D.K. Enterprise Global Limited is engaged in making Paper-Based Packing materials, Self-Adhesive Tapes used for medical purposes, Adaptable Packaging and Laminated Products. The company is ISO certified. In addition, it has qualified the ISO 9001:2015, 45001:2018 standard guidelines. The company has good business relations with some MNC’s operating in India. Let’s have a look at D K Enterprises Global IPO details.
Their enlisted office with manufacturing center for Unit I is situated in Panchkula, Haryana. Unit II is at Vadodara, Gujarat. It is also planning to set up a new manufacturing center and office at Baddi, Himachal Pradesh. There manufacturing of Clear/Printed Bopp Tape, Masking/strength tapes and Laminated Products will be carried out. D.K. Enterprise Global Limited holds an 80% stake in association firm Satguru Engravures. It is engaged in Soap Stiffeners, Laminates, Soap Wrappers and Banding BOPP Tapes.
Objects of the IPO Issue:
- Prepayment of all or significant part of the loan on the company on a consolidated basis.
- To accomplish corporate targets.
Basis of the IPO Issue:
- Setting up of new Manufacturing Unit at Baddi, Himachal Pradesh
- To Meet Incremental Working Capital Requirements
- For General Corporate Purposes
- To meet Public Issue Expenses
| Name of the Person | Role of the Person in the company | Designation held in the company |
| Mr. Rakesh Kumar | Promoter | Chairman Cum Managing Director |
| Mrs. Rekha Bansal | Promoter | Whole Time Director |
| Mr. Dhruv Rakesh | Promoter | Executive Director |
| Mr. Jeenendra Prakash Singhvi | Director | |
| Mr. Khagesh Kaushal | Director | |
| Mr. Baljeet Singh | Chief Financial Officer | |
| Mrs. Amarpreet Kaur | Company Secretary |
Promoter and Other Key person of the Company
D K Enterprises Global IPO Details:
D.K. Enterprises Global Limited, a Panchkula-based company, has filled up its DRHP to SEBI. The company awaits SEBI approval to float its IPO in the market. The IPO includes the sale of 19,98,000 equity shares of Face Value Rs.10. The IPO issue price is around Rs.40 at a premium of Rs.30 from the face value.
The company hasn’t mentioned whether the IPO will be an OFS or a fresh issue of equity. The IPO size is 799.20 lakhs. The company has filed its IPO under the SME category. The IPO issue and the net issue will constitute 26.61% and 25.25% respectively of the post issue paid-up equity share capital of the company.
| IPO Opening Date | |
| Issue Type | Book Building Type |
| Issue Size | 19,98,000 Equity Shares |
| Issue Reserved for the Market Makers | Up to 1,02,000 Equity Shares aggregating up to Rs.40.80 Lakh |
| Net Issue to the Public | Up to 18,96,000 Equity Shares aggregating up to Rs.758.40 Lakh |
| Face Value | Rs 10/ equity share |
| IPO Issue Price | Rs 40 (expected price) |
| Listing At | NSE Emerge |
| Lot Size | |
| Minimum Order Quantity | |
| Maximum Order Quantity | |
| IPO Size | Rs 799.20 Lakh |
| Tick Size | 1 |
| Offer for Sale | |
| Fresh Issue | |
| Basis Of Allotment Date | |
| The Credit of shares in Demat Account | |
| Listing Date | |
| Net Issue to the Public | Up to 18,96,000 Equity Shares aggregating up to Rs.758.40 Lakh |
| Retail Investors Portion | 9,48,000 Equity Shares |
| Other than Retail Individual Investors | 9,48,000 Equity Shares |
| Equity Shares outstanding prior to the Issue | 55,10,000 Equity Shares |
| Equity Shares outstanding after the Issue | 7,508,000 Equity Shares |
Strengths Of D K Enterprises Global IPO:
- Experienced Promoters and supervisory director and management group
- The company has good business relations with some MNC’s. Their clients are Crompton Greaves Consumer Electrical Limited, Amul, Vodafone Idea, Patanjali Ayurvedic Limited, Godrej, Phone-pay, ITC, etc.
- The company has the perfect foundation and Integrated capacities to convey quality Products.
- Their most significant strength is their ability to provide customized packaging solutions to their clients.
- They have a diversified product portfolio which includes Self Adhesive Tapes, Laminated Products, Flexible Packaging and many more.
- The company has also achieved a quality assurance certification as per the Industrial Standards.
- D.K. Enterprises Global Limited plans the expand its product portfolio. They are also developing their manufacturing unit. It will increase their revenue and will reflect positivity in their operating margins.
- The organization has a well-established order book with the excellent customer base. It incorporates both government bodies and private players.
- The company has significantly reduced its debt and improved EBITDA and operating margins.
- They have a focused framework with customer experience.
- The company also enjoys the locational advantage aspect. It has good connectivity. All the offices and manufacturing centers are at places very the land rate is very high.
- An increase of 200% was reported in packaging consumption in India in FY21.
Weakness Of D K Enterprises Global IPO:
- The assembling and processing arm under the company’s brand is vulnerable to fluctuation in raw material costs.
- The inaccessibility of the raw material is also another primary concern for them. The company has no supply agreement on a long-term basis with any supplier.
- Their quality norms, competition and change associated with supply and demand can affect their business operation.
- D.K. Enterprises Global Limited requires many funds for working capital to proceed with development in the company. The failure to meet their prerequisites for operation will affect their business operation.
- The Manufacturing Unit, I and II capacity, is not entirely used in the past. In case of underutilization of the manufacturing units continue further, it will affect their growth. It will also affect the operating margins, revenue and financial ratios of the company.
