KP Green Engineering is coming up with an IPO worth INR 189.50 crores, consisting of a fresh issue of 1.31 crore shares. The company plans to use the funds raised for a new manufacturing unit.
KP Green Engineering IPO – Important Details
| KP Green Engineering IPO Date | March 15, 2024 to March 19, 2024 |
| KP Green Engineering IPO Listing Date | March 22, 2024 |
| KP Green Engineering IPO Price | INR 137 to 144 per share |
| KP Green Engineering IPO Lot Size | 1000 Shares |
| KP Green Engineering IPO Total Issue Size | INR 189.50 crores |
| KP Green Engineering IPO Basis of Allotment | March 20, 2024 |
| KP Green Engineering IPO Initiation of Refunds | March 21, 2024 |
| KP Green Engineering IPO Credit of Shares to Demat | March 21, 2024 |
| KP Green Engineering IPO Issue Type | Book Built Issue IPO |
| KP Green Engineering IPO Listing At | BSE SME |
KP Green Engineering Ltd IPO – Company Profile
Incorporated in 2001, the company manufactures fabricated and hot-dip galvanized steel products. The diverse range of products includes Lattice Towers Structures, Substation Structures, Solar Module Mounting Structures, Cable trays, Earthing strips, Beam Crash Barriers, and other infrastructure solution products. The company operates through a manufacturing facility located at Dabhasa, Vadodara, Gujarat.
The company is a part of Gujarat-based KP Group, promoted and founded by Dr. Farukbhai Gulambhai Patel. Since 1994, KP Group has completed more than 25 years of successful operations. KP Group consists of more than 30 companies across India, all playing vital roles in the robust growth of the organization.
KP Group has achieved its growth through diversification into various sectors including fabrication and galvanizing, renewable energy sector (Solar & Wind), Telecom Infrastructure (Telecom Towers and OFC Network set up), and Green Hydrogen and Ammonia showcasing its commitment to sustainable and innovative solutions.
KP Green Engineering Limited IPO – Fundamental Analysis
KP Green Engineering Limited’s IPO showcases strong revenue growth, notable profitability improvements, and robust financial health, despite some EPS fluctuation and increased leverage, indicating a potentially lucrative investment in its industry with promising growth prospects.
Revenue Growth:
The company has shown a consistent increase in revenue, peaking at ₹11,420.89 lakhs in March 2023 before a slight dip to ₹10,393.23 lakhs by September 2023. This trajectory indicates a growing demand for its services or products.
Equity Growth:
Equity has more than doubled within the period, reflecting strong investor confidence and possibly effective reinvestment strategies to support expansion.
Profitability:
A significant increase in profit after tax, especially in March 2023, highlights the company’s growing operational efficiency and profitability. Although there’s a slight decrease by September 2023, the overall trend remains positive.
Diluted EPS:
The EPS shows an interesting trend, peaking in March 2023 then sharply decreasing by September 2023. This fluctuation needs closer examination to understand the underlying causes.
NAV per Equity Share:
There’s a notable increase in the NAV per equity share by September 2023, suggesting an enhancement in the intrinsic value of the company’s shares despite the earlier drop in March 2023.
Asset and Liability Management:
Total assets have seen a significant increase, indicating business expansion and investment in operational capacity. However, liabilities have also grown, impacting the debt-equity ratio, which suggests a higher leverage by September 2023.
Liquidity and Inventory Management:
The improvement in the current ratio and inventory turnover ratio by September 2023 signifies better liquidity and operational efficiency, demonstrating the company’s ability to manage its inventory more effectively and meet short-term obligations.
KP Green Engineering Limited IPO Financial Information
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 30 September 2023 |
| Revenue (₹ in lakhs) | 7,770.16 | 11,420.89 | 10,393.23 |
| Equity (₹ in lakhs) | 2,050.00 | 3,289.60 | 4,416.25 |
| Expenses (₹ in lakhs) | 7,232.88 | 9,817.89 | 8,895.93 |
| Profit and Loss After Tax (₹ in lakhs) | 454.46 | 1,239.60 | 1,126.64 |
| Diluted EPS only (₹) | 3.14 | 3.46 | 1.27 |
| NAV per Equity Share (₹) | 22.17 | 9.93 | 25.51 |
| Total Assets (in lakhs) | 8,348.58 | 9,506.63 | 13,635.60 |
| Total Liabilities (in lakhs) | 6,298.58 | 6,217.03 | 9,219.35 |
| Debt Equity Ratio (in times) | 0.98 | 0.54 | 1.11 |
| Current Ratio (in times) | 1.23 | 1.19 | 1.48 |
| Inventory Turnover Ratio (in times) | 2.65 | 2.35 | 3.37 |
KP Green Engineering IPO Comparison
KP Green Engineering Limited stands out with a RoNW of 37.68% and an EPS of ₹3.46 on revenue of ₹11,420.89 lakhs, showcasing higher efficiency and profitability compared to Salasar Techno Engineering and Skipper Limited, despite their larger revenues.
