Shri Kanha Stainless
- Shri Kanha Stainless is coming out with an initial public offering (IPO) of 51,42,400 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 90 per equity share.
- The issue will open on December 03, 2025 and will close on December 05, 2025.
- The shares will be listed on SME Platform of NSE.
- The share is priced at 9.00 times higher to its face value of Rs 10.
- Book running lead manager to the issue is Kreo Capital.
- Compliance Officer for the issue is Arzoo Mantri.
Profile of the company
Shri Kanha Stainless is a manufacturer of precision stainless steel cold rolled strips, offering a wide range of thin and ultra-thin variants designed to meet diverse industrial requirements. The company’s products are widely used across various sectors including the textile, automotive, chemical industries, as well as in flexible tubes, capillary tubes, clocks, watches, and electrical equipment. With a strong focus on quality, innovation, and customer satisfaction, the company aims to be a profitable, value-driven, and ethically sound enterprise. It emphasizes understanding customer needs through clear communication, delivering exceptional service, and maintaining high ethical standards in all operations.
The company manufactures coils in the 200, 300, and 400 stainless steel series, with thicknesses ranging from 0.08 mm to 2.00 mm, and offers slitting from 5 mm and above in hard or soft form based on customer requirements. The plant has a production capacity of 14,000 MTPA and is committed to ensuring the welfare of its employees, stakeholders, and local communities.
The company is committed to a strategic growth trajectory aimed at strengthening its market position, enhancing operational efficiency, and maximizing stakeholder value. As part of this vision, the company has undertaken key initiatives to expand its production capabilities and improve its product offering. In line with this objective, the company has finalized a deal to import and install an 1150 mm 4-Hi AGC Reversible Rolling Machine from China. An advance payment of Rs 198.35 lakh has already been made toward the procurement of this machinery. This installation is expected to significantly enhance the company’s capacity utilization, increasing production capacity by 2.5 times compared to the current level and improve its product offering thereby contributing to stronger financial performance and profitability.
Proceed is being used for:
- Upgradation of existing manufacturing facility by installation of 1150 mm 4-Hi AGC Reversible Rolling Machine
- Repayment/pre-payment, in part, of certain secured and unsecured borrowing availed by the company
- Funding of working capital requirement of the company
- General corporate purposes
Industry Overview
One of the primary forces behind industrialization has been the use of metals. Steel has traditionally occupied a top spot among metals. Steel production and consumption are frequently seen as measures of a country's economic development because it is both a raw material and an intermediary product. India is the world’s second-largest producer of crude steel, with an output of 125.32 MT of crude steel and finished steel production of 121.29 MT in FY23. Meanwhile, a stainless steel sheet is a thin, flat piece of steel and is one of the fundamental forms of stainless steel used for metalworking. It can be cut and bent into various forms including strips, plates, and sheets of various shapes, thicknesses, and grades. These sheets are used in manufacturing various machinery, equipment, industrial components, irrigation pipes, greenhouse equipment, and other machines where corrosion poses a significant risk. They are also used in white goods because they are resistant to corrosion, can be easily fabricated, offer good mechanical properties over a wide range of temperatures, and can achieve diverse aesthetic finishes.
The most common applications of such sheets include consumer goods, household items, and fixtures. The high corrosion resistance property of stainless steel makes it a top choice for food, textile, manufacturing, chemical, construction, transportation, and aerospace industries. This alloy is majorly used in manufacturing sinks, coils in vaporizers, machinery parts, automobiles, screws, water filtration devices, food processing equipment, rockets, airplanes, chemical containers, dyeing equipment, heat exchangers, and other machines. In marine applications, 304 stainless steel is also used to make screws, bolts, nuts, and other fasteners. The various beneficial properties and versatility offered by stainless steel allow it to be used for a broad range of manufacturing applications. Due to its resistance to intergranular corrosion, which is a byproduct of welding or stress relieving process, it is extensively used for products that cannot use steel or other alloys.
The availability of internal and external substitute products, such as galvanized steel, engineered plastics, and aluminium will restrain the adoption of stainless steel sheets. Recently, the demand for aluminum has grown rapidly in the automotive and aerospace industries owing to its ultra-lightweight, cost-effective, and thermal conductivity characteristics. In addition, increasing preference for aluminum beverage cans can prompt manufacturers to opt for this metal due to its lightweight and malleable properties, making it a vital substitute. Hence, the increasing availability of substitutes will likely reduce the product adoption in various applications, such as consumer goods, engineering, electronics, and automotive. This factor is anticipated to restrain the market growth.
