Labelkraft Technologies
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 13 Mar 2023 – 15 Mar 2023
- Listing date
- 23 Mar 2023
- Face value
- ₹10 per share
- Issue price
- ₹55 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹4.75 Cr
- Market cap at offer price
- ₹17.84 Cr
- Promoter holding
- 99.71% → 73.16% pre-issue → post-issue
- ISIN
- INE0NLJ01011
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- 14/12, Jayachamarajendra Road, Karnataka
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 | 44,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹55
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,10,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,20,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,90,000 |
| B-HNI (min) | 10 | 20,000 | ₹11,00,000 |
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 (₹) | 0.24 | — |
| P/E (×) | 229.17 | — |
| Market cap | — | ₹17.84 Cr |
Key performance indicators
- Return on net worth
- 45.02%
- ROCE
- 7.00%
- Debt / equity
- 7.37
- EBITDA margin
- 11.85%
- NAV per share
- ₹18.18
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Labelkraft Technologies
Labelkraft Technologies Limited, incorporated on October 10, 2022, acquired the running business of M/s Solanki Enterprises (a proprietorship concern of its promoter) on November 11, 2022. The company provides complete barcode code solutions to multiple industry segments, supplying barcode printers, software, scanners, and mobile computers. It manufactures consumables for barcode printers including barcode ribbons, self-adhesive barcode labels, and product labels in roll and sheet forms using state-of-the-art machinery. The company also engages in trading of duty credit scrips required by importers to pay customs duty. For the period October 10, 2022 to November 30, 2022, the company recorded revenue from operations of ₹67.94 lakhs and profit after tax of ₹4.09 lakhs. The proprietorship concern's historical revenues from the trading of duty credit scrips comprised 87.07% (FY2021), 81.17% (FY2022), and 88.92% (as of November 30, 2022) of total revenues from operations.
Company Analysis
from RHPLabelkraft Technologies Limited manufactures and sells barcode solutions including printers, labels, ribbons, and scanners, and trades duty credit scrips for customs duty payments across retail, FMCG, logistics, and other industries.
Labelkraft Technologies Limited, incorporated on October 10, 2022, acquired the running business of M/s Solanki Enterprises (a proprietorship concern of its promoter) on November 11, 2022. The company provides complete barcode code solutions to multiple industry segments, supplying barcode printers, software, scanners, and mobile computers. It manufactures consumables for barcode printers including barcode ribbons, self-adhesive barcode labels, and product labels in roll and sheet forms using state-of-the-art machinery. The company also engages in trading of duty credit scrips required by importers to pay customs duty. For the period October 10, 2022 to November 30, 2022, the company recorded revenue from operations of ₹67.94 lakhs and profit after tax of ₹4.09 lakhs. The proprietorship concern's historical revenues from the trading of duty credit scrips comprised 87.07% (FY2021), 81.17% (FY2022), and 88.92% (as of November 30, 2022) of total revenues from operations.
Objects of the Issue
- Capital Expenditure towards installation of additional plant and machinery ₹180.69 lakhs p.16
- Funding working capital requirements ₹150.00 lakhs p.16
- General Corporate Purpose ₹76.25 lakhs p.16
- Issue Expenses ₹68.26 lakhs p.16
- Funding Capital Expenditure towards installation of additional plant and machinery ₹180.69 Lakhs p.66
- Funding of Working capital requirements ₹150.00 Lakhs p.66
- General Corporate Purpose ₹76.25 Lakhs p.66
- Issue expenses ₹68.26 Lakhs p.66
- The specific uses of proceeds from this issue are not detailed in this section of the document (pages 115-174 cover management, compliance, and legal information)
Issue Structure
- Total Issue
- ₹475.20 lakhs
- Fresh Issue
- ₹475.20 lakhs (8,64,000 equity shares of face value ₹10 each at issue price ₹55 per share)
- Offer for Sale
- Nil
- Price Band
- Fixed price of ₹55 per equity share
- Lot Size
- 2000 equity shares
- Face Value
- ₹10 per equity share
Business Model
The company earns revenue through two primary streams: (1) manufacturing and selling barcode-related products including printers, ribbons, self-adhesive labels, and related equipment; (2) trading of duty credit scrips required to pay customs duty, which it procures from exporters and sells to importers. The company supplies to various industry segments including FMCG, logistics service providers, chemicals, and garments.
