-- / --
Kent R O Systems IPO Details
Issue Date
--
Investment/lot
--
Price Range
--
Lot Size
--
IPO Size
N/A
Schedule of Kent R O Systems IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Kent R O Systems IPO
The IPO of Kent R O Systems comprises only an offer for sale and no fresh issue. The offer for sale aggregates up to 10,094,568 equity shares and it’s a 100% book-built offer. The IPO opens on TBA and closes on TBA with the price band of shares between TBA.
The listing date is on TBA and the allotment date is on TBA. The credit of shares to the Demat accounts of allottees will be on TBA and the initiation of refunds will happen on TBA.
Kent is well-established and is recognised as the pioneer in introducing reverse osmosis (RO) technology in the water purifier product category in India. Over the years, the company has introduced a range of innovative products to address real-world challenges and cater to evolving consumer requirements.
Objectives of Kent R O Systems IPO
The objects of the offer are to achieve the benefits of listing the equity shares on the stock exchanges and for the offer for sale of up to 10,094,568 equity shares. The company expects that listing of the equity shares will enhance its visibility and brand and provide liquidity to its existing shareholders. Listing will also provide a public market for the equity shares in India.
The company will not receive any proceeds from the offer. All proceeds from the offer will go to the promoter selling shareholders, in proportion to the equity shares offered by them in the offer for sale.
Kent R O Systems IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue Size | NA |
Offer for Sale | Up to 10,094,568 equity shares |
EPS in (₹) for FY 24 | 15.67 |
Kent R O Systems IPO Lot Size
| Application | Lots | Shares | Amount in INR |
|---|---|---|---|
Individual Investors (Retail) (Min) | TBA | TBA | TBA |
Individual Investors (Retail)(Max) | TBA | TBA | TBA |
S-HNI (Min) | TBA | TBA | TBA |
S-HNI (Max) | TBA | TBA | TBA |
B-HNI (Min) | TBA | TBA | TBA |
Kent R O Systems IPO Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the offer |
Non-institutional investors | Not less than 15% of the offer |
Retail individual investors | Not less than 35% of the offer |
Industry Outlook
The Indian water purifier market has exhibited continuous growth over the years. It has grown at a CAGR of approximately 4.9% from ₹6960 crores in fiscal 2019 to ₹8860 crores in fiscal 2024 and is further expected to grow at a CAGR of approximately 10.1% till fiscal 2029 to reach a market value of ₹14,350 crores.
Also, the Indian water purifier product market has exhibited continuous growth over the years. It has grown at a CAGR of approximately 5% from ₹3800 crores in fiscal 2019 to ₹4860 crores in fiscal 2024 and is further expected to grow at a CAGR of approximately 10% till fiscal 2029 to reach a market value of ₹7830 crores.
The high growth rate of the water purifier market can be attributed to various factors, including increasing population, rising disposable income, growing water contamination, a surge in cases of water-borne diseases, increasing health consciousness among individuals, and the growth in electrification.
As awareness of water contamination and the benefits of purified water increases, it is expected that more households will invest in water purifiers, driving market growth. In particular, tier-2 cities in India are expected to experience higher growth in the near future.
Company Information
Kent is well-established and is recognised as the pioneer in introducing reverse osmosis (RO) technology in the water purifier product category in India. The company’s water purifiers have received the NSF/ANSI 58 (an American national standard for point-of-use revenue osmosis systems) certification, making it the first and only water purifier manufacturer in India to obtain this certification.
Over the years, the company has introduced a range of innovative products to address real-world challenges and cater to evolving consumer requirements. It focuses on practical, user-centric solutions to differentiate itself from competition and fuel its growth. Its commitment to innovation in the water purifier product category has extended beyond mere water purification.
Strengths of Kent R O Systems
- Category pioneer in R O water purifiers in India, with a large user base
- Strong commitment to innovation
- Focused brand-building initiatives for enhancing brand equity
- Capability to build new brands
- Leveraging brand strength for a diverse product portfolio and increased consumer wallet share
- Streamlined manufacturing operations
- Delivering strong financial performance with large reserves
- Multi-channel pan India distribution and service network and growing international presence
- Experienced promoters and senior management team
Risks of Kent R O Systems
- Inability to anticipate and adapt to evolving consumer preferences and demand for water purifier products may adversely impact demand for products
- Short operating history in the kitchen and home appliances and fans product categories presents significant challenges
- Availability of counterfeit products could have an adverse effect on business
- Increase in competition may adversely affect business, results of operations, financial condition and cash flows
- Interruptions in the supply of raw materials or fluctuations in raw material prices could adversely affect ability to manufacture products
- Manufacturing facilities are subject to operating risks
- Business may be adversely affected by work stoppages, increased wage demands by employees, or an increase in minimum wages
- Inability to effectively manage growth or implement growth strategies may have an adverse effect on business
- Failure to derive the desired benefits from product research and development efforts may hurt competitiveness
- Failure to derive the desired benefits from product research and development efforts may hurt competitiveness.
