Shri Krishana mulls listing at the bourse
Shri Krishana Overseas has announced its intention to list by introduction on the Nairobi Securities Exchange (NSE) within the small and medium enterprises market segment.
According to Sonvir Singh, the company’s founder and managing director, the submission for the listing has been formally filed by their transaction advisors—Synesis Capital and MWC Legal. This move is aimed at setting the stage for future capital raising through the bourse.
“The listing is a strategic decision that will provide Shri Krishana Overseas with access to the capital markets, enabling us to raise funds and accelerate our expansion plans in the near future,” Singh stated.
Bearish market
If the Capital Markets Authority (CMA) approves the application, Shri Krishana Overseas will become the first packaging solutions company listed on the NSE. This listing would also mark the first new offering on the NSE since 2020.
This comes on back of a prolonged bear market and a dry spell in new listings at the NSE since the bourse’s self-listing in July 2014.
Experts say that high listing costs, increased taxes, and ongoing bearish conditions have discouraged many companies from going public.
Wycliffe Shamiah, CEO of the CMA, reported recently that over three firms, including Credit Bank, have shelved their plans to list due to the challenging market environment. Furthermore, the CMA has suspended trading in four companies and delisted five others. Recently, real estate firm Ilam Fahari I-Reit announced its intention to delist from the NSE.
Packaging sector
Despite these challenges, Shri Krishana Overseas’ listing is timely, given the increasing demand for packaging solutions in sectors such as manufacturing, floriculture, and agriculture.
The packaging industry in Kenya was valued at approximately $585 million (Sh75.5 billion) at the end of 2021 and is set to grow further.
To meet growing consumer demands and regulatory requirements, the industry is focusing on eco-friendly materials, innovative designs, and smart technologies.
Significant funding will be necessary to support advancements in digital printing and supply chain transparency, which are also gaining traction.
