SME IPO: Kahan Packaging issue to open on September 6. 10 things to know about the offer
1) Company Overview
The company is engaged in the business of manufacturing and supplying polypropylene woven fabric-laminated, polypropylene woven sacks, PP woven bags, PP woven bags with liners, printed laminates for flexible packaging, woven polymer-based products of different weights, sizes, and colors as per customer’s specifications.
2) Industry Overview
In India, packaging is the fifth largest sector in its economy and is one of the highest-growth sectors in the country. According to the Packaging Industry Association of India (PIAI), the sector is growing at a CAGR of 22% in the last few years.
3) Issue size
The IPO is entirely a fresh equity issue of up to 7.2 lakh equity shares aggregating to Rs 5.76 crore.
4) Price Band
The company will offer its shares at a price band of Rs 80 apiece, and investors can bid for 1,600 shares in one lot.
5) Financial performance
For the period ending December 2022, the company has recorded revenues of Rs 13.52 crore and net profit of Rs 57 lakh.
6) Objects of the offer
The net proceeds from the public offer will be used to meet working capital requirements and other general corporate purposes.
7) Lead managers and Registrar
Hem Securities is acting as the lead manager to the issue, while Purva Sharegistry is the registrar.
8) Issue Structure
About 50% of the offer is reserved for retail investors, and the rest for other investors.
9) Important Dates
The IPO opens on September 6 and closes on September 8.
The final allotment will likely be made on September 13. The company's shares will likely be listed on September 18.
10) Listing of shares
The company's shares will be listed on the BSE SME platform.
