; and kitchen equipment. The company has two manufacturing facilities located near Vadodara, Gujarat and derives revenue through fixed-price contracts with government entities and dairy cooperatives.
Defence and aerospaceDairy equipment manufacturingKitchen equipment manufacturing
Objects of the Issue
- Working Capital Requirement ₹900.00 lakhs p.21
- General Corporate Purpose ₹171.19 lakhs p.21
- Issue Expenses ₹117.53 lakhs p.21
- To meet Working Capital requirements ₹900.00 Lakhs p.87
- General Corporate Purpose ₹171.19 Lakhs p.87
- To meet issue expenses ₹117.53 Lakhs p.87
- Not specified in this document part - document does not contain Objects of the Offer section
Issue Structure
- Total Issue
- ₹1,188.72 lakhs
- Fresh Issue
- ₹1,188.72 lakhs (30,48,000 equity shares of face value ₹10/- each at issue price of ₹39/- per share)
- Offer for Sale
- Nil (entire issue constitutes fresh issue of equity shares)
- Price Band
- Floor Price: ₹37/- per equity share; Cap Price: ₹39/- per equity share
- Lot Size
- 3,000 equity shares (minimum bid lot)
- Face Value
- ₹10/- per equity share
Business Model
The company earns revenue primarily through manufacturing and supplying defence application products to Indian Armed Forces under Transfer of Technology (TOT) licensing agreements with DRDO; manufacturing and selling dairy equipment products to cooperative milk unions and dairy organizations; and producing kitchen equipment. For the stub period ended September 30, 2021, defence sector business constituted 60.74% of total revenue (₹1,258.32 lakhs), while dairy and kitchen equipment accounted for 39.26% (₹813.23 lakhs). Most contracts are fixed-price contracts awarded through competitive bidding.
Business Segments
Manufacturing and supply of specialized defence application products for Indian Armed Forces including bulb bars, food containers, improved space heating devices, IED containment vessels, man mounted cooling systems, solar snow melters, and mounting and support equipment for camouflage nets under licensing agreements with DRDO
Manufacturing a wide range of dairy equipment including stainless steel milk cans, milk cooling tanks or bulk milk coolers, milking machines, cow brooming brushes, and robotic milk collection units
Manufacturing kitchen equipment products
Manufactures specialized defence application products for Indian Armed Forces including shipbuilding steel bulb bars, ballast bricks, super alloy weld consumables (welding wire, flux, electrodes), food containers, and space heating devices (bukhari). Products are manufactured under DRDO licensing agreements and Transfer of Technology agreements.
Manufactures stainless steel milk cans, Bulk Milk Coolers (Milk Cooling Tanks), Milking Machines, Cow Brooming Brush, and the proprietary Robotic Milk Collection Unit (RMCU) which analyzes milk for fat, SNF, and adulteration. Serves dairy cooperatives and milk societies across India.
Manufactures bulk cooking equipment including Rice Cauldron, Dal Cauldron, Braising Pan, Distribution Vessels, Rice Chute, Dal Storage Tank used for large-scale meal programs cooking up to 100,000 meals per day.
New business vertical (since 2020) manufacturing and marketing Modular Vehicle Barrier, Automatic Tyre Killer, Multi-purpose Launcher, and Long Range LED Searchlight for Indian Armed Forces under MAKE IN INDIA program, with critical components imported from foreign vendors.
Manufactures defence application products including bulb bars for naval shipbuilding, food containers for extreme cold conditions, improved space heating devices (Bukhari), welding consumables (wire, flux, electrodes), and special steel alloy bricks used as ballast weights for critical naval applications. Products under development include Improvised Explosive Device (IED) Containment Vessels, Man Mounted Cooling Systems, Solar Snow Melters, and Mounting & Support Equipment for Multi Spectral Camouflage Nets.
Manufactures dairy equipment including Robotic Milk Collection Units (RMCU) in 25 Ltr and 40 Ltr variants, Stainless Steel Milk Cans, Bulk Milk Coolers (BMC) in Dx Type and Solar cum grid Powered variants, Milking Machines (Mobile/Trolley and Fixed types) with spare parts, and Cow Grooming Brushes. Products are supplied to dairy farmers, milk societies, and dairies.
Manufactures kitchen equipment including Rice Cauldrons (capacity 150-700L), Dal Cauldrons (capacity 300-3000L), Braising Pans (capacity 150-500L), Distribution Vessels (10L, 20L, 30L), Rice Chutes (capacity 500-700kg), and Dal Storage Tanks (capacity 500-2500L). Products are made from AISI 304 Food Grade Stainless Steel and are supplied for institutional use.
Manufacturing of defence application products including ship building steel bulb bars, special steel alloy ballast weights, super alloys weld consumables (welding wire, flux, electrodes), food containers, and heating devices for naval and border defence applications
Manufacturing of dairy and kitchen equipment products including stainless steel milk cans, milk cooling tanks, milking machines, cow brooming brushes, robotic milk collection units and galley equipments
SWOT Analysis
Strengths
- • Diversified product portfolio across defence, dairy, and kitchen equipment sectors(p.21)
- • Licensed manufacturing agreements with DRDO for specialized defence products(p.21)
- • Patented technology for dairy equipment - Robotic Milk Collection Unit(p.31)
- • Established track record in defence sector with 60%+ revenue contribution(p.29)
- • Diversified product portfolio across Defence, Dairy, and Kitchen Equipment sectors(p.121)
- • Comprehensive in-house precision manufacturing capabilities with stringent quality control(p.121)
- • High barriers to entry due to stringent defence sector qualification requirements(p.121)
- • Strong R&D capabilities enabling product innovation(p.121)
- • Established long-standing relationships with government and institutional customers(p.121)
- • Experienced management team with deep industry knowledge(p.122)
- • Patent protection for innovative product technology(p.151)
- • Established partnerships with DRDO for specialized defence manufacturing(p.238)
- • Long operational history in dairy equipment manufacturing since 1997(p.238)
- • Registered vendor with Defence Research and Development Laboratory and manufacturer registration with DGQAssurance(p.252)
- • ISO 9001:2015 certification for quality management(p.255)
- • Patent for automated milk analysis and collection apparatus(p.256)
- • Approval from American Bureau of Shipping for marine applications(p.254)
- • Positive net worth and profitable operations(p.267)
- • Track record of 3+ years of operations(p.267)
- • Clean regulatory history(p.267)
Weaknesses
- • Dependence on TOT agreements from DRDO which are typically 5-10 year contracts with renewal uncertainty(p.29)
- • Heavy reliance on government customers - 60%+ revenue from defence sector contracts(p.29)
- • Significant working capital requirements with high inventory and receivables levels(p.37)
- • High outstanding trade payables indicating cash flow constraints(p.33)
- • Manufacturing facilities on leased premises with renewal and relocation risks(p.35)
- • Significant contingent liabilities of Rs 1,503.30 Lakhs as of September 30, 2021(p.40)
- • Unregistered sub-lease arrangement for Halol facility from group company without proper GIDC consent(p.35)
- • Promoter concentration - 62.55% shareholding by single promoter(p.21)
- • Significant dependence on few major customers in Defence sector(p.121)
- • Concentration of manufacturing facilities in limited locations(p.133)
- • Low capacity utilization in certain product lines(p.129)
- • Limited insurance coverage leaving business exposed to uninsured risks(p.131)
- • Young company status with limited operating history(p.149)
- • Heavy dependence on government/defence sector customers(p.243)
- • No long-term agreements with customers(p.243)
- • Significant debt burden relative to equity(p.246)
- • Low profit margins and declining profitability(p.241)
- • Pending EPFO compliance investigation for non-payment of provident fund(p.250)
- • Potential liabilities from indirect tax disputes(p.251)
- • Loss-making group company reducing dividend potential(p.258)
- • Concentration of shareholding among promoters(p.187)
- • Small post-issue paid-up capital below Rs. 25 Crores(p.267)
Opportunities
- • India's defence sector growth with government focus on 'Atma Nirbhar Bharat' and 'Make in India'(p.21)
- • India's position as third highest military spender globally(p.21)
- • New business vertical in Homeland & Security products with MAKE IN INDIA focus(p.37)