| Company | Standalone / Consolidated | Total Revenue (₹ in lakhs) | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| KP Green Engineering Limited | Standalone | 11,420.89 | 3.46 | 37.68% | 9.18 |
| Salasar Techno Engineering Ltd | Standalone | 1,00,005.66 | 1.32 | 10.03% | 12.67 |
| Skipper Limited | Standalone | 1,98,030.00 | 3.19 | 4.26% | 74.80 |
KP Green Engineering IPO Objective
The main objective is to establish a new manufacturing unit in Matar, Bharuch, expanding existing business lines and adding new products. INR 156.14 crores from IPO proceeds will be used. Additionally, funds will support general corporate goals.
- To set up a new manufacturing unit: The company is further planning to expand into its existing line of business and add new products to its portfolio at the new manufacturing plant proposed to be set up at Matar, Bharuch. For the said purpose, the company plans to utilize INR 156.14 crores from the proceeds raised through IPO.
- General Corporate Purpose: The Company plans to deploy the balance funds towards the general corporate goals, including but not restricted to strategic initiatives, partnerships, joint ventures and strategic entity/business acquisitions, branding, marketing, and new client referral fees meeting exigencies.
KP Green Engineering Limited IPO Risks And Challenges
KP Green Engineering Limited’s risks include heavy reliance on Infrastructure Industry revenue and susceptibility to adverse industry changes. Dependence on Gujarat operations poses a vulnerability. Consistent negative cash flow threatens business, financial health, and operational results.
- A significant portion of the revenue comes from the infrastructure industry. Any adverse changes in the Infrastructure Industry could adversely impact the business, results of operations, and financial conditions.
- The revenues are highly dependent on the operations in the geographical region of the state of Gujarat. Any adverse development affecting the operations in this region could harm the business, financial condition, and results of operations.
- The Company has had negative cash flow from operating activity in recent financial years. Sustained negative cash flow could adversely impact the business, financial condition, and results of operations.
KP Green Engineering IPO – Industry & Market Potential
One of the primary forces behind industrialization has been the use of metals. Steel has traditionally occupied a top spot among metals. Steel production and consumption are frequently seen as measures of a country’s economic development because it is both a raw material and an intermediary product. Therefore, it would not be an exaggeration to argue that the steel sector has always been at the forefront of industrial progress and that it is the foundation of any economy.
The Indian steel industry is classified into three categories – major producers, main producers, and secondary producers. India is the world’s second-largest producer of crude steel, with an output of 125.32 MT of crude steel and finished steel production of 121.29 MT in FY23. India’s steel production is estimated to grow 4-7% to 123-127 MT in FY24.
KP Green Engineering IPO – Type of Offer
KP Green Engineering is set to launch an IPO valued at INR 189.50 crores, featuring a fresh issue of 1.31 crore shares. The company intends to set up a new manufacturing facility.
KP Green Engineering IPO Offer Size
The offer size of KP Green Engineering Limited’s IPO is INR 189.50 crores. The net proceeds will be used to set up a new manufacturing facility.
KP Green Engineering IPO Allotment Structure
KP Green Engineering’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. A portion of the offer is reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Makers Reservations: A portion of the issue up to 6,58,000 shares is reserved for market makers.
How to apply for a KP Green Engineering Ltd IPO?
To apply for the KP Green Engineering IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the KP Green Engineering IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the KP Green Engineering IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check KP Green Engineering IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the KP Green Engineering IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the KP Green Engineering IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the KP Green Engineering IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the KP Green Engineering IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
KP Green Engineering Ltd IPO Offer Registrar
The registrar for the KP Green Engineering Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
Office No. S-2, 6th Floor, Pinnacle Business Park,
Mahakali Caves Road,
Next to Ahura Centre, Andheri (East), Mumbai – 400093
Website: www.bigshareonline.com
Email: [email protected]
KP Green Engineering IPO – FAQs
1. What is the allotment date of KP Green Engineering Limited?
The allotment date of the KP Green Engineering Limited IPO is March 20, 2024.
2. What is the price band of the KP Green Engineering IPO?
The price band of the issue is INR 137-144 per share.
3. What is the size of the KP Green Engineering IPO?
KP Green Engineering is coming up with an IPO worth INR 189.50 crores, consisting of a fresh issue of 1.31 crore shares. The company plans to use the funds raised for a new manufacturing unit.
4. What is the listing date of the KP Green Engineering IPO?
The listing date of KP Green Engineering’s IPO is Mach 22, 2024.
