Kheria Autocomp Ltd IPO
Status: Upcoming
Overview
IPO date
17 Sept 2026 to 21 Sept 2026
Face value
₹ 10 per share
Price
₹ 96 to ₹101 per share
Issue Size
4,598,400 shares
(aggregating up to ₹ 46.44 Cr)
(aggregating up to ₹ 46.44 Cr)
Allotment Date
22 Sept 2026
Listing at
NSE
Issue type
Book Building - SME
Sector
Auto Ancillaries
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T&C*
Strengths vs Risks of Kheria Autocomp Ltd
Know the pros & cons
Strengths
- Experience-Driven Manufacturing Excellence.
- Strategically located manufacturing facilities.
- Technology-Enabled Manufacturing and Process Engineering Capabilities.
- Comprehensive In-House Testing and Quality Control Infrastructure.
- Efficient Raw Material Sourcing and Inventory Management.
- Long-Standing Customer Relationships.
- Green Energy and Sustainability Initiatives.
Risks
- We are dependent on Tier-I vendors, whose demand is directly linked to OEM procurement cycles. Any reduction or discontinuance of their demand may adversely affect our business, financial condition and results of operations.
- For our proposed new manufacturing facility, we are required to obtain certain statutory approvals, clearances, and permissions from the relevant authorities in connection with the planned capital expenditure. If we are unable to obtain such approvals in a timely manner, or at all, our proposed expansion may be delayed, which could adversely affect our business, results of operations, cash flows, and financial condition.
- A substantial portion of our revenue is derived from customers located in the state of Gujarat. Any adverse developments in this region may materially and adversely affect our business and results of operations.
- A significant portion of the Net Proceeds is proposed to be utilized towards funding our capital expenditure requirements including purchase of plant and machinery for our new manufacturing facility, for which certain orders have been placed. Any delay in procurement, delivery or installation of plant and machinery for our new manufacturing facility, including machinery for which purchase orders have been placed, may delay implementation, result in cost overruns and adversely affect our business operations and growth strategy.
- We are dependent on the supply of raw materials approved by our customers, and any disruption or delay in procurement of such materials could adversely impact our production schedules, result in idle capacity, and affect our relationship with customers.
- Any increase in raw material prices, volatility in supply or pricing, or failure by suppliers to fulfil their obligations may adversely impact our operations, financial performance, and business results.
- There have been instances of delayed filings in the past with certain Regulatory Authorities. If the Regulatory Authorities impose any monitory penalties on us or take any punitive actions against our Company in relation to the same, our business, financial condition and results of operations could be adversely affected.
- We are significantly dependent on the automotive sector, and any downturn or change in demand in this sector may adversely affect our business, financial condition and results of operations.
- Our cash flows from operating activities have fluctuated in the past and may continue to fluctuate due to changes in our working capital requirements. Any inability to generate sufficient cash flows from our operations may adversely affect our business, financial condition and results of operations.
- Our lenders have charge over our movable and immovable properties in respect of finance availed by us and settlement arrangements may affect perceptions of our credit profile.
- Mr. Basant Lal Kheria, who is deemed to be part of the Promoter Group under the SEBI ICDR Regulations, has not provided the requisite information, and our disclosure regarding him is based only on publicly available information.
- Our Company has in the past been non-compliant with certain provisions of the Companies Act, 1956 and the Companies Act, 2013, and may be subject to penalties for such non-compliances.
- Our operations are dependent on injection moulding machines and robotic systems procured from third-party manufacturers. Any failure, breakdown, obsolescence, delay in procurement of spare parts, or inability to adapt to newer technologies could adversely impact our business, financial condition and results of operations.
- We have experienced negative cash flows in the past. Any negative cash flows in the future would adversely affect our cash flow requirements, which may adversely affect our ability to operate our business and implement our growth plans, thereby affecting our financial condition.
- Our insurance coverage could prove inadequate to satisfy potential claims or protect us from potential operational hazards and losses which may have a material adverse effect on our business, results of operations and financial condition.
- Our Company is party to certain legal proceedings. Any adverse decision in such proceedings may have an adverse effect on our business, results of operations and financial condition.
- Our business is subject to stringent quality and certification standards, and any failure to maintain such certifications or comply with customer quality audits could result in loss of business, customer confidence and adversely affect our results of operations.
