IPO Details
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Schedule of Krishna Copper IPO
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Allotment of bids
Refund Initiation
Listing on exchange
About Krishna Copper IPO
The IPO of Krishna Copper Ltd comprises a fresh issue of up to 18,96,000 equity shares with no offer for sale. The IPO is a 100% fixed price issue. The IPO will commence on TBA and end on TBA. The credit of shares to the demat account will take place on TBA. The basis of allotment will take place on TBA and the initiation of refunds will take place on TBA.
Objectives of Krishna Copper IPO
- Repayment or prepayment of all or a portion of certain outstanding borrowings availed by the company
- Funding of capital expenditure requirements of the company towards technological upgradation, cost optimisation of its operations and support to the existing manufacturing facility at Valsad, Gujarat
- Funding its working capital requirements
- General corporate purposes
Krishna Copper IPO Valuation
Industry Outlook
Copper holds a rich history in India and has been an integral part of Indian civilisation. The metal's versatility and durability made it prized for crafting tools, weapons, ornaments, and vessels. Today, copper continues to play a crucial role in India's development and progress across various sectors.
Its conductivity, corrosion resistance, and malleability make it indispensable in industries like agriculture, construction, automotive, electronics, and industrial applications. Copper demand in India is expected to grow from an estimated 1,689 kilotonnes in CY 2023 to reach 2,546 kilotonnes by CY 2028, growing at a CAGR of 8.6% between CY 2023 – 2028.
Company Information
Krishna Copper Ltd is engaged in the business of manufacturing, buying, selling, exporting, hot rolling and melting of copper, brass, bronze and copper alloys products such as wires, strip, foils, rods, flats, sections, profiles, sheets, plates balls, anodes, nuggets, cold-forging components etc., through recycling of high-quality copper scrap and other copper raw materials.
The company has the ability to sell intermediate and final products across the copper value chain. The copper material, which its produces, achieves an electrical conductivity of 101% IACS (International Annealed Copper Standard) or (5.8001 x 107S/m) SIEMENS and also has electrical and mechanical properties suitable for applications in power plant refineries, ship building, defence, gas, hydro power projects, power transmission, electronics, cables, telecommunication, etc.
Strengths of Krishna Copper IPO
Integrated Operations Across the Copper Value Chain
Krishna Copper Ltd is an integrated metal producing company based in India and one of the integrated copper, brass, bronze and copper alloys producers in the western region of India. It currently operates an ‘ore to metal’ integrated copper manufacturing facility in Valsad, Gujarat.
The integrated nature (backward and forward integration) of its manufacturing facility has resulted in the control over all aspects of its operations (with the exception of sourcing of primary raw materials) as well as operating margins, thereby enabling it to focus more on quality and create multiple points of sale across the copper value chain.
Diverse Product Mix with Strong Focus on Value Added Products
The company’s products primarily comprise of long copper, brass, bronze and copper alloys products, which range from intermediate and final products, such as plates, rods, strips, wires, foils, sheets, flats, sections, shapes, components, parts, profiles, slabs alloys products and non-ferro alloys with a specific focus on high margin products, such as, cadmium copper, chromium copper, sulphur bearing copper, zirconium copper, chromium zirconium copper, silver bearing copper, tellurium copper for special electrical applications
Strategically Located Manufacturing Facility Supported by Robust Infrastructure Resulting in Cost and Time Efficiencies
Krishna Copper Ltd’s manufacturing facility is strategically located in close proximity to its raw material sources, which it believes lowers its transportation costs and provides significant logistics management and cost benefits thereby improving its operating margins.
The company believes the strategic location of its manufacturing unit has helped it in creating synergies as well as achieving economies of scale and operational efficiencies.
Risks of Krishna Copper IPO
- Dependence on Key Customers
A certain amount of its revenue is generated from certain key customers, and the loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for the company’s products could adversely affect its business, results of operations, financial condition and cash flows.
- No Long-term Agreement with Customers
The company doesn’t have long-term agreements with its customers which would have a material adverse effect on its business, results of operations and financial condition. It’s also exposed to risks of lower sales volume or lower price realisation on such volumes depending on prevailing market conditions, as a result of such short-term arrangements.
- Volatility in Price of Raw Materials
The costs of the raw materials that we use in our manufacturing process are subject to volatility due to factors beyond its control. Increases or fluctuations in raw material prices may have a material adverse effect on its business, financial condition, results of operations and cash flows.
- Geographical Concentration
The company generates a major portion of its revenue from certain geographical regions especially Maharashtra, Gujarat, Tamil Nadu and Karnataka. Any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.
