Tremendous Demand in Gray Market for Kaka Industries IPO as it Opens for Subscription
Kaka Industries IPO
Kaka Industries IPO: Kaka Industries, a company specializing in the manufacturing of PVC doors, PVC kitchen cabinets and furniture, UPVC windows profiles, and wood polymer composites, was established around four years ago in 2019.
The IPO of Kaka Industries: Kaka Industries is set to make its entry into the domestic market, and as part of this process, its IPO has opened for subscription today.
This IPO will only issue new shares to investors. In the gray market, which operates outside the official stock exchanges, there is tremendous demand for Kaka Industries’ shares.
Currently, the shares are trading at a Gray Market Premium (GMP) of Rs 50, representing an approximate 85% premium over the upper price of the IPO’s price band.
It’s worth noting that market experts advise investors to make investment decisions based on the fundamentals and financials of the company rather than relying solely on signals from the gray market.
The IPO of Kaka Industries aims to issue shares worth Rs 21.23 crore. Prior to the IPO opening, the company has already raised Rs 6.02 crore from anchor investors who received the shares at a price of Rs 58 per share.
Kaka Industries IPO Details:
Kaka Industries plans to issue 36.60 lakh equity shares with a face value of Rs 10 each as part of its IPO, amounting to a total value of Rs 21.23 crore.
The subscription period for this IPO will be open until July 12, allowing investors to place their bids within the price band of Rs 55-58 per share. The shares will be allocated in lots of 2000 shares.
Following the successful completion of the IPO, the final share allotment will take place on July 17. Subsequently, on July 20, the shares of Kaka Industries will be listed on the BSE SME platform, providing investors with the opportunity to trade the company’s shares.
The Registrar to the Issue for the Kaka Industries IPO is BigShare Services, which will handle the share allocation and other related processes.
The funds raised through this IPO will be utilized for various purposes. Firstly, Kaka Industries plans to use the proceeds to repay its loans.
Additionally, the funds will be allocated to meet the company’s working capital requirements, cover the expenses associated with the IPO, and support general corporate purposes.
Details About Kaka Industries
Kaka Industries, a company engaged in the manufacturing of PVC doors, PVC kitchen cabinets and furniture, UPVC windows profiles, and wood polymer composites, was established approximately four years ago in 2019.
The company operates three manufacturing plants located in Jak village, Gandhinagar district of Gujarat.
These plants have a combined production capacity of 15,425 metric tons (MT) for PVC profiles, 2,995 MT for wood polymer composite profiles and sheets, and 2,022 MT for UPVC door and window profiles. This infrastructure enables Kaka Industries to meet the demand for its products efficiently.
In terms of distribution, Kaka Industries has established depots in Gagilpur, Telangana, Dadri, Uttar Pradesh, and Surat, Gujarat. These depots play a crucial role in ensuring timely delivery of products to customers.
Financially, Kaka Industries has exhibited continuous strengthening. In the fiscal year 2020, the company recorded a net profit of Rs 1.41 crore.
This figure increased to Rs 3.02 crore in the subsequent financial year and further rose to Rs 4.98 crore in FY 2022.
Notably, in the most recent fiscal year, FY 2022-23, the company’s net profit witnessed a significant jump, reaching Rs 7.18 crore. These positive financial trends indicate the company’s growth and profitability.
Investors considering participation in the Kaka Industries IPO should carefully analyze the company’s manufacturing capabilities, distribution network, financial performance, and future growth prospects. Conducting thorough due diligence will enable investors to make informed investment decisions.