- We may be subject to industrial unrest and increased employee costs, which may adversely affect our business and results of operations.
- Certain educational qualification documents of some of our Promoters are currently not traceable.
- Our past performance may not be indicative of our future growth. An inability to effectively manage our growth and expansion may have a material adverse effect on our business prospects and future financial performance.
- Our financing agreements impose certain restrictions on our operations, and our failure to comply with operational and financial covenants may adversely affect our business and financial condition.
- Delays in the schedule of implementation of our proposed new manufacturing unit may adversely affect our business operations and financial results.
- Our Promoters/Directors have provided personal guarantees for loan facilities obtained by our Company, and any failure or default by our Company to repay such loans in accordance with the terms and conditions of the financing documents could trigger repayment obligations on them, which may impact their ability to effectively service their obligations as our Promoters/Directors and thereby, impact our business and operations.
- Excess rate of attrition amongst the personnel engaged by our Company may have an adverse impact on our business operations.
- Our business is subject to seasonality, which may contribute to fluctuations in our results of operations and financial condition.
- We may not be successful in improving inadequacies in our information and reporting systems.
- We are dependent on our manufacturing unit and any disruption, slowdown or shutdown of our manufacturing units may restrict our operations and adversely affect our business and financial condition.
- The identical number of years of experience disclosed for certain members of our management may be perceived as unusual and could adversely affect investor perception.".
- We are required to obtain and maintain statutory and regulatory approvals for our business and manufacturing operations, and any delay or failure in obtaining or renewing them may adversely affect our business.
- We are dependent on third parties for the supply of utilities such as Power and fuel, and any disruption in the supply of such utilities could adversely affect our manufacturing operations.
- We have long-standing relationships with our suppliers. However, we have not entered into any long term contracts with our suppliers for our raw materials and an increase in the cost of, or a shortfall in the availability of such raw materials or our inability to leverage existing or new relationships with our suppliers could have an adverse effect on our business and results of operations.
- Rapid technological changes in the electric vehicle ("EV") segment may require us to adapt our products and capabilities, and failure to do so could adversely affect our business.
- Our Company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on our Company's financial condition and results of operations.
- Certain sections of this Red Herring Prospectus contain information from D&B Report, which has been commissioned and paid for by our Company and any reliance on such information for making an investment decision in the Issue is subject to inherent risks.
- Our agreements with Tier-I customers impose obligations relating to quality standards, timely delivery, and defect liability, and any failure to meet such obligations may impact our business operations.
- Any non-compliance by our Company with changes in, safety, health and environmental legislations and other applicable laws, may adversely affect our business, results of operations and financial condition.
- We could incur losses under our purchase orders with our customers or be subjected to disputes or contractual penalties as a result of delays in delivery or failures to meet product specifications or delivery schedules, which may have a material adverse effect on our business, results of operations, cash flows, and financial condition.
- Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior Shareholders' approval.
- Our funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency and our management will have broad discretion over the use of the Net Proceeds.
- The Company is exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact business, financial condition, cash flows and results of operations.
- We have availed unsecured loans that may be recalled at any time. Our Company has availed unsecured loans which are repayable on demand. Any demand from lender(s) for repayment of such unsecured loans, may adversely affect our cash flows.
- Our registered office cum factory premises from where we conduct our manufacturing and administrative operations is not owned by us and is on lease.
- Promoters and Directors hold Equity Shares in Company and are therefore interested in Company's performance in addition to their remuneration and reimbursement of expenses.
- Our Promoters will be able to exercise significant influence and control over us after the Issue and may have interests that are different from or conflict with those of our other shareholders.
- Our application for registration of our logo has been accepted and advertised in the Trade Marks Journal, but registration has not yet been granted. Any opposition to the application or failure to obtain registration could adversely affect our ability to protect and exclusively use our logo.
- Our inability to accurately forecast demand for our products and manage our inventory may have an adverse effect on our business, financial condition, results of operations and cash flows.
- Our manufacturing operations are concentrated in a single geographic region, and any adverse developments in this region, or inability to competitively serve other regions, could disrupt our business operations and adversely affect our financial performance
- We may not be able to prevent unauthorised use of trademarks obtained/ applied for by third parties, which may lead to the dilution of our goodwill. Failure to secure and protect our intellectual property exposes us to infringement, imitation, legal disputes, and potential loss of market share.
