Shri Kanha Stainless Ltd. IPO Analysis: A Deep Dive Before You Invest
Exploring the Fixed Price SME IPO Offering in the Stainless Steel Sector
The Initial Public Offering (IPO) market continues to be a vibrant space for investors looking for growth opportunities, especially within the Small and Medium Enterprises (SME) segment. The upcoming IPO of Shri Kanha Stainless Limited presents an interesting case study in the specialized manufacturing sector. Before diving into subscriptions, it's crucial to thoroughly examine the company's fundamentals, the offering's structure, and its future plans. This detailed analysis aims to equip you with the necessary insights to make an informed investment decision.
Understanding Shri Kanha Stainless Limited
Established in July 2015, Shri Kanha Stainless Limited has carved a niche for itself in the specialized manufacturing of precision stainless steel cold-rolled strips. The company focuses on thin and ultra-thin specifications, serving critical needs across various key industries.
Core Business Focus and Product Range
- Specializes in Cold Rolling of Stainless-Steel Precision Strips.
- Offers Stainless Steel Circles and Sheets alongside precision strips.
- Manufactures stainless steel coils across 200, 300, and 400 series.
- Capability to produce thicknesses as fine as 0.08 mm, with slitting starting from 5 mm.
- Products are utilized in demanding sectors like automotive, textiles, chemicals, and specialized equipment manufacturing (e.g., flexible tubes, clocks, watches).
- Possesses a current manufacturing capacity of 14,000 MTPA.
Quality Accreditation and Operational Strength
- Accredited with key certifications including ISO 9001: 2015.
- Holds ISI certification 15997:2012 for Low Nickel Austenitic Stainless-Steel Sheet for utensils.
- Manufacturing unit strategically located in Sikar, Rajasthan.
- As of November 25, 2025, the company reported an order book valued at Rs 1,273.49 Lakhs.
Key Investment Highlights: SWOT Assessment
To gauge the investment potential, a balanced view of the company's strengths, weaknesses, opportunities, and threats is essential.
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Financial Health Snapshot (Amounts in ₹ Crore)
Analyzing the historical financial performance provides context for the company’s recent trajectory.
| Metric | 31 Mar 2023 | 31 Mar 2024 | 31 Mar 2025 (Restated) | 30 Sep 2025 (Half Year) |
|---|---|---|---|---|
| Total Income | 136.47 | 131.00 | 146.39 | 110.30 |
| Profit After Tax (PAT) | 0.72 | 2.60 | 5.79 | 4.26 |
| Total Borrowing | 40.36 | 53.94 | 50.98 | 56.02 |
Key Observation: The company has demonstrated significant growth in profitability, with Profit After Tax (PAT) increasing substantially between FY 2024 and FY 2025, indicating improved operational efficiency or higher realized prices.
Valuation Metrics (As of Mar 31, 2025 Earnings)
| Parameter | Value |
|---|---|
| Return on Equity (ROE) | 47.61% |
| Debt to Equity Ratio | 4.19 |
| Price to Book Value (P/BV) | 7.73 |
| Post Issue P/E (x) | 16.47 |
Shri Kanha Stainless IPO Specifics
This is a Fixed Price Issue being listed on the NSE SME platform, indicating a focused offering to the SME segment.
Issue Structure and Pricing
| Detail | Value |
|---|---|
| Issue Type | Fixed Price IPO |
| Total Issue Size | ₹46.28 Crores (Fresh Issue) |
| Issue Price Per Share | ₹90.00 |
| Face Value | ₹10.00 per share |
Investor Categories and Lot Size
The offering is heavily skewed towards Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs), with no portion explicitly reserved for QIBs or Employees in the provided data structure.
