Krishca Strapping Solutions IPO consists of a fresh issue of 33.20 lakh equity shares of ₹10 each aggregating to₹17.93 crore. at the upper end. The company has fixed the price band for the issue of ₹51 – ₹54. Krishca Strapping Solutions IPO opends on May 16, 2023 and the issue will close on May 19, 2023. The shares of the company will be listed on the NSE EMERGE platform. Krishca Strapping is a company that manufactures and sells a variety of strapping products, including steel strapping, plastic strapping, and nylon strapping. The company is headquartered in Kolkata, West Bengal, India.

IPO opensMay 16, 2022
IPO ClosesMay 19, 2023
IPO Size (Rs.)₹ 17.93 Cr
IPO Size (shares) 3,320,000  shares
Breakup entirely Fresh issue
Face Value:₹ 10
IPO Price in Rs :₹51 to ₹54 
Minimum Lot2000
Listing AtNSE SME
QIB Quota50.00%
NII Quota15.00%
Retail Quota35.00%
 Lead ManagerShare India Capital Services 
RegistrarPurva Share Registry

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  • Krishca Strapping was founded in 1990 by Mr. Krishanu Chakraborty.
  • The company started out as a small business, buthas grown rapidly in recent years.
  • Krishca Strapping is now one of the leading strapping manufacturers in India.
  • The company has a wide range of customers, including industrial companies, manufacturing companies, and logistics companies.
  • Krishca Strapping supplies its products to customers all over India and to a number of countries around the world.
  • Some of the key products and services offered by Krishca Strapping:
    • Steel strapping: Steel strapping is a strong and durable material that is used to secure a variety of loads. Krishca Strapping offers a wide range of steel strapping products, including flat steel strapping, round steel strapping, and spiral steel strapping.
    • Plastic strapping: Plastic strapping is a lightweight and flexible material that is used to secure a variety of loads. Krishca Strapping offers a wide range of plastic strapping products, including PP strapping, PET strapping, and HDPE strapping.
    • Nylon strapping: Nylon strapping is a strong and durable material that is used to secure a variety of loads. Krishca Strapping offers a wide range of nylon strapping products, including PA strapping, 650N strapping, and 1000N strapping.
    • Strapping machines: Krishca Strapping also offers a range of strapping machines that are used to apply strapping to loads. The company offers a variety of machines, including hand-held machines, pneumatic machines, and electric machines.
    • Mr. Lenin Krishnamoorthy Balamanikandan is the company promoter. Post issue holding of promoters shall stand at 62.6%.

Krishca Strapping Solutions IPO: Financials

Particulars/ Rs Lacsended 15feb23202220212020
Revenue (total income)6351.231871.71971.0598.15
Profit after Tax785.75150.54-67.25-223.92
Share Capital500500301.36301.36
Net Worth945.26159.51-120.2864.34
Diluted Earnings15.713.012.337.43
Net Asset Value 18.913.19-3.992.13
Borrowings  Long Term483.39545.05539.0640.93
– Short Term709.62394.23798.42786.43
Post issue Share Capital1205.00
FV10
IPO price54
EPS FY221.25
PE Fy2243.22
EPS Fy233 (ann)7.45
PE Fy23 (ann)7.25
Market cap in Lacs6507
Market Cap/sales  (ann)13.01
sales cagr (fy20-23)301%

Salient Points

  • There is increased demand for packaging solutions as the global packaging industry is expected to grow at a CAGR of 4.5% from 2022 to 2027. This growth is being driven by the increasing demand for packaged goods in emerging markets, such as India and China.
  • Krishca Strapping Solutions Ltd. is expanding its product portfolio to meet the growing demand for packaging solutions.
  • The company is also investing in research and development to develop new and innovative products.
  • Krishca Strapping Solutions Ltd. is expanding its geographic reach to new markets. The company is targeting emerging markets, such as Asia and Africa, where there is a growing demand for packaging solutions.
  • Krishca Strapping Solutions Ltd. is increasing its focus on sustainability. The company is using sustainable materials in its products and is working to reduce its environmental impact.
  • Krishca Strapping Solutions Ltd is planning to expand its manufacturing facilities and plans invest Rs. 10 crore in the expansion project.
  • The expansion project will include the construction of a new manufacturing plant. The new plant will be located in the same premises as the existing plant. The new machinery will be used to produce a wider range of products. The expansion project is expected to be completed in the next two years.
  • Krishca Strapping Solutions Ltd witnessed high growth in revenues and profits in FY23 which appears to be due to increase in demand for strapping solutions in increased in recent years. This is also partly due to the growth of the e-commerce industry and the need for more efficient ways to package and transport goods. further growth in revenues has been aided by improved product offerings and increased geographic reach. It has started exports in fy21-22 and there is good trend though numbers are small overall. The company exports its products to a number of countries, including the United States, Europe, and Asia.
  • The company has a strong presence in the eastern and central parts of India. It is also expanding its presence in the southern and western parts of India.
  • It has availed term loans from Indian Bank and CSL Capital Private Limited.
  • A Comparison with the listed peers mentioned in its RHP is depicted below:
CompanyFVCMP INRSales Fy23*NPNPMPERONWMcap Mcap/sales
Krishca Strapping10547313.4918.6%7.250.81650.9
Usha Martin Ltd.12303,26835110.7%2018.8 7,0082.1
Metal Coatings India1010117221.2%39.58.6273.90.4
  • Its PE ratio is 43x (fy22 earnings)  and 7.45x (fy23 ). There has been a big jump in revenues and profits in FY22-23. Company appears to be on the growth path
  • I intend to apply in Krishca Strapping Solutions IPO.
  • SME IPO are more volatile and risky.
  • Share India Capital Services Private Limited is the lead manager to the issue as well as the market maker. Their recent issues handled by it were Dee Neer Tools, Quicktouch technologies. They had a good run on the bourses.
  • GMP as reported on social media has been inching up and may be more than Rs. 50.
  • Anchor issue; Familiar investor names in SME issues, Rajasthan Global securities pvt Ltd (79% allocation). and Saint capital fund(21% allocation) were allotted shares in the anchor issue.
  • Please do your own diligence as SME IPOs are more volatile and risky than mainboard IPOs and need more funds.

  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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