KP Green Engineering Limited has recently submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI), signaling its intent to go public with an Initial Public Offer (IPO). The company, a key player within the KP Group headquartered in Gujarat, specializes in the production of hot-dip galvanized and manufactured steel products.
The proposed IPO, featuring a face value of ₹5 per equity share, stands as an entirely fresh issue, encompassing up to 13.16 million shares with no Offer for Sale (OFS) component. The focal point of this strategic move is to secure funds, with the company eyeing the BSE SME platform for listing.
With a mission to enhance its production capabilities, diversify its product line, and achieve broader corporate objectives, KP Green Engineering Limited intends to utilize the ₹156.14 crore proceeds from the IPO. This significant investment will be channeled into establishing a new state-of-the-art manufacturing facility.
Embracing a book-building process, the IPO allocates not less than 15% of the net issue to non-institutional investors, a minimum of 35% to retail individual investors, and up to 50% on a proportionate basis to qualified institutional buyers.
For the fiscal year FY23, KP Green Engineering witnessed a noteworthy profit surge, reaching ₹12.40 crore, up from ₹4.54 crore in the preceding year. The company’s income saw a substantial growth of 46.98%, soaring to ₹114.21 crore from ₹77.70 crore in the previous fiscal year. This surge was predominantly fueled by heightened sales of goods and services.
As of December 31, 2023, the company’s operating revenue for the nine months totaled ₹103.93 crore, with a commendable profit after tax standing at ₹11.27 crore.
The IPO is under the administration of Bigshare Services Private Limited, serving as the issue’s registrar, while Beeline Capital Advisors Private Limited assumes the role of the sole lead manager.
Following in the footsteps of KP Energy Ltd and KPI Global Infrastructure Ltd, KP Green Engineering’s IPO marks the third offering from the esteemed KP Group, positioning the company for significant growth and expansion.