KP Green Engineering Files Draft Papers for SME IPO
By Rediff Money Desk, NEWDELHI Jan 30, 2024 18:48
KP Green Engineering, part of the Gujarat-based KP Group, has filed draft papers for an IPO on the BSE SME platform, aiming to raise Rs 175 crore. This could be the largest SME IPO since 2012.
New Delhi, Jan 30 (PTI) KP Green Engineering Ltd, part of the Gujarat-based KP Group, has filed preliminary papers with capital markets regulator Sebi to raise about Rs 175 crore through an initial public offering (IPO).
This could be the largest IPO by a small and medium enterprise since the SME platform was launched by exchanges in 2012.
The issue also marks the second offering from the KP Group after KP Energy Ltd came out with its maiden public issue in 2016.
The IPO of KP Green Engineering is entirely a fresh issue of up to 1.31 crore shares with no offer of sale component, according to the draft red herring prospectus (DRHP) filed last week.
Post-IPO, the company's shares will be listed on the BSE SME platform.
Proceeds from the fresh issuance worth Rs 156.14 crore will be utilised to partially finance the capital expenditure towards setting up a new manufacturing unit to expand its current production capabilities, expand the current product portfolio, and for general corporate purposes.
According to market sources, the issue size of KP Green Engineering is expected to be anywhere between Rs 150 crore and Rs 175 crore. Before this, Spectrum Talent Management Ltd, with an issue size of Rs 105.14 crore hit the capital markets in June 2023.
Founded in 2001, KP Green Engineering specialises in manufacturing fabricated and hot-dip galvanised steel items. Its extensive product range encompasses lattice tower structures, substation structures, solar module mounting structures, cable trays, earthing strips, beam crash barriers, and other infrastructure solutions.
KP Green Engineering clocked a profit of Rs 12.40 crore in FY23 against Rs 4.54 crore a year ago. Its revenue in FY23 increased to Rs 114.21 crore from Rs 77.70 crore in the previous fiscal, a rise of 47 per cent.
Beeline Capital Advisors is the sole lead manager of the issue.
This could be the largest IPO by a small and medium enterprise since the SME platform was launched by exchanges in 2012.
The issue also marks the second offering from the KP Group after KP Energy Ltd came out with its maiden public issue in 2016.
The IPO of KP Green Engineering is entirely a fresh issue of up to 1.31 crore shares with no offer of sale component, according to the draft red herring prospectus (DRHP) filed last week.
Post-IPO, the company's shares will be listed on the BSE SME platform.
Proceeds from the fresh issuance worth Rs 156.14 crore will be utilised to partially finance the capital expenditure towards setting up a new manufacturing unit to expand its current production capabilities, expand the current product portfolio, and for general corporate purposes.
According to market sources, the issue size of KP Green Engineering is expected to be anywhere between Rs 150 crore and Rs 175 crore. Before this, Spectrum Talent Management Ltd, with an issue size of Rs 105.14 crore hit the capital markets in June 2023.
Founded in 2001, KP Green Engineering specialises in manufacturing fabricated and hot-dip galvanised steel items. Its extensive product range encompasses lattice tower structures, substation structures, solar module mounting structures, cable trays, earthing strips, beam crash barriers, and other infrastructure solutions.
KP Green Engineering clocked a profit of Rs 12.40 crore in FY23 against Rs 4.54 crore a year ago. Its revenue in FY23 increased to Rs 114.21 crore from Rs 77.70 crore in the previous fiscal, a rise of 47 per cent.
Beeline Capital Advisors is the sole lead manager of the issue.
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