D.K. Enterprises Global Limited IPO

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i. The company is mainly engaged in the manufacturing of Paper-Based Packing Material, Self Adhesive Tapes (specialty tapes likes Masking, Siliconized, Medical and Surface protection Tapes), Laminated Products, and Flexible Packaging.

ii. They have been working almost exclusively with major multinational corporations in the consumer space. D.K. Enterprises, a proprietorship concern of Mrs. Rekha Bansal running its business for the last two decades which was taken over by the company at a total consideration of ` 200.00 Lakhs

iii. The company’s registered office and manufacturing facilities Unit I is located in Panchkula at Haryana and Unit II at Vadodra in Gujarat. They are proposing to commence manufacturing facilities at Baddi in Himachal Pradesh for manufacturing of Clear/Printed Bopp Tape, Masking/specialty tapes, and Laminated Products. They are also proposing to installed machinery at Vadodara (Unit II) for the manufacturing of Clear/Printed Bopp Tape, Masking/specialty tapes, and Laminated Products.

Competitive strengths
i. Experienced Promoters management team
ii. Long term relationship with MNC’s Customers
iii. Provide customized packaging solution as per client requirements

Objects of the D.K. Enterprises Global Limited IPO:

The Issue constitutes a public Issue of 1998000 Equity Shares of the Company at an Issue Price of `40/- per Equity Share. Net Proceeds to be used in: 1. Setting up of new Manufacturing Unit at Baddi, Himachal Pradesh 2. To Meet Incremental Working Capital Requirements 3. For General Corporate Purposes 4. To meet Public Issue Expenses
DRHP of D.K. Enterprises Global Limited IPO

D.K. Enterprises Global Limited IPO Details:

Open Date: Oct 07 2021
Close Date: Oct 12 2021
Total Shares: 1,998,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 7.99 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 40 Per Equity Share
Listing At: NSE Emerge
Listing Date: Oct 22 2021

Promoters And Management:

i. Mr. Rakesh Kumar, aged 68 years is Promoter, First Director of the Company. He is holding the degree of Bachelor of Engineering in Electrical from Punjabi University, Patiala. He is appointed as the first director on Incorporation of the Company, i.e. from February 26, 2019. At present, he is Chairman Cum Managing Director for a term of 5 years w.e.f. March 1, 2021. He has a rich work experience of more than 3 decades in the field of paper based packaging industry, BOPP Tapes, and Gummed Paper Tapes. He is the guiding force behind all the corporate decisions and is responsible for the entire business operations of the Company since incorporation. ii. Mrs. Rekha Bansal, aged 64 years, holds Degree of Master of Arts (History). She is a Promoter cum whole-time Director of the company. She was originally appointed as director of the company on incorporation. Subsequently, she was appointed as a Whole Time Director of the company w.e.f March 01, 2021, for a period of five years. She is having experience of more than 24 years in the field of the paper-based packaging industry, BOPP Tapes and Gummed Paper Tapes. She has been the sole proprietor of D.K. Enterprises, firms taken over by the company. She combines the quality of a businesswoman and a housewife very nicely. She has been awarded “Best Woman Entrepreneur” by Canara Bank, Chandigarh circle in the year 2005. iii. Mr. Dhruv Rakesh, aged 34 years, holds the degree of Bachelor of Engineering in Computer Science & Engineering from PEC University of Technology, Chandigarh, and Master of Business Administration (International Business) from Indian Institute of Foreign Trade (IIFT) (Deemed University). He is Promoter Cum executive director of the company. He is appointed as a Director since the Incorporation of the Company, i.e. February 26, 2019. Subsequently, he was appointed as an Executive Director of the company for the period of five years w.e.f March 01, 2021. He has an experience of more than 5 years in the field of manufacturing and marketing of the paper-based packaging industry, BOPP Tapes, and Gummed Paper Tapes. He has been instrumental in setting up partnership firm Satguru Engravures in which the company at present holds an 80% stake

Financials of D.K. Enterprises Global Limited IPO:

Particulars (in Lakhs) Mar 21 Mar 20
Revenue from operations 6,483.89 4511.24
Cost of Raw Material Consumed 5,247.06 3649.1
Changes in Inventories -21.49 -29.33
Employee Benefit Expense 241 199.58
Other expenses 601.13 438.41
Operating Profit 416.19 253.48
OPM% 6.42% 5.62%
Other Income 11.9 43
Finance cost 70.79 55.39
Depreciation and amortization 53.3 35
Profit before tax 304.01 206.97
Profit for the year 243.86 149.51
EPS 5.91 4.22

Comparison With Peers:

As per the DRHP, D.K. Enterprises Global Limited IPO has shown Anuroop Packaging, Hindustan Adhesives and GKP Printing as its listed peers. They are currently trading at a P/E of 25x, 15x and 86.85x. So, the asking valuation of D.K Enterprise IPO looks reasonable.

Recommendation on D.K. Enterprises Global Limited IPO:

Review and Recommendation of D.K Enterprise Limited IPO by InvestorZone is 4/10 1. D.K Enterprise has grown at good rate from FY20 to FY21 wherein their revenue has shoot up from Rs.45 Crores to 65 Crores. 2. PAT has grown from 1.5 Crores to 2.4 Crores from FY20 to FY21. 3. Manageable D/E of 0.82x. 4. P/E stands at 12x ( reasonable valuation). 5. Management quality and experience is good.

Lead Manager of D.K. Enterprises Global Limited IPO:

  1. Beeline Broking Limited

Registrar of D.K. Enterprises Global Limited IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

D.K. Enterprises Global Limited Plot No-235 Industrial Area Phase-2 Panchkula, Haryana 134109 Phone: 91 172 259 1548 Email: cs@dkenterprises.co.in Website: http://www.dkenterprises.co.in/

Discussion on D.K. Enterprises Global Limited IPO:

3 Comments

    Total Shares Outstanding = 5510000

    Total New Shares to be issued = 1998000

    Total Outstanding Shares after IPO = 75,08,000

    PAT = 243,00,000

    EPS = 3.23

    Issue Price = 40

    P/E =12.56x…

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