Kundan Edifice Limited IPO

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i. Kundan Edifice is an EMS Company, they are primarily an original design manufacturer (“ODM”) and design, develop, manufacture and supply products to customers who then further distribute these products under their own brands.

ii. The company also work with their customers to develop, manufacture and supply products that are designed by their customers. The company focus on unconventional form of lighting products i.e., LED strip lights that have varied application across industries such as real estate, railways, automobiles, decorative lighting, etc.

iii. They provide lighting solutions to some of the key electrical and electronic manufacturing brands in India. The LED strip lights or the flexible linear lights as a concept is replacing the traditional lighting like bulbs, tube lights and many other kinds of lights since the flexible linear lights have indoor as well as outdoor application.

iv. The company has two manufacturing and assembly facilities in the state of Maharashtra with one located in Vasai and other in Bhiwandi (collectively “manufacturing facilities”).

v. The Company entered into manufacturing, assembly and sale of light emitting diode (“LED”) strip lights that have varied application across industries such as real estate, railways, automobiles, decorative lighting, etc.

Our products can majorly be divided as:

i. 120LED- HV Flex
ii. 60LED- HV Flex
iii. 60LED LV Flex
iv. 120LED LV Flex
v. 180LED LV Flex

Competitive Strengths

i. Long-term relationships with leading industry customers
ii. Strong focus on R&D
iii. Experienced Promoter Directors with extensive domain knowledge
iv. Well Established manufacturing facility designed to serve multiple products range

Objects of the Kundan Edifice Limited IPO:

The Company proposes to utilize the Net Proceeds from the issue towards the following objects: 1. Meeting incremental working capital requirements; and 2. General corporate purposes
DRHP of Kundan Edifice Limited IPO
RHP of Kundan Edifice Limited IPO

Kundan Edifice Limited IPO Details:

Open Date: Sep 12 2023
Close Date: Sep 15 2023
Total Shares: 2,772,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 25.22 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 91 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 26 2023

Promoters And Management:

Divyansh Mukesh Gupta is the Managing Director and Chairman of the Board of the Company. He holds a bachelor’s degree in commerce from the University of Mumbai. He has been on the Board since April 01, 2015 associate and has experience of over 6 years in the line of the business of the Company. Mallika Mukesh Gupta, is a Whole Time Director on the Board of the Company. She holds a bachelor degree in art from the University of Arts London. She has also completed level 4 diploma in art and design – foundation studies (QCF) from Cambridge School of Visual and Performing Arts. She is associated with the Company since September 30, 2017. She has over one year of experience in the line of the business of the Company. Girish Kumar Joshi is a Non-Executive Independent Director on the Board of the Company. He holds a bachelor and master’s degree in commerce from the Mohanlal Sukhadia University, Udaipur and is an associate member of the Institute of Chartered Accountants of India He is a partner in the firm M/s Tarun Jugal & Associates. He is a Non- Executive independent director at Integrated Personnel Services Limited

Financials of Kundan Edifice Limited IPO:

Particulares ( In Lakhs )
2021
2022
2023
Revenue from Operations 1,514 3,247 6,022
Other Income 9 3 24
Total Revenue 1,522 3,251 6,046
Cost of materials consumed 999 2,379 3,672
Changes in inventories -7 -162 68
Employee Benefits Expense 141 293 607
Other Expenses 222 459 810
EBITDA 166 282 891
Depreciation & Amortisation 30 43 84
Finance Cost 55 63 108
EBIT 137 238 807
OPM (%) 10.94% 8.66% 14.73%
PBT 82 175 699
Tax 4 7 185
PAT 77 168 513
NPM (%) 5.07% 5.16% 8.49%
No.of Shares 102.72 102.72 102.72
EPS 0.75 1.63 4.99

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Kundan Edifice Limited 60 5 4.99 18.2 91 93
Artemis Electricals and Projects Limited 58 7 0.26 35.9 14.9 374
Focus Lighting and Fixtures Limited 168 23 17.69 35.2 789 1,032
*  All the data is as per FY23.

Recommendation on Kundan Edifice Limited IPO:

Review and Recommendation of Kundan Edifice SME IPO by IZ team is 4/10 Read Review Here

Lead Manager of Kundan Edifice Limited IPO:

  1. Fedex Securities Limited

Registrar of Kundan Edifice Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Gala A/ B, Ganesh Industrial Estate, behind Burma Shell Petrol Pump, Vasai East, Palghar - 401208, Maharashtra, India

Discussion on Kundan Edifice Limited IPO:

1 Comment

    Major Risk In the Business

    Kundan Edifice’s group companies—Kundan Kundan Fastening Private Limited, Kundan Industries, and Kundan Fastners and Multitrade Private Limited—are currently embroiled in 28 income tax cases, involving a total amount of approximately 56 crore INR. Legal complications can serve as a significant risk factor for potential investors, affecting both the reputation and the financial stability of the company.

    Declining Financial Performance

    A review of the financials for Kundan Industries, one of the group companies, reveals a consistent decline in revenue, with the company posting a loss in the Fiscal Year 2022. The total debt as of March 31, 2022, stands at approximately 80 crore INR. Additionally, the interest coverage ratio is negative, indicating the company’s inability to meet its interest payments, which is a critical red flag

    Reply

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