After a freeze in the IPO buzz, KN Agri Resources IPO is here to make the plot hot again. KN Agri Resources Limited (KNARL) was formerly known as Itarsi Oils and Flours Pvt. Ltd, until they changed it to its now known name in October 2021. KN Agri Resources engaged in the business of trading agriculture commodities and oil refining is here to raise INR 50 crore through its initial public offering on National Stock Exchange’s small and medium enterprise platform. As we look into the overall review of the company and the application process as a retail investor.
About KN Agri Resources Business
Itarsi Oils and Flours Pvt. Ltd established in 1987, an agri-based company engaged primarily in three businesses : solvent extraction, oil refining and trading of agriculture commodities.
KN Agri Resources Limited has all its bases in the central part of India (Madhya Pradesh & Chhattisgarh), providing an edge in terms of procurement and availability of raw material over its rivals. The company owns three seed processing units, two oil extracting refineries and one flour mill all spread across central India in a strategic manner.
The company has the capacity to produce over 370000 tonnes per annum in its solvent extraction business making it the most significant one in terms of capacity. While oil refineries have the capacity to produce 60000 tonnes per annum & 24000 tonnes per annum production capacity in flour mills.
KNARL has a network in both domestic and overseas market, exporting to countries like, Nepal, Bangladesh, Singapore & even Netherlands in Europe. KNARL is also adapting to the demands of green energy by outsourcing four wind energy power plants that have a combined production capacity of over 4.6MW. The employee size currently stands at 218.
KNARL Clients Network : Adani Wilmar, Cargill India, Bunge India and Ruchi Soya etc
IPO DETAILS : KN Agri Resource Limited
IPO ALERT🚨NSE SME Emerge IPO KN AGRI Resources Limited Details :
How to apply? Find out on: https://t.co/cBVzDEZzqE#NSESMEIPO #KNAGRI #KNARL #KNAGRIIPO pic.twitter.com/aEgBTUnlf8
— Sanely rich (@SanelyRich) March 16, 2022
KNARL is looking to raise INR 49.38cr for 26.33% of the company. The promoters pre-issue holding stands at 99.99%. After the IPO the promoters would still have large chunk of the company, 73.66%. The market lot size of KNARL is 1600 and a retail investor can apply for 1 lot which requires a capital of ₹120,000. In a total of 65,84,000 equity share KNARL has pledged at least 35% of the shares to retail investor.
Objectives Of The Funds Raised :
KNARL will use the money raised to meet the working capital requirements and corporate purposes.
Financials Of KN Agri Resource Limited :
Financials Of KN Agri Resources Limited
More on : https://t.co/cBVzDEZzqE#KNAGRIIPO #NSESMEIPO pic.twitter.com/3p5acycpSl
— Sanely rich (@SanelyRich) March 16, 2022
Should You Apply For KN Agri Resources IPO?
We believe it is priced at a very lucrative range of INR 71-75 in the FMCG segment. It cannot yet be compared to its peers but the lucrative value with profitable financials looks a safe bet. Investors can consider for both long term and short term gains in this IPO.
How To Apply For KN Agri Resources IPO?
The small and medium enterprise IPO is although not available on most of the broker platform such a Groww, Axis Direct etc. One can apply to KN Agri Resource IPO through Zerodha. The details on offline application is available here.
