Kahan Packaging Limited IPO

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i. Kahan Packaging is in the business of manufacturing and supply of Polypropylene (PP)/ High Density Polyethylene (HDPE) Woven Fabric- Laminated, HDPE/PP woven sacks, Woven Fabric- UnLaminated, PP Woven Bag, PP Woven Bag with Liner, Printed Laminates for Flexible Packaging, woven polymer based products of different weight, sizes and colors as per customer’s specifications. They offer customized bulk packaging solutions to business-tobusiness (“B2B”) manufacturers catering to different industries such as Agro Pesticides Industry, Cement Industry, Chemical Industry, Fertilizer Industry, Food Products Industry

ii. HDPE/PP are two commonly used materials in the bulk packaging industry due to benefits which includes durability, lightweight, versatility, recyclability, chemical resistance, moisture resistance, cost-effective, high tear resistance which has lower carbon footprint during transportation due to its lightweight nature. Presently, the installed production capacity of Factory-I for woven fabrics is 2,600 m.t. p.a. which is located Asangaon, Maharashtra.

iii. Over the years, they have made investments, from time to time, in their manufacturing infrastructure to support the product portfolio requirements. Recently, the Company has expanded its business and set up new manufacturing unit and installed Multi color (up-to 8 Color) Roto Gravure Printing Machine for flexible packaging and printing process including polyester, Nylon, BOPP, Foil, low and high density polyethylene polypro plane and paper with two sided printing facilities with high speed hot air dryers with installed production capacity of 500 m.t. p.a.

iv. All their products are manufactured in-house at their manufacturing units located amalgamated Inds Estate, Near Diamond Hotel, Mumbai- Nashik Highway Maharashtra, which enables them to have an effective control over the manufacturing process, to ensure consistent quality of their products and minimizing production time and bringing cost effectiveness.

Competitive Strengths:

i. Wide Range of Products
ii. In-house Manufacturing capabilities
iii. Strong relationship with customers and suppliers

Objects of the Kahan Packaging Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. To meet working capital requirements, and ii. General Corporate Purpose.
DRHP of Kahan Packaging Limited IPO
RHP of Kahan Packaging Limited IPO

Kahan Packaging Limited IPO Details:

Open Date: Sep 06 2023
Close Date: Sep 08 2023
Total Shares: 720,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 5.76 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 80 Per Equity Share
Listing At: BSE SME
Listing Date: Sep 18 2023

Promoters And Management:

i. Prashant Jitendra Dholakia, is one of the Promoter and chairman & Managing Director of the Company. He has been associated with the Company since incorporation. He has completed his Bachelor of Commerce from University of Bombay, in 1993. He has a work experience of more than 25 years in the field of Manufacturing & Packaging Industry. Being an entrepreneur he looks after core management of the company, active and enthusiastic in business activities. He is primarily responsible for the performance, overall business development, Production Department, customer support etc of the Company, including but not limited to developing strategic plans, promotion of production and growth of the Company. ii. Rohit Jitendra Dholakia, is one of the Promoter and the Whole Time Director of the Company. He has been associated with the Company since incorporation. He has completed his Bachelor of Commerce from University of Bombay in 1989. He has a work experience of over 33 years in the Manufacturing & Packaging Industry. He is playing vital role in supervision of Marketing, administration and logistic. He is responsible for the expansion and overall management of the business of the Company and his leadership abilities have been instrumental in leading the core team of the Company. iii. Purvi Prashant Dholakia, is the Whole Time Director and CFO of the Company. She has been associated with the Company since incorporation. She has completed her Bachelor of Commerce from Bombay University, in 1995. She has a work experience of 10 years in the field of Manufacturing & Packaging Industry. She is responsible for handling the financial activities of the company including finance, statutory compliance.

Financials of Kahan Packaging Limited IPO:

Pariculares ( In Lakhs )
2021
2022
2023
Revenue from Operations 1,212 1,588 1,752
Other Income 1 2.7 4
Total Revenue 1,213 1,591 1,756
Cost of Goods Sold 994 1,263 1,493
Changes in inventories of finished goods -4 9 -191
Employee Benefits Expense 29 30 26
Other Expenses 116 196 217
EBITDA 78 93 210
Depreciation & Amortisation 21 20 23
Finance Cost 50 49 57
EBIT 57 73 187
OPM (%) 6.46% 5.85% 11.95%
PBT 7 25 131
Tax 5.8 4.8 27
PAT 1.6 19.8 103
NPM (%) 0.13% 1.24% 5.89%
No.of Shares 27.2 27.2 27.2
EPS 0.05 0.72 3.80

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Kahan Packaging Limited 17.5 1 3.80 21.04 80 21.8
Sah Polymers Limited 95.3 4 1.33 86.2 114 295
Rishi Techtex Limited 107 1 1.50 15.2 26.7 19.8
Uflex Ltd 14,663 481 66.57 25.7 469 3,388
* All the data is as per FY23.

Lead Manager of Kahan Packaging Limited IPO:

  1. Hem Securities Limited

Registrar of Kahan Packaging Limited IPO:

  1. Purva Sharegistry India Private Limited

Company Address:

Kahan Packaging Limited 212, Jhalawar Service Premises, E S Patanwalla Compound, LBS Marg, Ghatkopar West, Mumbai - 400086 Phone: +91 22-25004605 Email: info@kahanpackaging.com Website: https://kahanpackaging.com/

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