- Any adverse change in regulations governing our products, may adversely impact our business prospects and results of operations.
- There is no guarantee that the company's Equity Shares will be listed on the Emerge Platform of National Stock Exchange of India Limited in a timely manner or at all.
- If the company fails to maintain an effective system of internal controls, its may not be able to successfully manage or accurately report the company's financial risk.
- The weighted average cost of acquisition of Equity Shares held by the company's Promoters could be lower than the Issue Price.
- Reliance on third-party transportation providers for finished goods and the potential impact of transportation disruption.
- Safety protocols and programs are developed, implemented and improved. A significant disruption at the company's manufacturing facilities may adversely affect production schedules, costs, sales and ability to meet customer demand.
- Technology failures could disrupt operations and adversely affect business operations and financial performance.
- The Company has not paid any dividends in the past and its may not be able to pay dividends in the future.
- The Company's future funding requirements, in the form of further issue of capital or other securities and/or loans taken by the company, may turn out to be prejudicial to the interest of the shareholders depending upon the terms and conditions on which they are raised.
- The company's success depends heavily upon its Promoter, Directors and Key Managerial Personnel for their continuing services, strategic guidance and financial support who are also the natural person in control of the Company.
- The Company may undertake acquisitions, investments, joint ventures or other strategic alliances, which may have a material adverse effect on ability to manage business, and such undertakings may be unsuccessful.
- Certain data mentioned in this Red Herring Prospectus has not been independently verified.
- The company has not made any alternate arrangements in order to meet its capital requirements for the Objects of the Issue.
- Ability to access capital at attractive costs depends on credit ratings. Non-availability of credit ratings or a poor rating may restrict access to capital and thereby adversely affect business, financial conditions, cash flows and results of operations.
- Inability to collect receivables from customers or default in payment by them could result in the reduction of profits and affect cash flows.
- The requirements of being a public listed company may strain its resources and impose additional requirements.
- The Company may not be able to identify or effectively respond to evolving preferences, expectations or trends in a timely manner and a failures to derives the desired benefits from product development efforts may impact competitiveness and profitability.
- Failures to successfully implement the company's business strategies may materially and adversely affect its business, prospects, financial condition and results of operations.
- Any increase in interest rates would have an adverse effect on its results of operations and will expose the Company to interest rate risks.
- The company's management will have broad discretion in how its apply the Net Proceeds, including interim use of the Net Proceeds, and there is no assurance that the objects of the Issue will be achieved within the time frame expected or at all, or that the deployment of the Net Proceeds in the manner intended by the company will result in any increase in the value of your investment.
- The company's Promoters, Directors including Independent Directors, does not have any prior experience of directorship in the listed company.
- The deployment of funds raised through this Issue are based on the company's management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at the company's discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".
- The company may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy the company's capital needs, which its may not be able to procure and any future equity offerings by the company.
- Increased losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on the company.
- The company is subject to governmental regulation, and its may incur material liabilities under, or costs in order to comply with, existing or future laws and regulations and the company's failures to comply may result in enforcements, recalls, and other adverse actions.
- Subsequent to the listing of the Equity Shares, its may be subject to surveillance measures, such as the Additional Surveillance Measures and the Graded Surveillance Measures by the Stock Exchanges in order to enhance the integrity of the market and safeguard the interest of investors.
- The Equity Shares have never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.
- The investors may not be able to sell immediately on an Indian stock exchange any of the Equity Shares they acquire in the Issue, in case of delay in receipt of Listing and Trading approval.
- The Issue price of the company's Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of the company's Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
- There are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a shareholder's ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.
- Any future issuance of Equity Shares, or convertible securities or other equity linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoter or members of the company's Promoter Group may adversely affect the trading price of the Equity Shares.
- Fluctuation in the exchange rate between the Indian Rupee and foreign currencies may have an adverse effect on the value of the company's Equity Shares, independent of its operating results.
- Foreign investors are subject to foreign investment restrictions under Indian law that limits the company's ability to attract foreign investors, which may adversely impact the market price of the Equity Shares.
- You may be subject to Indian taxes arising out of capital gains on sale of Equity Shares.
- Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
- QIB and Non-Institutional Investors are not permitted to withdraw or lower their application (in terms of quantity of Equity Shares or the Application Amount) at any stage after submitting an application.
