Kanodia Cement Files for IPO with SEBI: Plans OFS of 1.49 Crore Shares

Kanodia Cement Limited, one of India’s fastest-growing cement makers, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The filing, dated May 23, 2025, reveals that the IPO will be entirely an Offer for Sale (OFS) of 1.49 crore equity shares. This means there will be no fresh issue of shares, and the company itself will not receive any funds from the IPO.

Selling Shareholders of Kanodia Cement IPO 

The IPO will help existing shareholders sell part of their stakes. The main sellers include the Nupoor Kanodia Beneficiary Trust, which will sell 81.91 lakh shares; Gautam Kanodia’s 44.77 lakh shares; Swati Kanodia’s 22.42 lakh shares; and Gautam Kanodia HUF, offloading 2,730 shares.

Since it is a pure OFS, all the money raised will go to these shareholders. The total value of the issue will be known once the price band is fixed. 

Why is Kanodia Cement IPO an Attractive Bet?  

A report by Crisil shows that Kanodia Cement’s grinding capacity has grown at a 22.12% compound annual growth rate (CAGR) from FY2014 to FY2024. This growth rate is much higher than the industry average of 7.31% and the peer average of 9.64%.

Lead Managers of Kanodia Cement IPO  

Anand Rathi Advisors, IIFL Capital Services, and Oneview Corporate Advisors are the lead managers for the IPO. The equity shares are planned to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) once approvals are in place.

You might like: Flipkart’s Fashion Boom Adds Sparkle to Its IPO Growth Pitch 

About Kanodia Cement

Kanodia Cement was founded in 2009. It produces blended cement types like Portland Pozzolana Cement (PPC) and Composite Cement (CC). The company sells to both businesses (B2B) and individual customers (B2C).

 It runs five Satellite Grinding Units (SGUs) in Uttar Pradesh and Bihar, with a total production capacity of 3.54 million tonnes per annum (MTPA).

Financial Performance  

For the nine months ending December 31, 2024, Kanodia Cement earned a net profit of ₹9.8 crore and a total income of ₹732 crore. These figures show the company’s strong and stable performance.

Conclusion 

With solid financial results and rapid growth in capacity, Kanodia Cement looks well-prepared for its market debut. The IPO will provide an exit for existing investors and mark a new chapter in the company’s journey.
 
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.