KP Green Engineering, a manufacturer of fabricated and hot-dip galvanized steel products, is set to launch the largest-ever IPO in the SME (small and medium enterprise) segment on March 15.
The IPO, comprising 1,31,60,000 equity shares, will close on March 19, with the anchor book opening for a day on March 14.
With a price band of Rs 137-144 per equity share, the Gujarat-based KP Group company aims to raise Rs 189.5 crore through its public issue, which consists solely of a fresh issue with no offer-for-sale component.
The company has allocated 6.58 lakh equity shares for market makers, with the remaining portion constituting the net issue. Half of the issue size is reserved for qualified institutional buyers, 15 percent for non-institutional investors, and 35 percent for retail investors. Retail investors can bid for one lot, worth Rs 1.4 lakh, as they are allowed to invest up to Rs 2 lakh in any IPO.
KP Green Engineering, known for providing various products such as lattice towers, substations, solar module mounting structures, cable trays, earthing strips, and beam crash barriers, plans to utilize Rs 156.1 crore from the net fresh issue proceeds to establish a new manufacturing unit. This aims to expand production capabilities and product portfolio. The remaining fresh issue funds will be allocated for general corporate purposes.
Operating through a manufacturing facility in Vadodara, the company is expanding its business lines and introducing new products at a new manufacturing plant in Bharuch. The new facility will have a capacity exceeding 2.94 lakh MT, a significant increase from its current capacity of 53,000 MT at the existing plant.
The new plant will introduce new product lines such as high masts, floor gratings, pre-engineered buildings, and heavy fabrications.
In terms of financial performance, KP Green Engineering recorded a standalone net profit of Rs 12.4 crore for FY23, up substantially from Rs 4.5 crore in the previous year, with revenue from operations increasing to Rs 114.2 crore from Rs 77.7 crore during the same period.
For the six-month period ending September FY24, the company has already achieved revenue and profit levels close to those of FY23, with net profit at Rs 11.3 crore on revenue of Rs 103.93 crore.
Beeline Capital Advisors is the sole book running lead manager to the issue, and the equity shares are proposed to be listed on the BSE SME.
