Kalyani Cast Tech Ltd IPO Review

Study Notes

Company Overview

Kalyani Cast Tech Ltd is an Indian company that specializes in the manufacturing of cast iron and steel castings.
The company is a part of the Kalyani Group, a conglomerate with interests in automotive, engineering, and other industries.

IPO Details

IPO Date: June 2022
Issue Type: Initial Public Offering (IPO)
Issue Size: ₹1,250 crores (approximately $167 million USD)
Face Value: ₹5 per equity share
Price Band: ₹158-166 per equity share

Objectives of the IPO

To raise capital for the company's expansion plans, including the setting up of new manufacturing facilities and the modernization of existing ones.
To repay debt and improve the company's financial position.
To provide liquidity to existing shareholders.

Business Operations

Kalyani Cast Tech Ltd has a strong presence in the automotive and engineering industries, with a customer base that includes major players such as Tata Motors, Mahindra & Mahindra, and Ashok Leyland.
The company has a diversified product portfolio that includes engine blocks, cylinder heads, gearboxes, and other precision castings.
Kalyani Cast Tech Ltd has a strong focus on research and development, with a dedicated R&D team that works on developing new products and improving existing ones.

Financial Performance

Revenue: ₹1,342 crores (approximately $179 million USD) in FY2021, with a growth rate of 15% over the previous year.
Net Profit: ₹143 crores (approximately $19 million USD) in FY2021, with a growth rate of 20% over the previous year.
EBITDA Margin: 15.1% in FY2021, with a growth rate of 100 basis points over the previous year.

Risks and Challenges

The company is exposed to risks associated with the automotive and engineering industries, including fluctuations in demand and changes in government regulations.
Kalyani Cast Tech Ltd is dependent on a few major customers, which can make it vulnerable to changes in their business operations.
The company faces intense competition from other casting manufacturers, which can impact its pricing power and market share.

Description

Get familiar with Kalyani Cast Tech Ltd's IPO details, business operations, financial performance, and risks. Understand the company's objectives, products, and challenges in the automotive and engineering industries.