Krischa Stapping Solutions is a Chennai-based startup that manufactures steel straps, seals, and allied packaging solutions. The company’s manufacturing facility in Chennai has a total annual capacity to produce 18,000 metric tons of steel strapping and 65 million steel seals. It uses state-of-the-art modern machines, supervised by expert metallurgists and engineers to manufacture heat-treated, high-tensile steel straps.
Krishca Strapping Solutions Limited IPO Details
Krishca Strapping Solutions IPO is a fresh issue offer of 33.2 lakh shares worth Rs. 17.93 lakh. The bidding window will open for retail investors on May 16, 2023. The price band for the book-building IPO is fixed at Rs. 51–54 per share.
Krishca Strapping Solutions Limited IPO Objective
The net proceeds from the fresh issues will be utilised in the areas below.
- To meet expenses for setting up a new strapping line
- Repayment of certain market borrowings in full
- To meet general corporate purposes and issue expenses
Should you invest in Krishca Strapping Solutions Limited?
Here are a few significant reasons to consider before investing in the IPO:
- It owns India’s first most advanced integrated, fully automated production line.
- In the steel strapping industry, Krishca Strapping Solutions owns approximately 7.6% of the market share.
- The company might see a rise in demand and market share as the steel strap market is projected to witness significant growth in the next 15 years. The current consumption rate of 9000–11000 tons per month is expected to see 5–10% growth each year.
Competitive Peers
The other players in the segment recognised by the company are Usha Martin and Metal Coating India Ltd.
Noteworthy Highlights of Krishca Strapping Solutions Limited
- The top 5 customers of the company contributed 51.90% of the revenue in FY22.
IPO Financials
| Particulars | Year ending on March 31, 2022 | Year ending on March 31, 2021 |
|---|---|---|
| Revenue from Operations | 1861.12 | 941.05 |
| Profit After Tax (PAT) | 150.54 | 67.25 |
| PAT Margin | 8.08% | NA |
| EBITDA | 171.71 | 67.25 |
| EBITDA Margin | 9.22% | NA |
| EPS | 3.01 | 2.33 |
Know before investing
Strengths
3The company provides its customers with the best quality, customised steel strapping and seal products.
It owns a state-of-the-art manufacturing facility in Chennai.
It owns India’s first lead-free, environment-friendly production line.
Risks
3The company has negative cash and cash equivalent in FY20.
It doesn’t enter into long-term relationships with its customers and works on an order basis.
Only knowledgeable customers should invest because the steel industry is highly cyclical and volatile.