- The company has a business model in which they work for their clients on a buy request premise. It does not have any long-term contracts or any associated tie-ups.
- The company doesn’t have the appropriate coverage of insurance. It can lead to a material adverse impact on the company’s business operation.
- Any changes in the law, guidelines and framework setup will influence their tasks and development possibilities.
- D.K. Enterprises Global Limited has some foreign clients. The company has faced challenges with these clients earlier also. The company needs to build up a strategy to execute the project with foreign clients properly.
- COVID-19 has significantly hampered their estimated operating margins and projects delivery.
- Their working capital requirements are supposed to remain high for FY22 and FY23.
- Their Balance sheet does not include the Current Maturity of Long-Term Borrowings.
Opportunities Of D K Enterprises Global IPO:
- The company has a diversified service portfolio.
- The company has also decided to grow its optimum efficiency. It will increase their operating margins and revenue.
- The company is setting up long-term contracts with many customers. It will provide revenue visibility.
- The company is also expanding its geographical market presence.
- D.K. Enterprise Global Limited is focusing on expanding the installed machinery at the Vadodara unit to manufacture Laminated Products, Clear/Printed Bopp Tape and Masking/specialty tapes.
- The company also plans to set up of new manufacturing facility at Baddi, Himachal Pradesh.
Other Threats Of D K Enterprises Global IPO:
- Their failure to prevent interferences in service could lead to a negative impact on their business.
- Strict compliance with laws and Guidelines. Along with renewing certain registration norms.
- Their business will be affected if they don’t execute their growth plan properly.
Financial Trends Of D K Enterprises Global IPO:
- An increase of 200% was reported in packaging consumption in India in FY21.
- The company’s total revenue into various segments: food processing packaging by 45%, pharmaceuticals packaging by 25%, and personal care products are packaging up to 10%.
- The company’s revenue will grow with a CAGR of 22%-24% YoY up to F.Y. 23.
- D.K. Enterprise Global Limited invested around 312.87 Lakhs in their associated firm M/s. Satguru Engravures. The company reported a turnover of Rs. 2,666.36 Lakhs. It also marked PAT of Rs. 90.28 Lakhs in FY21.
- The company registered a growth of 40% in their Basic and Diluted EPS. In FY20, it was around 4.22, while in F.Y. 21, it was 5.91.
- In FY21, the reported ROCE was 30.57%. The company marked one of the highest ROCE in its sector.
- The PAT of the company on a consolidated basis increased by 63.10% in FY21 from FY20. In FY21, it was Rs.243.86 Lakh, while in FY20, it was Rs.149.51 Lakh.
- D.K. Enterprise Global Limited registered a net sales growth of 43.43%. It also reported an increase of 43.49% in Core EBITDA Margins.
- The company has a debt/equity ratio of 0.97 in FY21. In FY20, it was 1.68 times. It signifies that the company has reduced its debt in terms of the equity it holds.
- The company has increased its total assets by 45.76% in FY21.
| Particulars | FY21 | FY20 |
| Share Capital | Rs. 275.50 Lakhs | Rs. 205.00 Lakhs |
| Net worth | Rs. 797.75 Lakhs | Rs. 327.18 Lakhs |
| Revenue from operations | Rs. 6,483.89 Lakhs | Rs. 4511.24 Lakhs |
| Total Expense | Rs. 6191.78 Lakhs | Rs. 4348.05 Lakhs |
| Profit Before Tax | Rs. 304.23 Lakhs | Rs. 207..83 Lakhs |
| Profit After Tax | Rs. 243.86 Lakhs | Rs. 149.51 Lakhs |
| Earnings Per Share – Basic & Diluted | Rs. 5.91 | Rs. 4.22 |
| Total Assets | Rs. 2,778.33 Lakhs | Rs. 1,906.05 Lakhs |
| EBIT Margin(%) | 5.98 | 6.03 |
| PAT Margin (%) | 3.73 | 3.31 |
| ROA(%) | 10.33 | 7.84 |
| ROE(%) | 42.49 | 45.44 |
Peer Competition:
| Face Value (Rs.) | P/E | EPS (Rs.) | Return on Net Worth (%) | Total Income (Rs. in Lakhs) | |
| DK Enterprises Global Limited | 10 | 5.85 | 6.83 | 30.31 | 6,483.89 |
| G.K.P. Printing & Packaging Limited | 10 | 27.52 | 1.09 | 3.59 | 2926.39 |
| Hindustan Adhesives Limited | 10 | 6.79 | 17.09 | 20.22 | 21,365.00 |
Address of the company:
Plot No-235 Industrial Area Phase-2
Panchkula Haryana 134109 India;
Telephone No.: +91 172 259 1548;
Web site: www.dkenterprises.co.in;
E-Mail: cs@dkenterprises.co.in
D K Enterprises Global IPO Lead Managers:
BEELINE BROKING LIMITED
SEBI Registration Number: INM000012546
Address: 807, Phoenix Tower, Opp. New Girish Cold Drinks,
Near Vijay Cross Roads, Navrangpura, Ahmedabad – 380 009
Telephone Number: +91 79 4840 5357
Email Id: mb@beelinemb.com
Investors Grievance Id: ig@beelinebroking.com
Website: www.beelinebroking.com
DK Enterprises IPO Registrar to offer:
SKYLINE FINANCIAL SERVICES PRIVATE LIMITED
SEBI Registration Number: INR000003241
Address: D-153A, 1st Floor, Okhla Industrial Area Phase-I, New
Delhi – 110020, India.
Tel. Number: +91 -11-40450193-97
Fax- +91-11-26812682
Email Id: compliances@skylinerta.com/virenr@skylinerta.com
Investors Grievance Id: grievances@skylinerta.com
Website: www.skylinerta.com
