Shri Kanha Stainless Ltd. IPO Analysis

03 December 2025

Shri Kanha Stainless Limited is a family‑run company that manufactures precision cold‑rolled stainless steel strips and converts hot‑rolled coils into thin, ultra‑thin cold‑rolled coils for a variety of industries.It converts hot‑rolled (HR) coils into cold‑rolled (CR) coils and manufactures coils in standard sizes and thicknesses across grades 200, 300 and 400 from 0.08 mm to 2.0 mm. The products are used by downstream industries for flexible tubes, capillary tubes, textile machinery, automotive components, chemical equipment, clocks, watches and electrical equipment. 

Parameter	Details
Issue Type	100% Fresh Issue
Issue Size	INR 46.28 crores
Price Band	INR 90 per share
Lot Size	1600 shares
Net Issue	51,42,400 Shares
NII Portion	8,76,000 (47.48%) Shares
Market Makers	2,59,200 (5.04%) Shares
Retail Portion	8,76,000 (47.48%) Shares
Listing Platform	NSE SME
Issue Opens	December 3, 2025
Issue Closes	December 5, 2025
Listing Date	December 10, 2025

Now, let’s move to what’s working for the company and what’s not before moving onto their history and numbers.

Strengths	Risks
Specialised product portfolio: manufacture of thin and ultra‑thin cold‑rolled stainless‑steel strips in multiple grades and sizes, serving diverse industries.	They have expanded into new product categories while they had negative cash flows from operations from the past years. Sustained negative cash flow could impact their growth and business.
They have diversified end use of markets which include textiles, automotive, chemical, flexible tubing and consumer goods sectors..	They have no long term contracts, their sales depend on maintaining relationships with key customers; their top 3 customers contributed to about 54.34% of total revenue in FY2025.
EBITDA margins have expanded from about 4 % in FY 2022‑23 to nearly 10 % in FY 2024‑25, despite flat revenue growth, reflecting operational efficiencies and better cost control.	Heavy dependence on few suppliers, their top ten suppliers accounted for over 93 % of purchases in FY 2024‑25;
They are planning to increase capacity by installation of a 1150 mm 4‑Hi AGC reversible rolling machine that is expected to increase capacity by 2.5 times.	Their capacity utilization is quite low around 51–57 % over FY 2023‑25 and could remain low if demand doesn’t materialize.

Now let’s move forward to unpacking the whole business story and their numbers- 

 What the company does

Shri Kanha Stainless Limited was founded in 2015 by Mr. Jai Bhagwan Agarwal and Mr. Shashank Agrawal. They are a leading manufacturer of high-quality precision stainless steel cold rolled (CR) strips in India. Their vision is to offer premium stainless steel solutions, the company specializes in converting hot rolled (HR) coils into CR coils across grades 200, 300, and 400, in thicknesses ranging from 0.08mm to 2.00mm. They also offer slitting services for material 5mm and above, in both hard and soft form to various industries through their network of 40-50 dealers and traders. 

Industry Overview 

Market size - 

The DRHP doesn’t provide numeric market‑size figures for the stainless‑steel cold‑rolled strip industry but The India stainless steel market as a whole was valued at approximately USD 17billion in 2024 and is projected to grow to USD 25.40 billion by 2032. The Indian steel industry is classified into major producers, main producers and secondary producers, with Shri Kanha Stainless operating as a secondary producer.

Key trends and growth drivers -

• Steel demand is tightly linked to industrialisation and infrastructure growth.

• Cold‑rolled strips serve diverse applications across textiles, automobiles and consumer goods, so demand is driven by these downstream sectors.

• Shri Kanha Stainless plans to boost capacity with a new rolling machine, signalling expectations of growth in demand.

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