- The Issue Price, market capitalization to total revenue multiple and price to earnings ratio based on the Issue Price of the Company, may not be indicative of the market price of the Equity Shares on listing or thereafter.
Kheria Autocomp Ltd Peer Comparison
Understand the company’s industry standing
Kheria Autocomp Ltd
Machino Plastics Ltd
PPAP Automotive Ltd
Face Value
10
10
10
Standalone / Consolidated
Standalone
Consolidated
Consolidated
Total Income Rs. Cr.
120.01
492.16
567.05
EPS-Basis
10.15
2.16
30.61
EPS-Diluted
---
---
---
NAV Per Share
35.13
163.18
222.82
P/E-Basic EPS
---
104.31
5.82
P/E-Diluted EPS
---
---
---
RONW(%)
33.72
1.32
13.73
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 17 Sept 2026 & closes on 21 Sept 2026.
Kheria Autocomp Limited was originally incorporated as 'Company Limited by Shares' on November 12, 2009 with the Registrar of Companies, Ahmedabad. Company is an auto ancillary unit engaged in the business of plastic injection moulding. It specialise in the manufacture of plastic injection moulding sub-assembly operations and supplying primarily to the automotive sector. In earlier years, the Company also catered to the white goods segment; however, present focus is on manufacture of automotive plastic moulded parts.
Apart from this, the Company operate as a Tier-II supplier, producing moulded plastic components in accordance with the specifications of Tier-I vendors, who in turn supply to original equipment manufacturers (OEMs) in the passenger vehicle categories. The product range includes interior cabin trims, exterior plastic parts, under-hood components, and heating, ventilation and air-conditioning (HVAC) ducts. These products are supplied for internal combustion engine and electric vehicles. In addition to component production, it undertake basic sub-assembly operations, such as bolt assembly or the fitting of inserts, wherever required by customers. These activities support integration of the moulded components into larger assemblies at the Tier-I level.
The manufacturing facility is situated within the Tata Vendor Park at Sanand, Gujarat, with 30 injection moulding machines with capacities ranging from 120 tons to 1,700 tons. The Company launched automation into manufacturing plant, through installation of Robots in FY 2021. As on FY25, the installed capacity of the manufacturing unit is 4,200 MTPA. The Company has progressively adopted automation, including the installation of multiple robotic systems, to enhance consistency in production.
Company is planning the initial public offer of issuing 46,00,000 equity shares of face value Rs 10 each through fresh issue.
Kheria Autocomp Ltd IPO will close on 21 Sept 2026.
- Experience-Driven Manufacturing Excellence.
- Strategically located manufacturing facilities.
- Technology-Enabled Manufacturing and Process Engineering Capabilities.
- Comprehensive In-House Testing and Quality Control Infrastructure.
- Efficient Raw Material Sourcing and Inventory Management.
- Long-Standing Customer Relationships.
- Green Energy and Sustainability Initiatives.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Santosh Devi Kheria | 3410250 | 30.31 | 3410250 | 21.52 |
| 2 | Sushma Kheria | 2482250 | 22.06 | 2482250 | 15.66 |
| 3 | Tara Chand Kheria | 2214500 | 19.68 | 2214500 | 13.97 |
| 4 | Vinay Kheria | 2010250 | 17.87 | 2010250 | 12.68 |
| 5 | Vinay Kheria HUF | 1027500 | 9.13 | 1027500 | 6.48 |
| 6 | Varun Kheria | 105000 | 0.93 | 105000 | 0.66 |
| 7 | Tara Chand Kheria HUF | 250 | --- | 250 | --- |
- We are dependent on Tier-I vendors, whose demand is directly linked to OEM procurement cycles. Any reduction or discontinuance of their demand may adversely affect our business, financial condition and results of operations.
- For our proposed new manufacturing facility, we are required to obtain certain statutory approvals, clearances, and permissions from the relevant authorities in connection with the planned capital expenditure. If we are unable to obtain such approvals in a timely manner, or at all, our proposed expansion may be delayed, which could adversely affect our business, results of operations, cash flows, and financial condition.
- A substantial portion of our revenue is derived from customers located in the state of Gujarat. Any adverse developments in this region may materially and adversely affect our business and results of operations.
