KP Green Engineering, a leading manufacturer of fabricated and hot-dip galvanised steel products, is set to launch the largest SME IPO on Dalal Street on March 15. The offering comprises 1,31,60,000 equity shares and is scheduled to close on March 19, with an anchor book opening for a day on March 14.
The company aims to raise Rs 189.5 crore at an upper price band in this fresh issue, without an offer-for-sale component. The price band is set at Rs 137-144 per share. KP Group, based in Gujarat, has allocated 6.58 lakh shares for the market maker and outlined a distribution for various investor types.
KP Green Engineering plans to use Rs 156.1 crore from the proceeds to set up a new manufacturing unit in Bharuch, enhancing production capacity and product range. The rest will support general corporate needs. The new plant will significantly boost capacity from the current 53,000 MT to over 2.94 lakh MT.
Financially, KP Green Engineering showed robust growth with a standalone net profit of Rs 12.4 crore in FY23, a substantial increase from Rs 4.5 crore in the previous year. Its revenue also surged to Rs 114.2 crore from Rs 77.7 crore. In the first half of FY24, the company nearly matched its full-year FY23 performance in both revenue and profit.