Shri Kanha Stainless Files DRHP for IPO
By Ankur Chandra | Published at: Jul 11, 2025 12:22 PM IST
Mumbai, 11 July 2025: Shri Kanha Stainless Limited has filed its Draft Prospectus with NSE Emerge to launch a 100% fixed-price initial public offering (IPO) comprising up to 51.50 lakh equity shares of face value ₹10 each. The IPO will be a fresh issue, with no offer for sale component, and aims to support the company’s expansion strategy and financial restructuring.
IPO to Fully Funded Growth Without Offer for Sale or Dilution to Existing Promoters
The IPO consists solely of a fresh issue of 51,50,000 equity shares, with no offer for sale (OFS) involved. The issue will be carried out under Regulation 229(2) of SEBI (ICDR) Regulations, 2018, as the company’s post-issue paid-up capital is projected to exceed ₹10 crore but remain under ₹25 crore. Shri Kanha Stainless plans to list the equity shares on NSE Emerge, the SME platform of the National Stock Exchange. Kreo Capital Private Limited is appointed as the lead manager, while MAS Services Limited will serve as the registrar to the issue.
IPO Proceeds Target Key Technology Upgrades, Debt Reduction, and Working Capital
The net proceeds from the IPO will be utilised for four core objectives:
- Installation of a 1150 mm 4-Hi AGC Reversible Rolling Machine, imported from China – ₹1,200.29 lakh
- Repayment and/or prepayment of secured and unsecured borrowings – ₹1,800.00 lakh
- Working capital requirements – ₹548.46 lakh
- General corporate purposes – [To be updated]
The company has already made an advance payment of ₹198.35 lakh towards the machinery, which will boost production capacity by 2.5 times and position Shri Kanha Stainless among a niche set of Indian manufacturers equipped with such advanced capabilities.
Strong Revenue Growth and Margin Expansion Over Three Years
Shri Kanha Stainless has demonstrated consistent financial growth with rising profitability:
| Revenue from Operations | 13,503.95 | 13,037.44 | 14,579.11 |
| EBITDA | 436.32 | 824.29 | 1,338.01 |
| EBITDA Margin (%) | 3.23% | 6.32% | 9.17% |
| PAT | 72.02 | 260.27 | 579.03 |
| PAT Margin (%) | 0.53% | 2.00% | 3.98% |
| ROE | 19.11% | 40.85% | 47.61% |
| ROCE | 7.12% | 12.50% | 18.74% |
This financial trajectory underlines the company’s improving operational efficiency and ability to scale profitably.
Promoter Group Retains Full Ownership Pre-Issue, Shareholding to Adjust Post-Listing
As of the draft filing, the promoter group holds nearly the entire pre-issue equity, with minor holdings outside the core group:
| Name | Shares Held | % of Pre-Issue Capital |
|---|---|---|
| Jai Bhagwan Agarwal | 41,98,800 | 40.22% |
| Shashank Agrawal | 23,98,800 | 22.98% |
| Kavita Agarwal | 26,38,800 | 25.28% |
| Neha Agarwal | 12,00,000 | 11.49% |
| Total Promoters | 1,04,36,400 | 99.97% |
| Others (Promoter Group) | 3,600 | 0.03% |
Post-issue shareholding details will be updated once the final offer size and pricing are determined.
Expansion to Enable Entry Into High-Margin Blade Steel Market
Founded in 2015 and based in Jaipur, Shri Kanha Stainless Limited manufactures precision cold-rolled stainless steel strips in grades 200, 300, and 400, with thicknesses ranging from 0.08 mm to 2.00 mm. Its products cater to multiple sectors, including textiles, automotive, electronics, and consumer durables. The company operates through a dealer network of over 70 partners.
With the planned equipment installation, Shri Kanha Stainless aims to expand into the premium shaving blade steel segment, a space currently dominated by major players such as Jindal Stainless.
Listing to Unlock Value and Support Long-Term Strategic Positioning
The company’s IPO and listing on NSE Emerge are expected to provide capital for growth, improve its balance sheet, and strengthen its competitive edge. The price band, offer dates, market maker allocation, and other offer specifics will be disclosed in the final Prospectus to be filed with the Registrar of Companies (RoC).
Note: The IPO price band, issue opening/closing dates, and market maker details are yet to be finalized and will be updated in the final Prospectus filed with RoC.
REF: https://nsearchives.nseindia.com/emerge/corporates/content/Registration_11072025082133_DraftProspectusSKSL.pdf
Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations
