Kanodia Cement Submits DRHP to SEBI for IPO
By Ankur Chandra | Updated at: May 31, 2025 10:45 PM IST
Mumbai, May 23, 2025: Kanodia Cement Limited has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), marking a significant step towards its proposed Initial Public Offering (IPO). The offer, comprising solely an Offer for Sale (OFS), involves the sale of up to 1,49,13,930 equity shares, each with a face value of ₹10. Upon completion, the company intends to list its shares on the mainboards of both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
IPO at a Glance
| Detail | Info |
|---|---|
| Issue Type | 100% Book Built Offer |
| Issue Size | Up to 1,49,13,930 equity shares (OFS) |
| Price Band | ₹[●] – ₹[●] |
| Face Value | ₹10 per share |
| Listing Exchanges | BSE, NSE (Mainboard) |
| BRLMs | Anand Rathi Advisors, IIFL Capital, Oneview Corporate Advisors |
| Registrar | MUFG Intime India Pvt Ltd |
| Promoters | Vishal Kanodia, Nupoor Kanodia Beneficiary Trust, Trish Kanodia Beneficiary Trust |
| Selling Shareholders | Nupoor Kanodia Beneficiary Trust, Gautam Kanodia, Swati Kanodia, Gautam Kanodia HUF |
Company Overview
Established in 2009, Kanodia Cement has carved a niche for itself in the Indian cement manufacturing sector, particularly through its satellite grinding units (SGUs) located in Uttar Pradesh and Bihar. The company focuses on producing blended cement variants such as Portland Pozzolana Cement (PPC) and Composite Cement (CC). It operates under two distinct business models:
- Contract Manufacturing: Producing cement for third-party brands.
- Business-to-Consumer (B2C): Marketing its own range of products under the brand names BigCem, HBM, and Concrete Gold.
As of December 31, 2024, Kanodia Cement had a cumulative installed grinding capacity of 3.54 million tonnes per annum (MTPA) spread across five SGUs.
Financial Performance (Restated Consolidated Figures)
| Particulars (₹ in million) | 9M FY25 | FY24 | FY23 | FY22 |
|---|---|---|---|---|
| Total Income | 7,317.92 | 9,001.16 | 6,690.91 | 4,930.52 |
| Net Profit (PAT) | 982.38 | 1,138.38 | 554.74 | 403.55 |
| EPS (Basic & Diluted) (₹) | 13.17 | 15.27 | 7.43 | 5.38 |
| Net Worth | 4,983.86 | 4,002.01 | 2,863.36 | 2,308.91 |
| Total Borrowings | 319.99 | 149.40 | 772.68 | 1,160.52 |
| NAV per Share (₹) | 66.27 | 53.10 | 37.83 | 30.33 |
The figures indicate a clear upward trajectory in earnings, paired with a disciplined effort to deleverage and strengthen the company’s financial foundation.
Promoter Sell-Off and IPO Objectives
This IPO consists entirely of an Offer for Sale, with no proceeds flowing directly to the company. The offering is structured to allow promoters and existing shareholders to monetise their holdings while enhancing the company’s visibility and brand recognition through public listing.
The share distribution by key selling shareholders is as follows:
- Nupoor Kanodia Beneficiary Trust: 81.91 lakh shares
- Gautam Kanodia: 44.77 lakh shares
- Swati Kanodia: 22.43 lakh shares
- Gautam Kanodia HUF: 2,730 shares
Lead Managers and Registrar
The IPO is being managed by three prominent Book Running Lead Managers (BRLMs):
- Anand Rathi Advisors Ltd
- IIFL Capital Services Ltd
- Oneview Corporate Advisors Pvt Ltd
MUFG Intime India Pvt Ltd (formerly Link Intime) has been appointed as the registrar to the offer.
Points to Consider
- Client Concentration: In the first nine months of FY25, over 84% of the company’s revenue came from its top four customers, indicating a high dependence on a limited client base.
- Geographic Focus: The company’s manufacturing operations are presently limited to Uttar Pradesh and Bihar, although new units in Pratapgarh and Bulandshahar are under development.
- Corporate Governance: Investors may note prior instances of interest waivers and regulatory delays.
- Financial Strength: On the positive side, the company has demonstrated strong financial performance, prudent debt reduction, and steady cash flows.
What’s Next?
The exact pricing, bidding dates, allotment schedule, and listing timelines will be detailed in the Red Herring Prospectus (RHP) following SEBI’s approval. Investors and analysts alike will be closely watching the next developments, as Kanodia Cement positions itself for its debut on India’s capital markets.
Disclaimer: This content is only for informational purpose. It does not make any recommendation to act or invest. Please read the offer documents carefully before investing. Investments are subject to market risks and other risks. There is no guarantee of the actual returns that will be given.
REF: https://www.bseindia.com/corporates/download/364900/IPO Prior/KCLDRHP_20250523064342.pdf