- A significant portion of the Net Proceeds is proposed to be utilized towards funding our capital expenditure requirements including purchase of plant and machinery for our new manufacturing facility, for which certain orders have been placed. Any delay in procurement, delivery or installation of plant and machinery for our new manufacturing facility, including machinery for which purchase orders have been placed, may delay implementation, result in cost overruns and adversely affect our business operations and growth strategy.
- We are dependent on the supply of raw materials approved by our customers, and any disruption or delay in procurement of such materials could adversely impact our production schedules, result in idle capacity, and affect our relationship with customers.
- Any increase in raw material prices, volatility in supply or pricing, or failure by suppliers to fulfil their obligations may adversely impact our operations, financial performance, and business results.
- There have been instances of delayed filings in the past with certain Regulatory Authorities. If the Regulatory Authorities impose any monitory penalties on us or take any punitive actions against our Company in relation to the same, our business, financial condition and results of operations could be adversely affected.
- We are significantly dependent on the automotive sector, and any downturn or change in demand in this sector may adversely affect our business, financial condition and results of operations.
- Our cash flows from operating activities have fluctuated in the past and may continue to fluctuate due to changes in our working capital requirements. Any inability to generate sufficient cash flows from our operations may adversely affect our business, financial condition and results of operations.
- Our lenders have charge over our movable and immovable properties in respect of finance availed by us and settlement arrangements may affect perceptions of our credit profile.
- Mr. Basant Lal Kheria, who is deemed to be part of the Promoter Group under the SEBI ICDR Regulations, has not provided the requisite information, and our disclosure regarding him is based only on publicly available information.
- Our Company has in the past been non-compliant with certain provisions of the Companies Act, 1956 and the Companies Act, 2013, and may be subject to penalties for such non-compliances.
- Our operations are dependent on injection moulding machines and robotic systems procured from third-party manufacturers. Any failure, breakdown, obsolescence, delay in procurement of spare parts, or inability to adapt to newer technologies could adversely impact our business, financial condition and results of operations.
- We have experienced negative cash flows in the past. Any negative cash flows in the future would adversely affect our cash flow requirements, which may adversely affect our ability to operate our business and implement our growth plans, thereby affecting our financial condition.
- Our insurance coverage could prove inadequate to satisfy potential claims or protect us from potential operational hazards and losses which may have a material adverse effect on our business, results of operations and financial condition.
- Our Company is party to certain legal proceedings. Any adverse decision in such proceedings may have an adverse effect on our business, results of operations and financial condition.
- Our business is subject to stringent quality and certification standards, and any failure to maintain such certifications or comply with customer quality audits could result in loss of business, customer confidence and adversely affect our results of operations.
- We may be subject to industrial unrest and increased employee costs, which may adversely affect our business and results of operations.
- Certain educational qualification documents of some of our Promoters are currently not traceable.
- Our past performance may not be indicative of our future growth. An inability to effectively manage our growth and expansion may have a material adverse effect on our business prospects and future financial performance.
- Our financing agreements impose certain restrictions on our operations, and our failure to comply with operational and financial covenants may adversely affect our business and financial condition.
- Delays in the schedule of implementation of our proposed new manufacturing unit may adversely affect our business operations and financial results.
- Our Promoters/Directors have provided personal guarantees for loan facilities obtained by our Company, and any failure or default by our Company to repay such loans in accordance with the terms and conditions of the financing documents could trigger repayment obligations on them, which may impact their ability to effectively service their obligations as our Promoters/Directors and thereby, impact our business and operations.
- Excess rate of attrition amongst the personnel engaged by our Company may have an adverse impact on our business operations.
- Our business is subject to seasonality, which may contribute to fluctuations in our results of operations and financial condition.
- We may not be successful in improving inadequacies in our information and reporting systems.
- We are dependent on our manufacturing unit and any disruption, slowdown or shutdown of our manufacturing units may restrict our operations and adversely affect our business and financial condition.
- The identical number of years of experience disclosed for certain members of our management may be perceived as unusual and could adversely affect investor perception.".
- We are required to obtain and maintain statutory and regulatory approvals for our business and manufacturing operations, and any delay or failure in obtaining or renewing them may adversely affect our business.
- We are dependent on third parties for the supply of utilities such as Power and fuel, and any disruption in the supply of such utilities could adversely affect our manufacturing operations.