| Investor Category | Shares Offered | Percentage |
|---|---|---|
| NII (HNI) | 24,41,600 | 47.48% |
| Retail Individual Investors (RII) | 24,41,600 | 47.48% |
| Market Maker Reserve | 2,59,200 | 5.04% |
Investment Quantities
| Investor Type | Lots | Shares | Minimum Investment (₹) |
|---|---|---|---|
| Retail (Minimum) | 2 | 3,200 | 2,88,000.00 |
| HNI (Minimum) | 3 | 4,800 | 4,32,000.00 |
IPO Timeline and Key Dates
The subscription window is short, highlighting the need for timely application submissions.
| Milestone | Tentative Date |
|---|---|
| IPO Open Date | Wednesday, December 3, 2025 |
| IPO Close Date | Friday, December 5, 2025 |
| Tentative Allotment Date | Monday, December 8, 2025 |
| Credit of Shares to Demat | Tuesday, December 9, 2025 |
| Tentative Listing Date (NSE SME) | Wednesday, December 10, 2025 |
Capital Structure and Promoter Background
The IPO aims to dilute the promoter stake significantly, raising funds for expansion and debt reduction.
Shareholding Changes
| Holding Stage | Percentage |
|---|---|
| Promoter Holding (Pre-Issue) | 100% |
| Promoter Holding (Post-Issue) | 67% |
Promoters & Key Management
- The company is promoted by Mr. Jai Bhagwan Agarwal, Mrs. Kavita Agarwal, Mr. Shashank Agrawal, and Ms. Neha Agarwal.
Purpose of the Public Issue
The utilization of the net proceeds is directed towards strategic capacity enhancement and financial deleveraging.
| Object of the Issue | Allocated Amount (₹ in crores) |
|---|---|
| Upgrading manufacturing facility (New Rolling Machine) | 12.00 |
| Repayment/Pre-payment of borrowings | 18.00 |
| Funding Working Capital Requirements | 5.48 |
| General Corporate Purposes | 5.00 |
Intermediaries for the Public Issue
The successful execution of the IPO relies on competent management by lead managers and registrars.
- Book Running Lead Manager: Kreo Capital Pvt.Ltd.
- Registrar: MAS Services Ltd. (Contact: ipo@masserv.com)
- Market Maker: Giriraj Stock Broking Pvt.Ltd. (This is important for providing liquidity post-listing on the SME exchange).
How to Participate: Application Guidance
For retail investors, applying online via ASBA (through net banking) or UPI (through broker platforms) is the standard procedure. Given that this is an NSE SME listing, broker platforms like Zerodha facilitate applications primarily through the UPI mandate system.
Applying via a Popular Discount Broker (Example: Zerodha)
- Log in to your broker's online platform (e.g., Zerodha Console).
- Navigate to the Portfolio or IPO section.
- Locate the Shri Kanha Stainless IPO and select the 'Bid' option.
- Input the required quantity (minimum 2 lots of 3,200 shares for retail), price (fixed at ₹90), and your UPI ID.
- Submit the application and ensure you approve the mandate request in your UPI application within the stipulated cut-off time (5 PM on Dec 5, 2025).
Contact Information for Further Reference
Prospective applicants should refer to the company’s official documents for comprehensive due diligence.
| Entity | Details |
|---|---|
| Company Address | Plot No. 70-B, Unit No. 401-402, 4th Floor, Trimurty Prime Tower, Jhotwara, Jaipur, Rajasthan, 302012 |
| Company Email | info@kanhastainless.com |
| Registrar Contact | (011) 2610 4142 |
Concluding Thoughts on Investment Potential
Shri Kanha Stainless Ltd. presents an opportunity in a specialized industrial segment, evidenced by strong recent profit growth and strategic use of IPO proceeds for capacity upgrades and debt reduction. The fixed price mechanism and SME listing suggest a focus on targeted growth. While the valuation metrics suggest a premium based on recent earnings and high debt, the strong ROE indicates efficient capital utilization. Investors should weigh the inherent SME risks—liquidity constraints and higher volatility—against the company's solid manufacturing credentials and growth objectives before participating in the December 2025 subscription window.