Kataline Files DRHP with SEBI for IPO Comprising 86 Lakh Equity Shares

Nagpur-based integrated traffic safety solutions provider Kataline Limited has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to raise capital via an initial public offering (IPO).

The planned public offering consists of a fresh issue of up to 43,00,000 equity shares of face value ₹10 each and an offer for sale (OFS) of up to 43,00,000 equity shares by promoter selling shareholders Amit Arvind Thatte and Ketaki Amit Thatte. In addition, the company may explore a pre-IPO placement of up to 6,70,000 equity shares. If completed, the fresh issue component will be appropriately adjusted.

Utilization of IPO Proceeds

The net proceeds generated from the fresh issue will be deployed across core operational and expansion initiatives:

• Funding working capital requirements to support operational scaling
• Capital expenditure toward the upgrade and modernization of its manufacturing facility
• Capital expenditure for acquiring advanced project execution equipment
• Funding general corporate purposes

InCred Capital Financial Services Limited and Ashika Capital Limited are the book running lead managers for the issue, while KFin Technologies Limited will serve as the registrar. The equity shares are proposed to be listed on both the BSE and the National Stock Exchange of India (NSE).

Business Footprint and Infrastructure Focus

Incorporated in 2008, Kataline started operations as a specialized road-marking paint manufacturer and has transformed into an integrated player spanning manufacturing, quality testing, and turnkey project execution. Its product suite covers four primary verticals: hot-applied thermoplastic materials, cold-applied plastic materials, water- and solvent-based road safety marking paints, and road safety components and devices.

Hot-applied thermoplastics represent the core revenue driver for the company, accounting for 84.82% of revenue from operations in FY26. Outside domestic road infrastructure, Kataline has also homologated specialized racing circuit paint under FIA Standard 3503-2019, making it one of the few Asian manufacturers listed by the Fédération Internationale de l'Automobile for circuit coatings.

Over the past three financial years, the company has executed more than 60 projects with a value exceeding ₹50 lakh each across 24 states and union territories. Key flagship projects where Kataline’s materials and execution services have been deployed include:

• Samruddhi Mahamarg
• Delhi–Vadodara Expressway
• Eastern Peripheral Expressway
• Ganga Expressway
• Bundelkhand Expressway
• Purvanchal Expressway
• Raipur–Visakhapatnam Economic Corridor Expressway
• Chennai Peripheral Ring Road

Financial Trajectory

Kataline witnessed substantial operational expansion in the fiscal year ended March 31, 2026:

• Revenue from Operations: Grew 38.79% to ₹220.58 crore in FY26 from ₹158.93 crore in FY25.
• Profit After Tax (PAT): Restated net profit rose 61.15% to ₹26.83 crore compared to ₹16.65 crore in the preceding year.
• EBITDA: Increased to ₹36.26 crore from ₹24.46 crore, with EBITDA margins widening to 16.44% from 15.39%.
• Service Execution Revenue: Grew 92.68% year-on-year to ₹65.57 crore from ₹34.03 crore, reflecting increasing traction in turnkey contracting alongside material sales.

The company's public listing comes amid sustained capital expenditure by the central government on national highways, expressways, and urban transport networks, which continues to drive demand for road safety, lane demarcation, and specialized infrastructure coatings across India.

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