SK Minerals & Additives IPO Details
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Schedule of SK Minerals & Additives IPO
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Allotment of bids
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Listing on exchange
About SK Minerals & Additives IPO
The offer consists of a fresh issue component. The fresh issue will include up to 32,40,000 equity shares. The total number of shares and aggregate amount are yet to be finalised. The price band is TBA. The lot size is TBA.
The opening date is TBA. The closing date is TBA. The allotment date is TBA. The credit of shares to the demat account will take place on TBA. The initiation of refunds will take place on TBA.
SK Minerals & Additives Limited focuses on the trading and manufacturing of specialty chemicals, primarily focusing on food and feed additives. Their manufacturing operations are supported by a dedicated in-house Research and Development (R&D) unit, located at their DSIR-certified facility in Khanna, Ludhiana, Punjab. Their R&D efforts focus on innovation, product differentiation, process improvement, and customer-centric formulation development. Every manufactured product is developed in-house to ensure cost-efficiency, nutritional integrity, and performance enhancement.
Objectives of SK Minerals & Additives IPO
- To meet the working capital requirements of the company.
- To fund the expansion plan of the company i.e. capital expenditure towards purchase of plant and machinery.
- General corporate purpose.
SK Minerals & Additives IPO Valuation
Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net offer |
Non-institutional Investors (NIIs) | Not less than 15% of the net offer |
Retail-individual Investors (RIIs) | Not less than 35% of the net offer |
Industry Outlook
The Indian food and feed additives industry is growing rapidly, driven by rising processed food consumption, expanding livestock production, and a shift toward health and nutrition. Demand is boosted by the growth of dairy (CAGR of ~6%) and bakery (CAGR of ~9%) sectors.
The Indian food and feed additive market is highly fragmented, with ~3,000 players, where ~15-20 large players (average revenue of ₹300-500 crore) control ~25% of the market share, contributing ₹14,000+ crore out of ₹50,969 crore. These players are market leaders, mostly with extensive resources for innovation, marketing, and distribution, and they have a well-established presence across multiple verticals. They mainly invest 0.5-2% on average in their R&D and regulatory compliance, leveraging scale for diverse portfolios. Medium-sized companies account for the ~29% share in the market, with individual revenues falling between ₹50 crore and ₹300 crore. Micro and small companies make up ~43% of the market.
To align with global benchmarks and capitalise on emerging opportunities, companies operating in India's food and feed additive industry are systematically expanding their production capacities, such as Camlin. This approach is intended to enhance supply reliability, reduce dependence on imports, and meet the specific requirements of both domestic and international markets. Concurrently, there is a notable increase in investments towards research and development (R&D), particularly through DSIR-recognised in-house facilities, as firms focus on developing innovative formulations, improving functional performance, and catering to evolving end-use applications.
The "Make in India" manufacturing opportunity in the feed and food additive category presents a potential obtainable opportunity of 400 crore of topline addition in the space in the next five years for emerging innovators that are positioned today with a DSIR-recognised in-house facility and are consistently investing in R&D for innovative formulations.
Company Information
SK Minerals & Additives Limited is engaged in the business of trading and manufacturing of specialty chemicals, with a primary focus on food and feed additives. Over the years, they have established themselves as a reliable partner catering to the diverse needs of customers across multiple industry segments. Their product portfolio comprises a wide range of ingredients and additives that play a crucial role in enhancing the nutritional value, functionality, and shelf life of various end products.
Their key products include chelated minerals such as glycinates and EDTAs (ethylenediaminetetraacetic acid) in variants of zinc, copper, and magnesium; essential mineral mixtures; calcium propionate; ferric pyrophosphate; technical grade urea; virgin base oil; magnesium oxide; by-pass fat and other allied specialty chemicals. These products serve critical functions in various applications, particularly in the food and bakery, animal feed, petroleum, plywood, and other allied industries.
They operate through a flexible business model that integrates domestic trading, imports, and in-house production. A significant portion of their trading products is imported from global suppliers, particularly specialty chemicals, which are then stored at warehouses at ports before dispatch to customers. This model enables them to ensure better control over inventory, product quality, and timely deliveries.
