Kamdhenu Ltd

- Kamdhenu Limited is raising INR 100 crores through the issue of convertible warrants on a preferential basis over the next 18 months. - So far, INR 24.27 crores have already been received from this fundraising. - The capital raise aims to remodel the franchisee business by acquiring stakes in some franchisee units. - Funds will also be used for investing in existing and new business ventures in India or overseas for diversification. - Additional planned uses include CapEx in existing manufacturing units, acquiring or setting up new office premises, and enhancing brand positioning to leverage overall brand premium. - No specific mention of new debt fundraising was made; the company continues to remain debt-free as of March 31, 2024.

- Kamdhenu Limited is raising INR 100 crores through the issue of convertible warrants on a preferential basis over the next 18 months, with INR 24.27 crores already received. - The raised funds will be deployed to remodel the franchisee business by strategically acquiring stakes in some franchisee units. - Investment will also be made in existing and new business ventures in India and overseas for diversification. - CapEx plans include investments in existing manufacturing units and acquiring or setting up new office premises. - The company plans to enhance and strengthen its brand position and corporate image to leverage brand premium. - Specifically, for Q1 FY '25, the company expects to deploy INR 25 crores of cash raised recently. - For setting up a greenfield TMT bar capacity of 1 lakh metric tonnes annually (though not viable), CapEx is estimated at INR 70-80 crores excluding land; a capacity of 2 lakh metric tonnes requires about INR 70-80 crores excluding land. - Overall, capital spending will support capacity expansion, strategic acquisitions, and brand-building initiatives.

- Kamdhenu Limited targets doubling steel business revenue in the next 5 years, increasing franchisee steel volume from 32.5 lakh MT in FY '24 to 68 lakh MT by FY 2029. - They aim to raise franchisee capacity from current ~41 lakh MT to 50 lakh MT in FY '25. - Expected steel industry growth is 8%-9% annually, but Kamdhenu plans to grow at 16%-17%, outpacing the industry. - Paint business revenue expected to grow from INR 292 crores in FY '24 to around INR 380 crores in FY '25, with EBITDA margin improving from 8% to 9.5%. - The company focuses on value-added/premium products to drive both volume and value growth. - Expansion primarily through scaling capacity of existing franchisees, rather than increasing franchisee numbers. - Market expansion focus on Tier 2 and Tier 3 cities, smaller towns, and underserved regions.

- Kamdhenu Steel business targets to double revenue in next 5 years, increasing franchisee capacity from 41 lakh MT to 68 lakh MT by 2029. - EBITDA margin for paint business expected to improve from 8% in FY '24 to 9.5% in FY '25. - Paint business revenue targeted to grow over 20% in FY '25 from INR 292 crores in FY '24 to approximately INR 380 crores. - Steel business PBT grew 22% YoY in FY '24; aims to sustain and improve margins with royalty per tonne expected to increase from INR 395 to INR 500 over next 5 years. - Steel segment pursuing 16-17% annual volume growth, well above industry growth of 8-10%, contributing to substantial earnings growth. - Overall, Kamdhenu expects PAT and EBITDA growth backed by capacity expansion, improved realizations, cost control, and premium product focus.

- Kamdhenu Limited's franchisee units typically maintain a fully booked order book, with capacity utilization around 60-70%. - Steel segment capacity utilization is relatively moderate due to single-shift operations. - The asset-light franchisee model ensures steady demand and utilization among franchisees. - No specific numeric value for total pending orders or order book size disclosed. - Management indicated ongoing efforts to increase capacity, from current 41 lakh metric tonnes to 50 lakh metric tonnes in FY '25 and targeting 68 lakh metric tonnes by 2029. - The model supports continuous demand within a 200-300 km radius to minimize transportation costs, sustaining franchisee order levels.