Krishna Copper IPO Financials
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Peer Comparison
| Company | EPS in ₹ | Return on Net Worth in % | NAV in ₹ |
|---|---|---|---|
Krishna Copper Ltd | 6.78 | 47.77 | 14.19 |
Rajnandini Metal Ltd | 0.55 | 26.87 | 2.05 |
Cubex Tubings Ltd | 2.78 | 5.76 | 48.32 |
Baroda Extrusion Ltd | (0.07) | 2.79 | (2.65) |
IPO Registrar and Book Running Lead Manager
- IPO Registrar: Bigshare Services Pvt Ltd
- Book Running Lead Manager: Socradamus Capital Pvt Ltd
Business Model
Krishna Copper Ltd primarily produce intermediate and long copper, brass, bronze and copper alloys products, such as plates, rods, strips, wires, foils, sheets, flats, sections, shapes, components, parts, profiles, slabs alloys products with a specific focus on high margin products, such as, cadmium copper, chromium copper, sulphur bearing copper, zirconium copper, chromium zirconium copper, silver bearing copper, tellurium copper for special electrical applications in the same form.
Its copper, brass, bronze and copper alloys products are sold under the brand ‘KRISCOP’ and have the same logo. Additionally, it undertakes conversion of hot rolled plates, rods, strips to wires, foils, sheets, flats, sections, shapes, components, parts, profiles, copper scrap to copper alloys.
Company’s Growth Trajectory
The revenue from operations of Krishna Copper Ltd grew from ₹26.0851 crores in FY 22 to ₹35.9085 crores in FY 24. Its EBITDA margin grew from 3.28% in FY 22 to 10.87% in FY 24, while PAT margin grew from (0.16%) in FY 22 to 8.07% in FY 24.
The company is led by individual promoters, Mohanlal Bherulal Jain and Mahendra Mohanlal Sanghvi who have extensive experience in the copper manufacturing industry for over thirty-five years and twenty years respectively. Through their expertise and visionary leadership, Krishna Copper Ltd has expanded its business operations, diversified its product offerings, and successfully cultivated a vast client base that spans across the globe.
Market Position
A ISO 9001:2005 certified company, Krishna Copper Ltd operates one manufacturing facility located at Valsad, Gujarat equipped with requisite machineries and equipment. Its manufacturing facility caters to customers majorly in the western and southern regions of India. Its product offerings cater to a mix of customers that consist of institutional customers and end-use consumers who use its products as applications.
Its domestic customers include OBO Bettermann India Pvt. Ltd., Baroda Extrusions Limited, Bharat Electronics Limited, Hindustan Aeronautics Limited, etc. Our international customers include customers from South Africa, Norway, UAE, UK, USA, Israel, Brazil, Spain, Ireland, Egypt, Oman, Uganda, etc.
Krishna Copper IPO Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 36.26 | 23.14 | 26.32 |
Profit/(Loss) Before Tax (in ₹ crores) | 2.91 | 1.18 | 0.03 |
Profit After Tax (in ₹ crores) | 2.89 | 1.14 | (0.04) |
EPS in ₹ | 6.78 | 2.72 | (0.10) |
Krishna Copper IPO Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit/(Loss) Before Tax (in ₹ crores) | 2.91 | 1.18 | 0.03 |
Net Cash Generated/ (used in) from Operating Activities (in ₹ crores) | 1.92 | (0.94) | 1.08 |
Net Cash Generated/ (used in) Investing Activities (in ₹ crores) | (0.48) | (0.16) | (0.55) |
Net Cash Generated/ (used in) Financing Activities (in ₹ crores) | (1.43) | 1.10 | (0.61) |
Cash and Cash Equivalents at the end of the Year (in ₹ crores) | 0.01 | 0.01 | 0.02 |
How to Check Allotment Status of Krishna Copper IPO?
Visit the Registrar’s Website
- Visit the official website of Bigshare Services Private Ltd
- Choose ‘IPO Allotment Status’ under ‘Solutions’
- Click on any one of the server links
- Select company from dropdown and enter either your application number, beneficiary ID or PAN number
- Enter captcha and click on ‘Search’ to know the status
Check on the NSE Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Krishna Copper Ltd. Go to www.nseindia.com 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.
How to Apply for Krishna Copper IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: 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.
Krishna Copper IPO FAQs
Where can I read more about Krishna Copper business?
You can read more about Krishna Copper and its IPO from the company’s red herring prospectus (RHP) here.
What is the Krishna Copper IPO?
The IPO of Krishna Copper Ltd comprises a fresh issue of up to 18,96,000 equity shares.
When will the IPO of Krishna Copper go live?
The exact dates of the IPO are yet to be announced.