Strengths of SK Minerals & Additives IPO
- More than 35% revenue generated through government customers
- Strengthening business resilience through client diversification
- Diverse geographical presence across India
- Mixed trading and expanding manufacturing footprint
- Ability to cater to diverse industries
Risks of SK Minerals & Additives IPO
- Reliance on third-party suppliers
- Demand from B2B customers
- Unexpected shutdown or slowdown at their manufacturing facility
- Wage increases in India
- Extent and reliability of Indian infrastructure
SK Minerals & Additives Financials
Anchor Investor Bidding Date: TBA
Registrar: Maashitla Securities Private Limited
Book Running Lead Managers: Khambatta Securities Limited
SK Minerals & Additives Business Model
The company earns its revenue through the following: Trading and manufacturing specialty chemicals, with a primary focus on food and feed additives.
SK Minerals & Additives Company Growth Trajectory
SK Minerals & Additives Limited shows fluctuating revenue performance with revenue from operations decreasing by ₹23.46 crores or 17.74% to ₹108.77 crores in fiscal 2024 as compared to ₹132.23 crores in fiscal 2023. The revenue from operations decreased primarily due to a decrease in revenue from trading operations.
Their revenue from sale of manufactured products, i.e., food and animal feed additives, increased by ₹8.44 crores or 32.85% to ₹34.12 crores in fiscal 2024 as compared to ₹25.68 crores in fiscal 2023. The revenue from trading of products, i.e., industrial chemical and animal feed additives, decreased by ₹31.90 crores or 29.94% to ₹74.65 crores in fiscal 2024 from ₹106.55 crores in fiscal 2023. Other income decreased by ₹0.20 crores or 53.87% to ₹0.17 crores in fiscal 2024 compared to ₹0.36 crores in fiscal 2023.
Their EBITDA increased by ₹2.89 crores or 74.04% to ₹6.80 crores in fiscal 2024 from ₹3.91 crores in fiscal 2023. Their profit for the year increased by ₹1.20 crores or 63.36% to ₹3.10 crores in fiscal 2024 compared to ₹1.89 crores in fiscal 2023.
SK Minerals & Additives Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 108.93 | 132.59 | 121.80 |
Profit Before Tax (in ₹ crores) | 4.10 | 2.75 | 2.31 |
Profit After Tax (in ₹ crores) | 3.09 | 1.89 | 1.66 |
EPS (Basic) ₹ | 8.57 | 25.42 | 926.33 |
EBITDA (in ₹ crores) | 6.79 | 3.90 | 2.22 |
SK Minerals & Additives Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 4.10 | 2.75 | 2.31 |
Net Cash from Operating Activities (₹ crores) | -9.01 | -11.19 | -4.01 |
Net Cash from Investing Activities (₹ crores) | -2.01 | -1.93 | -1.60 |
Net Cash from Financing Activities (₹ crores) | 12.88 | 13.54 | 5.58 |
Net Cash & Cash Equivalents (₹ crores) | 2.36 | 0.51 | 0.09 |
How to check allotment status of SK Minerals & Additives IPO?
Visit the Registrar's Website
To check the IPO allotment status for SK Minerals & Additives Limited IPO, visit the official website of Maashitla Securities Private Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the ‘Submit’ button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.
Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com 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 'SK Minerals & Additives Limited' in the next dropdown
- Enter your application number
- Enter your PAN
- Click 'Search' Your SK Minerals & Additives Limited IPO allotment status will be displayed.
Verify on the National Stock Exchange Website The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check SK Minerals & Additives Limited IPO allotment status.
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:
- Application number
- PAN Then click 'Submit'. Your SK Minerals & Additives Limited IPO bid and allotment details will be displayed.
How to apply for SK Minerals & Additives 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.
SK Minerals & Additives IPO FAQs
Where can I read more about SK Minerals & Additives business?
You can read more about SK Minerals & Additives and its IPO from the company’s red herring prospectus (RHP) here.
What is the SK Minerals & Additives IPO?
SK Minerals & Additives Limited's IPO consists of a fresh issue of up to 32,40,000 equity shares. The total offer size is up to 32,40,000 equity shares as well.
Is SK Minerals & Additives IPO coming?
Yes, SK Minerals & Additives Limited is expected to come up with its IPO soon.
Who is the Chairman of SK Minerals & Additives IPO?
Mohit Jindal is the Chairman of SK Minerals & Additives Limited.
What is the lot size of shares of SK Minerals & Additives IPO?
The company hasn’t given any information on the lot size yet.
