About the Company:
Krishna Defence and Allied Industries Ltd is engaged in the diversified business of manufacturing defence application products, dairy equipment products and kitchen equipments.
Company has entered into various licensing agreement with Defence Research and Development Organisation (“DRDO”) for obtaining the know-how and rights which enable company to manufacture and supply specialized defence application products for the Indian Armed Forces.
Under defence application, company provide a wide array of high performance products for naval applications and other utilities such as ship building steel bulb bar, special steel alloy bricks used as ballast weight for critical applications, super alloys weld consumables like welding wire, flux and electrodes, food container and improved space heating device etc
Company’s Manufacturing Facilities:
Company has two manufacturing facilities in Gujarat, located at Kalol and Halol district near Vadodara.
Company’s manufacturing facilities are accredited with ISO 9001:2015 quality management system as manufacturer and exporter of stainless-steel milk cans, milking machine, milk coolers, dairy and kitchen Equipment, milk testing Equipment, Galley Equipment, shipbuilding steel bulb bars, modular vehicle barrier & automatic tyre killer.
Company’s Customers:
Company derive most of the revenues under the contracts from the Government sectors (both central and state) and associated entities.
Dairy customer base includes:
- The Panchmahal District Co.operative Milk Producers’ Union Ltd.
- Hatsun Agro Products Limited.
- Delicia Foods India Pvt Ltd.
- Thanjavur Dist Co-Op Milk Prod. Un. Ltd (Aavin Federation).
- Amritsar Dist Co-Op Milk Prod Union Ltd (Verka Federation).
- Pune Zillha Sahakari Dudh Utpadak Sangh Limited (Katraj).
- Bihar State Milk Co-Operative Federation Ltd (COMFED) etc and various other milk cooperative societies in India.
Defence customer base includes:
- Ministry of Defence.
- Mazagaon Dock Shipbuilders Limited.
- Garden Reach Shipbuilders & Engineers Ltd.
- Goa Shipyard Limited.
Awards Received by the Company in Recent years:
In the Defence Expo 2020, company was handed over Transfer of Technology for Man Mounted cooling system by CM of UP, Shri Yogi Adityanath and then Defence minister, Shri Rajnath Singh and DRDO Chairman Dr. G. Satheesh.
Certificate Awarded by Naval Materials Research Laboratory DRDO, Ministry of Defence in Industry Partner Meet dated December 14, 2021 in Recognition of Outstanding Contribution and Valuable Support Towards Development of Innovative Materials and Energy Systems for Critical Naval Applications
Business of manufacturing Kitchen Equipment.
In the year 2010, company stretched the operations into the business of manufacturing Kitchen Equipment and commenced manufacturing of Bulk Cooking Equipment like Rice Cauldron, Dal Cauldron, Braising Pan, Distribution Vessels, Rice Chute and Dal Storage Tank.
These are used by organizations which run Midday Meal Programs where cooking is done for up to 1,00,000 meals a day. Presently company is supplying such products to The Akshayapatra Foundation.
Successfully developed Plastic Food Container:
Company has successfully developed the 5.5 ltrs Plastic Food Container, Improved Space heating device or Bukhari and Super alloys weld consumables like Welding Wire, flux and Electrodes and are ready to market the same.
Company is now in the stage of developing Man Mounted Cooling System, Solar Snow Melter, Improvised Explosive Device (IED) Containment Vessel and Mounting & support Equipment for Camouflage Net.
Received order from Indian Navy:
Company has received developmental order from Indian Navy for developing Super Alloy Weld Consumables which will be used in critical applications, wherein the delivery of first lot is expected to be completed in last quarter of this financial year.
Lately in the year 2021 company successfully developed and delivered the first order for Special Steel Alloy Bricks used as Ballast weight for critical applications of the Indian Navy.
Forayed in a new business vertical of manufacturing and marketing of Homeland & Security products:
In the year 2020 Company has also forayed in a new business vertical of manufacturing and marketing of Homeland & Security products, wherein company plan to manufacture products like Modular Vehicle Barrier, Automatic tyre Killer, Multi-purpose Launcher and Long Range LED Searchlight used by the Indian Armed Forces.
For which company has entered into agreements with foreign vendors for import of critical component required to manufacture/assemble these products in our factory. Company propose to sell such product under MAKE IN INDIA Program.
Management Team:
- Mr. Ankur Ashwin Shah (Designation: Managing Director)
- Mr. Sandeep Ramrao Kadam (Designation: Whole-time Director)
Objectives of the Issue:
Fresh Issue: (Rs.11.88 cr)
- To meet Working Capital requirements.
- General Corporate Purpose.
- To meet issue expenses.
Peer Group Comparison:
There are no listed companies in India that are engaged in a business similar to that of Krishna Defence and Allied Industries Ltd. accordingly it is not possible to provide an industry comparison in relation to the company.
Positives for the Company:
Offers a diversified range of products.
- Company is strategically well placed to run various business verticals under one umbrella.
- Company offer a wide range of products used in Defence industry for Indian Armed Forces, Dairy Equipment products to facilitate procurement, processing, distribution of milk, Kitchen Equipment Products to serve midday meals in large organizations and have also forayed into manufacturing of homeland security products to be used in defence industry for Indian Armed Forces.
Financials of the Company:
| (in Crores) | FY 19 | FY 20 | FY 21 | 30th Sept 21 |
|---|---|---|---|---|
| Revenue | 58.90 | 25.72 | 36.18 | 20.98 |
| Net Profit | 2.06 | 0.74 | 1.93 | 1.22 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 25th March 2022 |
| Issue Closes on:. | 29th March 2022 |
| Issue Price | Rs.37 – 39 |
| Face Value | Rs.10 |
| Minimum Lot | 3000 Shares |
| Minimum Investment | Rs.1,17,000 |
| Issue Constitutes | 26.62% |
| Issue Size | Rs.11.88 cr |
| Market Cap | Rs.44.64 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 30,48,000 (Rs.11.88 cr) |
| Equity Shares Prior to the Issue | 84,00,000 |
| Equity Shares after the issue | 1,14,48,000 |
Also Read : List of Upcoming IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 1st April 2022 |
| Initiation of Refunds | on or Before 4th April 2022 |
| Credit of Equity Shares: | on or Before 5th April 2022 |
| Listing Date: | on or Before 6th April 2022 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 2.31 | 16.88 | 10.74% | 21.46 |
| Company Contact Info: |
|---|
| Krishna Defence and Allied Industries Limited 344, Floor-3, Plot-267, A To Z Industrial Estate, Ganapatrao Kadam Marg, Lower Parel, Delisle Road, Mumbai 400013 India Tel. No: 022 4220 3800/99 E-mail: ankur@krishnaallied.com Website: www.krishnaallied.com |
