Kataria Industries to Launch Rs 54.58 Crore IPO on July 16

Kataria Industries, based in Ratlam, has set the price range for its Rs 54.58-crore initial public offering (IPO) at Rs 91 to Rs 96 per share. The company announced this on Sunday. The IPO will be open for public subscription from July 16 to July 19, with anchor investors able to bid starting July 15.

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The IPO consists entirely of a fresh issue of 56.85 lakh shares. These shares will be listed on the NSE SME platform Emerge, with an expected listing date of July 24. The company stated that the IPO allocation includes 50% for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors.

Utilisation of Proceeds

The funds raised from the IPO will be used for capital expenditure on plant and machinery, debt repayment, and general corporate purposes. At the upper end of the price band, the company aims to raise up to Rs 54.58 crore. Investors can bid for a minimum of 1,200 shares and in multiples thereof.

Kataria Industries Ltd was incorporated in 2004 and operates two manufacturing plants in Ratlam, Madhya Pradesh. The company specialises in producing Low Relaxation Pre-stressed Concrete (LRPC) Strands and Steel Wires, as well as Post-tensioning (PT) Anchorage Systems including Anchor Cones, Anchor Heads, and Wedges.

Financial Performance

For the financial year 2023-24, Kataria Industries reported revenue of Rs 339.13 crore and an EBITDA of Rs 22.93 crore. Interactive Financial Services Ltd is acting as the sole-book running lead manager for the issue, while Bigshare Services is serving as the registrar.

The company’s shares will be available for public subscription during July 16-19, with anchor investor bidding starting on July 15. The IPO is entirely a fresh issue of shares, with no offer-for-sale component involved.

Kataria Industries plans to use the net proceeds from the IPO for various purposes including capital expenditure on plant and machinery, debt repayment, and general corporate needs. Investors can bid for a minimum of 1,200 shares and in multiples thereof.

The IPO includes a fresh issue of 56.85 lakh shares and will be listed on the NSE SME platform Emerge with an anticipated listing date of July 24. The allocation includes half of the net issue reserved for QIBs, while retail investors get 35%, and non-institutional investors receive the remaining 15%.

Founded in 2004, Kataria Industries Ltd operates two manufacturing facilities in Ratlam, Madhya Pradesh. The company focuses on manufacturing Low Relaxation Pre-stressed Concrete (LRPC) Strands and Steel Wires, along with Post-tensioning (PT) Anchorage Systems such as Anchor Cones, Anchor Heads, and Wedges.

The company's revenue stood at Rs 339.13 crore with an EBITDA of Rs 22.93 crore for the financial year 2023-24. Interactive Financial Services Ltd is managing the book-running lead role while Bigshare Services is handling registrar duties.

Kataria Industries has fixed its IPO price band between Rs 91 to Rs 96 per share to raise up to Rs 54.58 crore at the higher end. The IPO will be open for public subscription from July 16 to July 19, with anchor investor bidding starting on July 15.

The IPO comprises a fresh issue of shares without any offer-for-sale component. The shares will be listed on NSE's SME platform Emerge by July 24 if all goes as planned.