KP Green Engineering IPO to open on March 15; check details

Steel products manufacturer KP Green Engineering will launch its initial public offering on March 15. The three-day IPO will close on March 19, 2024. The allotment of shares for the KP Green Engineering IPO is expected to be finalised on March 20, the tentative listing date on the bourses is March 22.

The steel products manufacturer has set the IPO price band at ₹137 to ₹144 per equity share of face value ₹5 each. The floor price is 27.4 times the face value and the cap price is 28.8 times of the face value. The minimum lot size is 1,000 shares and the retail investors are required to make a minimum investment of ₹14,000.

Through the IPO, the company is planning to raise ₹189.50 crore via book-built issue with a fresh issue of 1.32 crore shares. Of this, the company aims to use ₹156.1 crore to partly finance the capital expenditure for setting up a new manufacturing unit to expand its current production capabilities as well as expanding the current product portfolio.

The company says that up to 50% of the net issue is reserved for qualified institutional buyers. Not less than 35% of the net issue has been reserved for the retail individual and up to 15% for non-institutional bidders.

Beeline Capital Advisors Pvt Ltd is the book-running lead manager to the issue, whereas Bigshare Services Pvt Ltd is the registrar of the issue. Farukbhai Gulambhai Patel and Hassan Faruk Patel are the promoters of the company holding 90.37% share Pre-IPO. Post-IPO, the promoters will hold 66.59% of the company.

Incorporated in 2001, KP Green Engineering Limited provides diverse solutions under one roof with complete engineering and steel structure manufacturing. The company has a manufacturing facility with more than 2 lakh square feet of area. The company also has an upcoming new unit at Matar, Bharuch with a capacity of 1.20 lakh square meter of factory areas that will become fully operational by FY25. The company also has a hot dip galvanising facility. The Gujarat-based company is equipped with machinery for drilling, welding, lasser cutting, plasma operation, high-speed solar machine, and beam manufacturing machines.

In FY23, KP Green Engineering reported a net profit of ₹12.40 crore, as against ₹4.54 crore in FY22. The company’s revenue in FY23 stood at ₹114.2 crore, as against ₹77.7 crore.

 In the September quarter of FY24, the company reported a net profit of ₹11.26 crore and a revenue of ₹103.9 crore.