Kanodia Cement Limited Announces IPO Through Offer for Sale
Kanodia Cement Limited has announced its Draft Red Herring Prospectus (DRHP) for an upcoming Initial Public Offering (IPO). This IPO is entirely an Offer for Sale (OFS), presenting an opportunity for investors to participate in the growth story of a rapidly expanding cement manufacturer.
Company Overview
Kanodia Cement Limited (KCL) specializes in blended cements and operates through five satellite grinding units (SGUs) with a combined capacity of 3.54 MTPA as of September 2024. The company s business model focuses on efficient operations and a unique contract manufacturing approach, contributing to healthy profitability.
Key Achievements
KCL has demonstrated impressive growth, outperforming industry standards with a sales volume CAGR of 36.14% and a revenue CAGR of 34.83% from FY22 to FY24. The company reported an EBITDA margin of 17.21% in fiscal year 2024 and is net-debt free with treasury reserves as of March 31, 2024.
The company’s ROCE and ROE were recorded at 36.47% and 33.58% respectively in fiscal year 2024.
Financial Overview
Here s a snapshot of Kanodia Cement Limited s financials:
| Particulars | 31 Dec 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | 677.39 | 581.78 | 500.06 | 498.43 |
| Revenue | 731.79 | 900.12 | 669.09 | 493.05 |
| Profit After Tax | 98.19 | 113.87 | 55.55 | 40.41 |
| Net Worth | 494.16 | 395.98 | 282.11 | 226.88 |
| Reserves and Surplus | 419.59 | 321.41 | 207.54 | 151.59 |
| Total Borrowing | 32.00 | 14.94 | 77.27 | 116.05 |
Offer for Sale and IPO Structure
This IPO is an Offer for Sale of 14913930 shares. Here s the allocation for different investor types:
- Retail Investors: 35%
- Qualified Institutional Buyers (QIB): 50%
- Non-Institutional Investors (NII): 15%
The shares are proposed to be listed on both the BSE and NSE.
Lead Managers and Registrar
The lead managers for the Kanodia Cement Limited IPO are:
- Anand Rathi Advisors Limited
- IIFL Capital Services Limited
- Oneview Corporate Advisors Private Limited
The registrar for the IPO is Mufg Intime India Private Limited.
Conclusion
The Kanodia Cement Limited IPO presents an exciting opportunity for investors looking to invest in a growing cement manufacturer. Stay tuned for updates on the IPO dates and further details on this offering.