SK Minerals Unveils Rs 41-Crore SME IPO with Rs 120-127 Price Band
SK Minerals & Additives, a Ludhiana-based specialty chemicals manufacturer, is launching its IPO on the BSE SME platform to raise Rs 41.15 crore. The IPO price band is set at Rs 120-127 per share, with a subscription period from October 10-14, 2023. The company plans to use the funds primarily for working capital (Rs 31 crore) and plant and machinery purchases (Rs 5.05 crore). SK Minerals specializes in food and feed additives, serving various industries. The company reported revenue of Rs 211.67 crore and profit of Rs 10.94 crore in FY 2023.
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SK Minerals & Additives, a Ludhiana-based specialty chemicals manufacturer, has announced its initial public offering (IPO) on the BSE SME platform. The company aims to raise Rs 41.15 crore through the issuance of fresh equity shares. Here are the key details of the upcoming IPO:
IPO Details
| Particular | Details |
|---|---|
| Price Band | Rs 120 - 127 per equity share |
| Issue Size | 32.40 lakh fresh equity shares |
| Face Value | Rs 10 per share |
| Total Fund Raise | Rs 41.15 crore (at upper price band) |
| Subscription Period | October 10 - October 14, 2023 |
| Listing | BSE SME Platform |
Fund Utilization
The company has outlined the following plans for the IPO proceeds:
| Purpose | Amount (in Rs crore) |
|---|---|
| Working Capital | 31.00 |
| Plant and Machinery Purchases | 5.05 |
| General Corporate Purposes | Remainder |
Company Overview
SK Minerals & Additives specializes in manufacturing and trading specialty chemicals, with a focus on food and feed additives. Their product portfolio includes:
- Chelated minerals
- Mineral mixtures
These products cater to various industries, including:
- Food industry
- Bakery sector
- Animal feed industry
- Petroleum industry
Financial Performance
The company has demonstrated strong financial results:
| Period | Revenue (in Rs crore) | Profit (in Rs crore) |
|---|---|---|
| First 5 months (ended Aug 31, 2023) | 85.27 | 5.02 |
| FY 2023 | 211.67 | 10.94 |
IPO Management
- Book Running Lead Manager: Khambatta Securities
- Registrar: Maashitla Securities
This IPO presents an opportunity for investors interested in the specialty chemicals sector, particularly in the SME space. As always, potential investors should carefully review the company's financials, growth prospects, and risk factors before making an investment decision.
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