Business Segments
SWOT Analysis
- • Recently acquired operational business with established revenue streams(p.2)
- • Established customer base with revenue generation(p.27)
- • Diversified product offerings across barcode solutions(p.16)
- • Significant duty credit scrip trading revenue contribution(p.26)
- • Experience of promoter and management team in barcode and labeling sector(p.91)
- • Comprehensive one-stop-shop offering for barcode solutions(p.91)
- • Established relationships with reputed customers(p.88)
- • Cost competitiveness and timely delivery capabilities(p.91)
- • Qualified service engineers for installation and after-sales support(p.88)
- • Registered trademark 'LABELKRAFT' with brand recognition(p.92)
- • Established corporate governance framework with independent directors and compliant board committees(p.116)
- • 25 years of combined business experience in barcode solutions and related products(p.124)
- • Diversified product and service portfolio across barcode and labeling solutions(p.150)
- • Reputable customer base including major corporations(p.150)
- • In-house manufacturing capabilities with modern equipment(p.150)
- • Very limited operating history as a public company(p.24)
- • Heavy dependence on promoter for business success(p.26)
- • Significant revenue concentration with top customers(p.27)
- • High inventory levels and obsolescence risk(p.25)
- • Significant unsecured debt that may be recalled(p.31)
- • High trade receivables and collection risk(p.25)
- • Geographically concentrated operations in single location(p.28)
- • Pending Factory Act registration(p.27)
- • Trademark not yet transferred to company name(p.29)
- • Negative cash flows from operations(p.32)
- • Heavily concentrated ownership with single promoter controlling 94% of shares(p.59)
- • Trademark ownership not yet rectified in company name(p.95)
- • Very recently incorporated company with limited operating history(p.107)
- • Small scale operations with limited employee base(p.95)
- • High debt-to-equity ratio reflecting significant leverage(p.146)
- • Significant related-party loan dependence from promoter(p.138)
- • Very small net worth relative to total liabilities(p.157)
- • Extremely limited operating history as newly incorporated company(p.132)
- • Concentrated ownership with promoter holding 94% pre-issue(p.123)
- • Growing retail sector creating barcode demand(p.16)
- • Expansion through new manufacturing facility(p.24)
- • Capital expenditure for additional machinery and capacity(p.16)
- • Working capital funding for business growth(p.16)
- • Expand domestic market presence and penetrate new geographies(p.92)
- • Increase revenues from existing customers through expanded service offerings(p.92)
- • Growing e-commerce and retail sector demand for barcode solutions(p.92)
- • Expanding warehousing and logistics sector with automation needs(p.87)
- • Government focus on barcode adoption among MSEs(p.84)
- • Expansion into new manufacturing facility to capitalize on future demand(p.150)
- • Growing demand across diversified customer base across multiple industries(p.150)
- • Integrated service offering enabling one-stop barcode solutions(p.150)
- • Acquisition of running business with established operations and customer relationships(p.169)
- • High competition from organized and unorganized players(p.31)
- • Supply chain disruption risk from suppliers(p.25)
- • Technology changes and consumer preference shifts(p.25)
- • Regulatory changes in duty credit scrip trading(p.26)
- • Macroeconomic slowdown and pandemic impact(p.35)
- • Power supply and cost fluctuations(p.27)
- • Economic downturns affecting customer spending(p.27)
- • Changes in tax laws and regulations(p.36)
- • Competitive and fragmented industry with numerous players(p.94)
- • Competitors with larger capital base and broader product offerings(p.94)
- • Global economic slowdown and tightening financial conditions(p.81)
- • Persistent global inflation and elevated commodity prices(p.80)
- • Dependence on economic growth and business activity for demand(p.67)
- • Dependence on commodity prices for duty credit scrips business(p.155)
- • Sensitivity to changes in government policies and taxation(p.151)
- • Rapid technological changes requiring continuous product portfolio upgrades(p.151)
- • Exposure to economic cycles and general economic downturns(p.151)
- • Pandemic and geopolitical risks impacting operations(p.152)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ranjeet Kumar Solanki | Promoter | 94.00% | 68.96% |
| Ranjeet Kumar Solanki | Promoter | 94.00% | 68.96% |
| Hemalatha | Promoter Group | 1.43% | 1.05% |
| Shraddha | Promoter Group | 1.43% | 1.05% |
| Raashi Jain | Promoter Group | 1.43% | 1.05% |
| Ayush Chopra | Promoter Group | 1.43% | 1.05% |
| Ranjeet Kumar Solanki | Promoter | 94.00% | — |
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.