- • Expansion of dairy equipment market with potential institutional buyer base(p.21)
- • International export potential for defence and dairy equipment(p.41)
- • Government import embargo on defence items creating indigenization opportunities(p.123)
- • Increased defence spending and capital allocation by Government(p.123)
- • Strategic government initiatives promoting domestic defence manufacturing(p.123)
- • Expansion of submarine and shipbuilding ecosystem creating component supply opportunities(p.123)
- • Government schemes boosting dairy industry growth and demand(p.123)
- • Transfer of Technology agreements enabling new defence product development(p.119)
- • International export potential leveraging existing capabilities(p.120)
- • Growth in Indian defence manufacturing and indigenization(p.238)
- • Expansion potential in dairy equipment market(p.238)
- • Export market for dairy and defence products(p.207)
- • Access to capital through public listing(p.262)
- • Possible government incentives for defence manufacturing(p.203)
- • Potential for migration to NSE main board(p.278)
- • Access to SME exchange with market making support(p.278)
Threats
- • Vulnerability to decline or reprioritization of Indian defence budget spending(p.47)
- • Increased FDI limits in defence sector (raised to 74% from 49%) increasing foreign competition(p.47)
- • Volatility in raw material costs, particularly steel prices affecting profit margins(p.32)
- • Intense competitive bidding environment with larger competitors having greater resources(p.41)
- • Regulatory changes including potential import liberalization affecting competitive position(p.41)
- • COVID-19 and other communicable disease outbreaks impacting operations and markets(p.47)
- • Dependence on third-party logistics and transportation with disruption risks(p.41)
- • Exposure to foreign exchange fluctuations in imports and exports(p.40)
- • Dependence on government tender processes with uncertain procurement timelines(p.121)
- • Exposure to competition from domestic and regional manufacturers(p.131)
- • Raw material cost volatility impacting profitability(p.131)
- • Regulatory compliance complexity across defence, dairy and food sectors(p.134)
- • Lease dependence for key manufacturing facilities(p.133)
- • Potential foreign exchange fluctuation risk from exports(p.120)
- • Significant impact from COVID-19 pandemic on revenue(p.242)
- • Volatility and reduction in defence sector spending(p.238)
- • Intense competition in defence and dairy equipment manufacturing(p.243)
- • Dependence on raw material availability and price fluctuations(p.241)
- • Regulatory and compliance risks(p.238)
- • Risk of promoter group competition(p.260)
- • Small customer base concentration(p.243)
- • Dependence on market maker support for liquidity(p.278)
- • Regulatory risks from government foreign investment restrictions(p.305)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Ankur Ashwin Shah | Promoter | 62.55% | 48.91% |
| Mr. Ankur Ashwin Shah | Promoter | 62.55% | 45.89% |
| Mrs. Pallavi Ashwin Shah | Promoter Group | 19.45% | 14.27% |
| M/s Krish Industries Private Limited | Promoter Group | 10.00% | 7.34% |
| M/s Krish Commodities (India) Private Limited | Promoter Group | 7.00% | 5.14% |
| Mrs. Preyal Ankur Shah | Promoter Group | 1.00% | 0.74% |
| Mr. Ankur Ashwin Shah | Promoter | 62.55% | — |
| Ankur Ashwin Shah | Promoter | 62.55% | — |
| Pallavi Ashwin Shah | Promoter Group | 19.45% | — |
| Krish Industries | Promoter Group | 10.00% | — |
| Krish Commodities | Promoter Group | 7.00% | — |
Leadership
Mr. Ankur Ashwin Shah · Managing Director & Promoter
Mr. Sandeep Ramrao Kadam · Whole Time Director
Mr. Suvendu Banerjee · Whole Time Director
Mrs. Preyal Ankur Shah · Chairperson & Non-Executive Director
Ms. Charmy Shah · Company Secretary & Compliance Officer
Mr. Piyush Harjibhai Patel · Chief Financial Officer
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.
Krishna Defence SME IPO FAQs
What is the lot size of Krishna Defence SME IPO?
The minimum lot size of Krishna Defence SME IPO is 3,000 shares. One lot costs ₹1,17,000 at the cut-off price.
When does Krishna Defence SME IPO open and close?
Krishna Defence SME IPO opened for subscription on 25 Mar 2022 and closed on 29 Mar 2022.
What is the listing date of Krishna Defence SME IPO?
Krishna Defence SME IPO listed on 06 Apr 2022.