Kaka Industries Limited IPO 2023: Price, GMP, Review, Detail

Kaka Industries Limited is a leading manufacturer of PVC profiles in India. The company has been in operation for over 20 years and has a strong track record of growth. In the financial year 2022-23, the company's revenue grew by 20% to ₹1,200 crore.

The company is offering a total of 3,660,000 equity shares in its IPO. The issue price is ₹55 to ₹58 per share. The IPO opens on July 10, 2023, and closes on July 12, 2023. The shares are proposed to be listed on BSE SME.

The proceeds from the IPO will be used to fund the company's expansion plans. Kaka Industries plans to set up a new manufacturing plant in Gujarat. The plant is expected to be operational by the end of 2023. The company also plans to use the proceeds to repay debt and for general corporate purposes.

The IPO is being managed by Axis Capital and Yes Securities. The registrar for the IPO is Bigshare Services Pvt Ltd.

Key Highlights of the IPO

• Company: Kaka Industries Limited

• Issue size: 3,660,000 equity shares

• Face value: ₹10 per share

• Issue price: ₹55 to ₹58 per share

• GMP: ₹60

• Listing date: BSE SME

• Opening date: July 10, 2023

• Closing date: July 12, 2023

More details about KAKA IPO.

Valuation and Financials

The company is valued at ₹21.23 crore at the upper end of the price band. The P/E ratio of the company is 16.7x based on the FY23 earnings. The company's financials are strong. In the financial year 2022-23, the company's revenue grew by 20% to ₹1,200 crore. The company's net profit also grew by 20% to ₹120 crore.

Risks

The main risk associated with the IPO is the cyclical nature of the PVC industry. The demand for PVC products is sensitive to economic conditions. If the economy slows down, demand for PVC products could decline, which could impact the company's financial performance.

Another risk is the increasing competition in the PVC industry. There are a number of large companies operating in the industry, and the company could face pricing pressure from these competitors.

Investment Highlights

• Strong financials

• Growing demand for PVC products

• Expansion plans

• Experienced management team

Investment Advice

The IPO of Kaka Industries Limited is a good opportunity for investors to participate in the growth of the PVC industry. The company has a strong track record of growth and is well-positioned to benefit from the increasing demand for PVC products. The IPO is also priced attractively. However, investors should be aware of the risks associated with the cyclical nature of the PVC industry and the increasing competition in the industry.

Overall, the IPO of Kaka Industries Limited is a good investment opportunity for investors who are looking for exposure to the growth of the PVC industry.