Kanishk Aluminium Files IPO Draft for 40 Lakh Equity Shares; BSE SME Listing Planned

Jodhpur, July 30, 2025 — Kanishk Aluminium India Ltd has filed its Draft Prospectus with BSE SME for a 100% fixed price initial public offering (IPO) of 40,00,000 equity shares of face value ₹10 each. The issue is a pure fresh issue, with no offer-for-sale (OFS) component, and aims to raise funds for debt reduction, brand promotion, and general corporate purposes.

IPO Structure

• The IPO comprises 40,00,000 equity shares, all part of a fresh issue.
• Each equity share carries a face value of ₹10.
• The offering is a 100% fixed price issue, with no offer-for-sale (OFS) component.
• The company plans to list its shares on the BSE SME platform.
• Sun Capital Advisory Services Pvt. Ltd. is the lead manager to the issue.
• KFin Technologies Ltd will serve as the registrar to the IPO.
• The company has received in-principle approval from BSE SME for the listing.
• The issue opening and closing dates are yet to be announced.

Use of Net Proceeds

As per the filing, the proceeds from the IPO will be utilized as follows:

• The company plans to utilize ₹1,950 lakh from the IPO proceeds for repayment or prepayment of existing borrowings.
• An additional ₹79.75 lakh will be allocated towards branding and promotional activities for its flagship product line, ‘Baari by Kanishk’, to enhance market presence.
• A portion of the proceeds, not exceeding 15% of the gross amount raised, will be earmarked for general corporate purposes.
• The total estimated net proceeds from the IPO are yet to be finalized.

Key Allocation: Debt Repayment

The company will use ₹1,950 lakh to reduce working capital borrowings from Union Bank of India. This includes a cash credit limit of ₹1,800 lakh and a term loan of ₹460 lakh, both carrying an interest rate of 8.20% p.a..

Branding Strategy: ‘Baari by Kanishk’

Another ₹79.75 lakh is earmarked for promotional campaigns of ‘Baari by Kanishk’, a new line of aluminium doors and windows targeting premium home and office interiors. The budget will fund advertisements across news channels (Zee, News18), airline magazines (Hello 6E, Namaste.ai), and social media platforms.

Financial Highlights

• Revenue from operations stood at ₹5,930.46 lakh in FY24, and reached ₹4,140.31 lakh in just 10 months of FY25
• EBITDA rose from ₹449.81 lakh in FY24 to ₹490.68 lakh in 10MFY25.
• The EBITDA margin jumped significantly from 7.58% in FY24 to 11.85% in 10MFY25.
• Profit After Tax (PAT) increased from ₹152.29 lakh in FY24 to ₹205.98 lakh in 10MFY25.
• Net worth rose from ₹1,353.07 lakh in FY24 to ₹1,559.05 lakh in 10MFY25.
• Total borrowings reduced from ₹2,084.45 lakh in FY24 to ₹1,906.13 lakh in 10MFY25.

Promoter Shareholding

• Promoters of Kanishk Aluminium include Parmanand Agarwal, Khushboo Agarwal, and Ashish Agarwal.
• Parmanand Agarwal currently holds a majority stake of 83.05% in the company prior to the IPO.
• Khushboo Agarwal owns 16.94% of the pre-issue equity.
• Ashish Agarwal holds a negligible stake before the IPO.
• Post-issue shareholding figures for all promoters will be updated once the IPO allotment is finalized.

All 94,40,000 pre-issue shares are held by the promoter group, and are subject to lock-in as per SEBI ICDR Regulations. At least 20% of post-issue capital will be locked in for 3 years.

About Kanishk Aluminium India

Kanishk Aluminium India Ltd, incorporated in 2018 and headquartered in Jodhpur, is engaged in manufacturing aluminium extrusion products used in automotive, architectural, furniture, solar, and industrial sectors. The company launched its B2C vertical ‘Baari by Kanishk’ in 2024 to cater to high-end aluminium windows and doors. It operates a factory in Rajasthan and serves customers across India.

REF: https://www.bsesme.com/download/399895/SME_IPO InPrinciple/KanishkAluminiumIndiaDraftProspectus_20250730112209.pdf

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