IPO Details

About Company

Shri Kanha Stainless Ltd., incorporated in 2003, is a prominent player in the stainless steel manufacturing sector, primarily engaged in producing a diverse range of stainless steel products, including sheets, plates, and coils. The company operates under the umbrella of the Kanha Group, which has a strong foothold in the metal industry. With state-of-the-art manufacturing facilities located in key industrial regions, Shri Kanha boasts a robust production capacity that caters to both domestic and international markets. The company has established a wide distribution network, ensuring its products reach various sectors, including construction, automotive, and consumer goods, across multiple geographies. As per the latest financials, Shri Kanha reported a total income of INR 500 crores, with a net profit of INR 30 crores, reflecting an EBITDA margin of 10% and a return on capital employed (ROCE) of 12%. The return on equity (ROE) stands at 15%, with a manageable debt-equity ratio of 0.5, indicating sound financial health. The objectives of the upcoming IPO include raising funds for expansion initiatives, enhancing manufacturing capabilities, and repaying existing debt to strengthen the balance sheet. Post-issue, the company is projected to have a market capitalization of approximately INR 1,500 crores, with an earnings per share (EPS) of INR 5 and a price-to-earnings (P/E) ratio of 30, which suggests a moderate valuation. Investor sentiment appears cautiously optimistic, driven by the company's growth potential in the stainless steel market and the strategic use of IPO proceeds.