Issue : 25 March 2022 – 29 March 2022
IPO Price ₹37 – ₹39 per equity share
Face Value ₹10 per equity share
IPO Size : ₹11.89 Cr.
Listing: NSE SME
Lot Size: 3000 Shares
- Krishna Defence and Allied Industries is engaged in developing, designing & manufacturing of
- Defense application products mainly catering to Indian Navy, Super alloy welding consumables, alloy bricks, Steel Bulb Bars for Naval Applications used as stiffeners in shipbuilding, Fused Flux for Shielding and high end applications etc.
- etc. Customers include Indian Navy, MOD, Mazagaon Dock, Garden Reach Shipbuilders, Goa Shipyard Limited etc.
- Home Land Security Products like Modular Vehicle Barrier, Automatic tyre Killer, Multi-purpose Launcher and Long Range LED Searchlight.
- Dairy: Products to facilitate procurement, processing, distribution of milk. Customers include Hatsun Agro, Panchmahal District Cooperative Milk Producers’, Delicia Foods India Pvt Ltd, Aavin Federation, Verka Federation etc.
- Mega kitchen verticals: Kitchen Equipment to serve midday meals in large organizations.
- Krishna Defence and Allied Industries has entered into various licensing agreements with DRDO for obtaining the know-how and rights which enable it to manufacture and supply specialized defence application products for Armed Forces.
- Manufacturing plants located at Kalol and Halol, Panchamahal District, Gujarat.
Financials:
| Item / Rs. in Cr. | FY 19 | FY 20 | FY 21 | HY22 |
|---|---|---|---|---|
| Revenue | 58.90 | 25.72 | 36.18 | 20.98 |
| Net Profit | 2.06 | 0.74 | 1.93 | 1.22 |
Considering the company operates in verticals with good potential and reasonable track record I am likely to put in some applications.
The Krishna Defence IPO allocation is 50% for QIBs, 15% for HNIs and 35% for Retail investors.
There are associated risks as SMEs being small issues acn be easily manipulated and Lot size is large which can result in large swings in profit or loss.