All Financial Information about Kent R O Systems (in ₹ crores)
Comparison with peers
| Company | EPS (in ₹) | Return on Net Worth (in %) | NAV Per Equity Share (in ₹) |
|---|---|---|---|
Kent R O Systems | 15.67 | 9.93 | 157.90 |
Havells India | 20.28 | 17.08 | 118.69 |
Eureka Forbes | 4.94 | 2.27 | 217.03 |
Whirlpool India | 17.11 | 6.14 | 278.69 |
V-Guard Industries | 5.89 | 14.36 | 40.92 |
Bajaj Electricals | 11.39 | 9.02 | 126.06 |
Anchor Investor Bidding Date
TBA
IPO Registrar and Book Running Lead Managers
- IPO Registrar: KFin Technologies
- Book Running Lead Managers: Motilal Oswal Investment Advisors and JM Financial
Kent R O Systems Business Model
Kent’s product offerings primarily include water purifiers, kitchen and home appliances, fans and water softeners. The water purifiers and softeners offered by it includes:
- RO water purifiers
- Ultraviolet water purifiers
- Gravity-based ultrafiltration water purifiers
- Nectar hydrogen water makers
- Whole house filters
Fans manufactured by the company include ceiling fans, pedestal fans, wall fans and table fans. Kitchen and home appliances include egg boilers, mixer grinders, hand blenders, cookware, air purifiers, air fryers, electric kettles and vacuum cleaners.
Kent R O Systems Growth Trajectory
Kent’s revenue from operations stood at ₹1178.185 crores in FY 24, up from ₹1047.367 crores in FY 22. Its revenue growth on a year-on-year (YoY) basis jumped from 3.54% in FY 23 to 8.65% in FY 24.
The company’s revenue from operations increased at a CAGR of 6.06% between fiscal 2022 and fiscal 2024 while its profit after tax from continuing operations increased at a CAGR of 3.90% between the aforesaid period. Strong commitment to innovation and capability to build brands have helped in the company’s growth.
Kent R O Systems Market Position
As of September 30, 2024, Kent had 1,898 channel partners and its products are available in 6 large format retail chains, 50 regional retail chains, 34 CSD and 92 CPC stores. As of September 30, 2024, its products were sold on six e-commerce websites and four quick commerce platforms.
Between April 1, 2021 and September 30, 2024, the company sold its water purifiers in more than 30 countries, including Nepal, Bangladesh, Kuwait and UAE, through its distributors.
Kent R O Systems Profit and Loss (in ₹ crores)
| Parameter | FY24 | FY23 | FY22 |
|---|---|---|---|
Total Income | 1260.661 | 1109.144 | 1085.672 |
Profit Before Tax | 221.014 | 132.152 | 207.173 |
Profit After Tax | 166.983 | 97.615 | 154.680 |
EBITDA | 182.002 | 149.383 | 200.809 |
EPS in ₹ | 15.67 | 9.08 | 14.23 |
Kent R O Systems Cash Flow Statement
| Parameter | FY24 | FY23 | FY22 |
|---|---|---|---|
Profit Before Tax | 220.546 | 131.665 | 206.684 |
Net Cash Flows from Operating Activities | 155.525 | 63.741 | 115.791 |
Net Cash Flows From/(Used in) Investing Activities | (131.624) | (30.148) | (123.427) |
Net Cash (Used in)/ Flows from Financing Activities | (15.602) | (35.466) | 7.886 |
Cash and Cash Equivalents at the End of the Period/year | 19.173 | 10.835 | 12.785 |
How to Check Allotment Status of Kent R O Systems IPO?
1. Visit the Registrar’s Website
- Visit the official website of KFin Technologies
- Click on ‘IPO Allotment Status’ from ‘Investors’ under ‘Products’
- Click on any one of the appearing links
- Choose IPO name and enter either your application number, Demat account or PAN number
- Enter captcha and click on ‘Submit’ to know the status
2. Check on the National Stock Exchange Website
The National Stock Exchange (NSE) website has an IPO bid verification module. You can use it to check the allotment status of Kent R O Systems. Go to the NSE website and find the ‘Invest’ tab. Click on ‘Verify IPO Bids’ under ‘Resources & Tools’.
On the NSE IPO bid verification page, enter:
- Company name from dropdown
- Application number
- PAN
Then click ‘Submit’ to know the allotment status.
3. Check on the BSE Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to the BSE website and find the ‘Investors’ tab. Under ‘Investors’, click on ‘IPO’. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Select ‘Equity’ from the dropdown menu
- Choose ‘Kent R O Systems’ in the next dropdown
- Enter your application number
- Enter your PAN
- Click ‘Search’ to know allotment status
How to Apply for Kent R O Systems IPO?
To apply for this IPO:
- Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange.
- Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Approve Request: Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Kent R O Systems IPO FAQs
What is the Kent R O Systems IPO?
The IPO of Kent R O Systems is a 100% book-built issue comprising an offer for sale of up to 10,094,568 equity shares. It has no fresh issue.
When is the Kent R O Systems IPO coming?
The exact dates of the IPO are yet to be known.
Who is the Chairman and MD of Kent R O Systems?
Mahesh Gupta is the Chairman and MD of Kent R O Systems.
What is the lot size of shares in the Kent R O Systems IPO?
The lot size of shares in the IPO is yet to be decided.
From where can I read more about the IPO of Kent R O Systems?
You can read more about the IPO of Kent R O Systems from the company’s draft red herring prospectus here.