Labelkraft Technologies Limited IPO

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i. Labelkraft Technologies is engaged in the business of providing barcode code solutions, catering to many different segments of industries including FMCG, logistics service providers, chemicals, garments etc. They supply barcode printers, software, scanners, mobile computers etc. and are also engaged in the business of manufacturing the regular consumables required for the barcode printers namely the barcode ribbons, self-adhesive barcode and product labels in roll and sheet forms with help of their machines.

ii. The company has the required infrastructure and set up for manufacturing of both plain labels and preprinted barcode labels with the in-house capabilities. They have installed flat-bed machines, flat-bed printing machines, flexo printing machines with 5 color printing capacity, rotary machines and slitting machines which enable us to meet the requirements of their customer in time.

iii. Apart from the above, they have also installed a self-adhesive tape slicing machine to slit mirror mounting tapes, tissue tapes, masking tapes etc. which are supplied to various industries across the country for their packaging needs. They are also engaged in supply of ID card printers, consumables, patient identification wrist bands, automatic label applicator machines, satin, taffeta rolls for garment companies and self-adhesive tape products.

iv. The company offers quality products and services at cost effective prices. With their attitude towards quality and service to their customers, they have obtained a long list of reputed clientele including companies like Wipro GE Healthcare Private Limited, Titan Company Limited, ITC Ltd and Indian Oil Corporation.

v. Apart from the above, they have experience in the business of trading of duty credit scrips required to pay customs duty by the importers. These scrips are transferable as per Foreign Trade Policy of Government of India. These are procured from exporters of various products and sold to importers for their customs duty payments.

vi. Labelkraft Technologies deals in a wide range of products used in the barcode and RFID labelling, tagging and scanning solutions along with the products used in providing solutions related to packaging of materials.

vii. Below are the details of products company deals in –

i. Barcode labels and Tags

ii. Barcode label printers and software

iii. Barcode ribbons

iii. Barcode scanners

iv. Adhesive tapes and related products

Competitive Strengths

i. Experience of the Promoter and core management team
ii. Comprehensive range of offerings that provide a “one stop shop” for barcode solutions.
iii. Existing relationship with the clients
iv. Cost competitiveness and time bound delivery

 

Objects of the Labelkraft Technologies Limited IPO:

The company intends to utilize the proceeds of the Issue to meet the following objectives: i. Funding Capital Expenditure towards the installation of additional plant and machinery ii. Funding of Working capital requirements iii. General Corporate Purpose iv. Issue expenses.
DRHP of Labelkraft Technologies Limited IPO
RHP of Labelkraft Technologies Limited IPO

Labelkraft Technologies Limited IPO Details:

Open Date: Mar 13 2023
Close Date: Mar 15 2023
Total Shares: 864,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 4.75 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 55 Per Equity Share
Listing At: BSE SME
Listing Date: Mar 23 2023

Promoters And Management:

i. Ranjeet Kumar Solanki, aged 50 years, is the Promoter, Chairman and Managing Director of the Company. He has been on the Board since incorporation of the Company. He has completed Higher Secondary in the year March 1988. He has an overall experience of 25 years out of which 14 years of experience in the field of manufacturing of label and barcode related industry. He is a visionary entrepreneur and has played a pivotal role in setting up business of the Company. He primarily looks after the overall business operations of the Company including business development, administration and formulation of policies. Under his guidance the Company has witnessed continuous growth. ii. Hemalatha, aged 48 years, is Non - Executive Director of the Company. She has been on the Board since incorporation of the Company. She passed her examination of 8th Class in the year March, 2013. She has an experience of around 1 year in the field of sales and marketing and exporting of goods. iii. Shraddha, aged 28 years, is Whole Time Director & CFO of the Company. She has been on the Board since incorporation of the Company. She has been appointed as Chief Financial Officer of the Company w.e.f. December 20, 2022. She is a Member of Institute of Chartered Accountant of India. She has an experience of around 6 years in the field of accounting, auditing, taxation, restructuring, corporate governance and allied areas.

Financials of Labelkraft Technologies Limited IPO:

Particulars ( In Lakhs ) 2022 (10 Oct - 30 Nov )
Revenue from Operations 67
Other Income 0.73
Total Revenue 68
Cost of Materials Consumed 34
Purchase of Stock-in-Trade 33
Change in Inventories -27
Employee Benefits Expense 9
Other Expenses 10
EBITDA 8
Depreciation & Amortisation 2
Finance Cost 0.17
EBIT 5
OPM (%) 11.72%
PBT 5
Taxes 1
PAT 4
NPM (%) 5.96%
No.of Shares 32
EPS 0.12
P/E 436.23

Comparison With Peers:

There are no listed companies in India which are engaged in the similar business.

Recommendation on Labelkraft Technologies Limited IPO:

They have converted into Public Limited Company recently and based on Fy23 earnings, the IPO looks over priced.

Lead Manager of Labelkraft Technologies Limited IPO:

  1. Hem Securities Limited

Registrar of Labelkraft Technologies Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Labelkraft Technologies Limited 14/12, Jayachamarajendra Road, Bengaluru - 560002 Phone: +91 080-40927665 Email: cs@labelkraft.com Website: http://www.labelkraft.com/

Discussion on Labelkraft Technologies Limited IPO:

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