KP Green Engineering Ltd, a manufacturer of steel products, is all set to launch its initial public offering (IPO) on March 15. The company has fixed the price band for the issue, making it the third offering from the KP Group.
The IPO, classified as an SME IPO, will be open for subscription from March 15 to March 19. The final allotment of IPO shares is expected to be done on March 20, and the company’s shares are scheduled to be listed on BSE SME around March 22.
KP Green Engineering aims to raise ₹189.50 crore from the primary market through a fresh issue of 1.31 crore equity shares. The IPO price range has been set at ₹137 to ₹144 per share, and the minimum investment required by retail investors is ₹144,000 for a lot size of 1,000 shares.
The funds raised from the IPO will be used to partially finance the capital expenditure for setting up a new manufacturing unit, expanding production capabilities, and diversifying the product portfolio. Beeline Capital Advisors Pvt Ltd is the book-running lead manager, and Bigshare Services Pvt Ltd is the IPO registrar.
The IPO allocation is as follows: 50% for Qualified Institutional Buyers (QIBs), not less than 35% for Retail Investors, and the remaining 15% for Non-Institutional Investors (NIIs).
As of now, the grey market premium (GMP) for KP Green Engineering IPO is ₹80 per share, indicating that the shares are trading at a premium of 55.56% in the grey market compared to the IPO price of ₹144.
KP Green Engineering, established in 2001, specializes in manufacturing fabricated and hot-dip galvanized steel products, including lattice tower structures, substation structures, solar module mounting structures, cable trays, earthing strips, and beam crash barriers. The company operates from its facility in Vadodara, Gujarat, spanning 200,000 sq. ft.
The promoters of KP Green Engineering are Dr. Farukbhai Gulambhai Patel and Hassan Faruk Patel. Post IPO, their shareholding will reduce from 90.37% to 66.59%. In the financial year 2022-2023, the company reported a net profit of ₹12.40 crore on a revenue of ₹114.21 crore, and for the period ending September 2023, the net profit was ₹11.26 crore with revenue amounting to ₹104.13 crore.
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