- We have long-standing relationships with our suppliers. However, we have not entered into any long term contracts with our suppliers for our raw materials and an increase in the cost of, or a shortfall in the availability of such raw materials or our inability to leverage existing or new relationships with our suppliers could have an adverse effect on our business and results of operations.
- Rapid technological changes in the electric vehicle ("EV") segment may require us to adapt our products and capabilities, and failure to do so could adversely affect our business.
- Our Company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on our Company's financial condition and results of operations.
- Certain sections of this Red Herring Prospectus contain information from D&B Report, which has been commissioned and paid for by our Company and any reliance on such information for making an investment decision in the Issue is subject to inherent risks.
- Our agreements with Tier-I customers impose obligations relating to quality standards, timely delivery, and defect liability, and any failure to meet such obligations may impact our business operations.
- Any non-compliance by our Company with changes in, safety, health and environmental legislations and other applicable laws, may adversely affect our business, results of operations and financial condition.
- We could incur losses under our purchase orders with our customers or be subjected to disputes or contractual penalties as a result of delays in delivery or failures to meet product specifications or delivery schedules, which may have a material adverse effect on our business, results of operations, cash flows, and financial condition.
- Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior Shareholders' approval.
- Our funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency and our management will have broad discretion over the use of the Net Proceeds.
- The Company is exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact business, financial condition, cash flows and results of operations.
- We have availed unsecured loans that may be recalled at any time. Our Company has availed unsecured loans which are repayable on demand. Any demand from lender(s) for repayment of such unsecured loans, may adversely affect our cash flows.
- Our registered office cum factory premises from where we conduct our manufacturing and administrative operations is not owned by us and is on lease.
- Promoters and Directors hold Equity Shares in Company and are therefore interested in Company's performance in addition to their remuneration and reimbursement of expenses.
- Our Promoters will be able to exercise significant influence and control over us after the Issue and may have interests that are different from or conflict with those of our other shareholders.
- Our application for registration of our logo has been accepted and advertised in the Trade Marks Journal, but registration has not yet been granted. Any opposition to the application or failure to obtain registration could adversely affect our ability to protect and exclusively use our logo.
- Our inability to accurately forecast demand for our products and manage our inventory may have an adverse effect on our business, financial condition, results of operations and cash flows.
- Our manufacturing operations are concentrated in a single geographic region, and any adverse developments in this region, or inability to competitively serve other regions, could disrupt our business operations and adversely affect our financial performance
- We may not be able to prevent unauthorised use of trademarks obtained/ applied for by third parties, which may lead to the dilution of our goodwill. Failure to secure and protect our intellectual property exposes us to infringement, imitation, legal disputes, and potential loss of market share.
- Any adverse change in regulations governing our products, may adversely impact our business prospects and results of operations.
- There is no guarantee that the company's Equity Shares will be listed on the Emerge Platform of National Stock Exchange of India Limited in a timely manner or at all.
- If the company fails to maintain an effective system of internal controls, its may not be able to successfully manage or accurately report the company's financial risk.
- The weighted average cost of acquisition of Equity Shares held by the company's Promoters could be lower than the Issue Price.
- Reliance on third-party transportation providers for finished goods and the potential impact of transportation disruption.
- Safety protocols and programs are developed, implemented and improved. A significant disruption at the company's manufacturing facilities may adversely affect production schedules, costs, sales and ability to meet customer demand.
- Technology failures could disrupt operations and adversely affect business operations and financial performance.
- The Company has not paid any dividends in the past and its may not be able to pay dividends in the future.
- The Company's future funding requirements, in the form of further issue of capital or other securities and/or loans taken by the company, may turn out to be prejudicial to the interest of the shareholders depending upon the terms and conditions on which they are raised.
- The company's success depends heavily upon its Promoter, Directors and Key Managerial Personnel for their continuing services, strategic guidance and financial support who are also the natural person in control of the Company.
- The Company may undertake acquisitions, investments, joint ventures or other strategic alliances, which may have a material adverse effect on ability to manage business, and such undertakings may be unsuccessful.
- Certain data mentioned in this Red Herring Prospectus has not been independently verified.
- The company has not made any alternate arrangements in order to meet its capital requirements for the Objects of the Issue.
