The IPO would be used to sell around 3.75 million shares in a price band of 125 rupees to 150 rupees per share.
The Kiri Dyes IPO will open from March 25 to April 2, 2008
The money collected through the IPO would be used to set up a new business unit so as to ensure smooth supplies of raw material for the primary products of Kiri Dyes – namely, dyes intermediates.
The company is based in Ahmedabad. It manufactures dye intermediates that are widely used in textiles, paint and acrylics, leather and printing ink industries. Since it is a Gujarat based company, it has most of its customers who are in the business of textiles too based in Gujarat, making it easy for market penetration. Not only it has national clients, it also exports almost 50% of it production to overseas countries like Korea, Turkey, United States and Taiwan.
A portion of IPO proceeds will also be used for enhancing facilities at the existing units. The new unit to be setup will be producing sulphuric acid and oleum, key raw materials for dyes, with combined capacity of 1,80,000 metric tonnes per year.
Related: Should you apply for an IPO? & Review of Titagarh Wagon IPO
So in a nutshell, the company is looking for using IPO money to capitalize growth on existing platforms. Has a heavy dependency on the client industry sectors, so one needs to be careful about the downtrends in the industries like Textile and leather, which may lead to a downtrend for Kiri Dyes stock price as well.
| Not much of valuation information is available. So we cannot get any fair valuation of the IPO stock price. One will have to make a bet while applying for the Kiri Dyes IPO. | Table of Contents |
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