Pros and strengths
Manufacturing of low thickness up to 0.08 mm: Ultra-thin, precision stainless-steel production: The company specializes in manufacturing cold-rolled strips, sheets, coils, and circles, including ultra-thin products not commonly offered by competitors. Their focus on precision grades for dealer-cum-customers. The company manufactures coils in the 200, 300, and 400 stainless steel series, with thicknesses ranging from 0.08 mm to 2.00 mm, and offers slitting from 5 mm and above in hard or soft form based on dealer-cum-customer requirements.
Speed of machine is fast with high efficiency and productivity: Established operations with scale: Over 35 years of manufacturing heritage and served dealer-cum-customers with quality and assurance. The company is supported by around 80 employees. This scale highlights operational depth and broad market reach.
Low thickness is not manufactured by every player: The company’s ability to manufacture stainless steel strips with a minimum thickness of 0.08?mm is a notable operational strength that sets it apart in the industry. The size range of the company’s product portfolio spans thickness from 0.08?mm to 2.00?mm. This level of thinness and dimensional precision is made possible through advanced rolling mill technology, specifically the deployment of a 20 Hi Rolling Mill with AGC (Automatic Gauge Control). This equipment enables the company to maintain tight thickness tolerances, producing ultra-thin precision strips suited for high-end and niche industrial applications.
Risks and concerns
Dependence on Rajasthan exposes business to regional risks: The company has generated major sales from its customers situated at select geographical regions. The company has garnered 78.16%, 71.46%, 53.64% and 41.91% of its total revenue from the state of Rajasthan in the six-month period ended September 30, 2025, and Fiscals 2025, 2024 and 2023 respectively. Such geographical concentration of its business in these regions heightens its exposure to adverse developments related to competition, as well as economic and demographic changes in these regions which may adversely affect its business prospects, financial conditions and results of operations.
Revenue concentration among key clients: The company is engaged in the business of manufacturing of precision stainless steel cold rolled strips, offering a wide range of thin and ultra-thin variants designed to meet diverse industrial requirements. The company’s products are widely used across various sectors including the textile, automotive, chemical industries, as well as in flexible tubes, capillary tubes, clocks, watches, and electrical equipment. The company has garnered 83.01%, 82.52%, 78.83% and 76.41% of its total revenue from top 10 customers in the six-month period ended September 30, 2025, and Fiscals 2025, 2024 and 2023 respectively. Any decrease in revenues or sales from any one of its key customers may adversely affect its business and results of operations.
Dependence on limited raw material suppliers: The company is highly dependent on its raw materials and a few key suppliers who help it to procure the same. The company has procured 61.63%, 64.24%, 94.96% and 62.76% of its raw material from top 3 suppliers in the six-month period ended September 30, 2025, and Fiscals 2025, 2024 and 2023 respectively. In the event the company is unable to procure adequate amounts of raw materials, at competitive prices its business, results of operations and financial condition may be adversely affected.
Outlook
Shri Kanha Stainless specializes in the manufacturing of precision stainless steel cold rolled strips, offering a wide variety of thin and ultra-thin options to cater to diverse industrial needs. The company is a reputed private sector manufacturer of cold rolled stainless sections in India. The company has quality assurance and quality control of the products. On the concern side, the company is dependent on a few customers of its products, for a significant portion of its revenue, and any decrease in revenues or sales from any one of its key customers may adversely affect its business and results of operations. Moreover, the company generates its major portion of sales from its operations in certain geographical regions. Any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.
The company is coming out with an IPO of 51,42,400 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 90 per equity share to mobilize Rs 46.28 crore. On performance front, revenue from operations increased by 11.82%, rising from Rs 13,037.44 lakh in the financial year 2023-24 to Rs 14,579.11 lakh in the financial year 2024-25. This growth was primarily driven by higher product sales during the year. Moreover, profit after tax has increased by 122.47% from Rs 260.27 lakh for financial year 2023-2024 to Rs 579.05 lakh for financial year 2024-2025. The resultant effect was due to higher increase in revenues as compared to the expenses incurred during the year.
As part of its forward-looking strategy, the company is actively exploring new avenues for growth and diversification over the next three years. One of the key initiatives in this direction involves entering into the value-added product segment through precision rolling of Hot Rolled (HR) stainless steel coils to a thickness of 0.08 mm, which is primarily used in the manufacturing of shaving blades. This move will not only enable the company to cater to a high-demand niche market but also position it among a limited number of domestic players capable of producing stainless steel at such precision and quality. The entry into this specialized product segment is expected to significantly enhance sales volume, broaden the customer base, and drive an increase in overall production capacity. Moreover, it will boost capacity utilization to approximately 90%, up from the current level of 50-60%, reflecting a substantial improvement in operational efficiency. This initiative aligns with the company’s objective of continuous innovation, market differentiation, and sustainable revenue growth.