- Ability to access capital at attractive costs depends on credit ratings. Non-availability of credit ratings or a poor rating may restrict access to capital and thereby adversely affect business, financial conditions, cash flows and results of operations.
- Inability to collect receivables from customers or default in payment by them could result in the reduction of profits and affect cash flows.
- The requirements of being a public listed company may strain its resources and impose additional requirements.
- The Company may not be able to identify or effectively respond to evolving preferences, expectations or trends in a timely manner and a failures to derives the desired benefits from product development efforts may impact competitiveness and profitability.
- Failures to successfully implement the company's business strategies may materially and adversely affect its business, prospects, financial condition and results of operations.
- Any increase in interest rates would have an adverse effect on its results of operations and will expose the Company to interest rate risks.
- The company's management will have broad discretion in how its apply the Net Proceeds, including interim use of the Net Proceeds, and there is no assurance that the objects of the Issue will be achieved within the time frame expected or at all, or that the deployment of the Net Proceeds in the manner intended by the company will result in any increase in the value of your investment.
- The company's Promoters, Directors including Independent Directors, does not have any prior experience of directorship in the listed company.
- The deployment of funds raised through this Issue are based on the company's management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at the company's discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".
- The company may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy the company's capital needs, which its may not be able to procure and any future equity offerings by the company.
- Increased losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on the company.
- The company is subject to governmental regulation, and its may incur material liabilities under, or costs in order to comply with, existing or future laws and regulations and the company's failures to comply may result in enforcements, recalls, and other adverse actions.
- Subsequent to the listing of the Equity Shares, its may be subject to surveillance measures, such as the Additional Surveillance Measures and the Graded Surveillance Measures by the Stock Exchanges in order to enhance the integrity of the market and safeguard the interest of investors.
- The Equity Shares have never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.
- The investors may not be able to sell immediately on an Indian stock exchange any of the Equity Shares they acquire in the Issue, in case of delay in receipt of Listing and Trading approval.
- The Issue price of the company's Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of the company's Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
- There are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a shareholder's ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.
- Any future issuance of Equity Shares, or convertible securities or other equity linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoter or members of the company's Promoter Group may adversely affect the trading price of the Equity Shares.
- Fluctuation in the exchange rate between the Indian Rupee and foreign currencies may have an adverse effect on the value of the company's Equity Shares, independent of its operating results.
- Foreign investors are subject to foreign investment restrictions under Indian law that limits the company's ability to attract foreign investors, which may adversely impact the market price of the Equity Shares.
- You may be subject to Indian taxes arising out of capital gains on sale of Equity Shares.
- Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
- QIB and Non-Institutional Investors are not permitted to withdraw or lower their application (in terms of quantity of Equity Shares or the Application Amount) at any stage after submitting an application.
- The Issue Price, market capitalization to total revenue multiple and price to earnings ratio based on the Issue Price of the Company, may not be indicative of the market price of the Equity Shares on listing or thereafter.
The Issue type of Kheria Autocomp Ltd is Book Building - SME.
The minimum application for shares of Kheria Autocomp Ltd is 2400.
The total shares issue of Kheria Autocomp Ltd is 4598400.
Initial public offering of up to 45,98,400 equity shares of face value of Rs. 10/- each ("Equity Shares") of Kheria Autocomp Limited ("Kheria" or "the Company" or "the Issuer") for cash at a price of Rs. 96-101 per equity share (Including a Premium of Rs. 86-91 Per Equity Share) ("Issue Price") aggregating to Rs. [*] Crores comprising of fresh issue of up to 45,98,400 equity shares aggregating to Rs. 44.14-46.44 ("the Issue") of which up to 2,30,400 equity shares aggregating to Rs. 2.21-2.33 Crores will be reserved for subscription by market maker ("Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. issue of up to 43,68,000 equity shares of face value of Rs. 10/- each at an issue price of Rs. 96-101 per equity share aggregating to Rs. 41.93-44.12 Crores ("Net Issue"). The issue and the net issue will constitute 29.02% and 27.56% of the post-issue paid-up equity share capital of the company.
Price Band: Rs. 96 to Rs. 101 per equity share of face value of Rs. 10/- each.
The floor price is 9.60 times the face value of the equity shares and the cap price is 10.10 times the face value of the equity shares.
Bids can be made for a minimum of 2400 equity shares and in multiples of 1200 equity shares thereafter.