KP Green Engineering IPO: Company Files Draft Papers With SEBI For SME IPO

KP Green Engineering's shares will be listed on the small and medium enterprise platform NSE Emerge after the listing

The IPO of KP Green Engineering is entirely a fresh issue of up to 1.31 crore shares with no offer of sale component, according to the DRHP filed last week.

Source : Getty

Gujarat-based KP Green Engineering Ltd, part of KP Group, has filed preliminary papers with capital markets regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO), the PTI reported. The company's shares will be listed on the small and medium enterprise platform NSE Emerge after the listing. According to PTI, this is the second offering from the KP Group after KP Energy Ltd came out with its maiden public issue in 2016.

The IPO of KP Green Engineering is entirely a fresh issue of up to 1.31 crore shares with no offer of sale component, according to the draft red herring prospectus (DRHP) filed last week. Proceeds from the fresh issuance worth Rs 156.14 crore will be utilised to partially finance the capital expenditure towards setting up a new manufacturing unit to expand its current production capabilities, expand the current product portfolio, and for general corporate purposes.

Founded in 2001, KP Green Engineering specialises in manufacturing fabricated and hot-dip galvanised steel items. Its extensive product range encompasses lattice tower structures, substation structures, solar module mounting structures, cable trays, earthing strips, beam crash barriers, and other infrastructure solutions.

KP Green Engineering clocked a profit of Rs 12.40 crore in FY23 against Rs 4.54 crore a year ago. Its revenue in FY23 increased to Rs 114.21 crore from Rs 77.70 crore in the previous fiscal, an increase of 47 per cent. Beeline Capital Advisors is the sole lead manager of the issue. 

SEBI returns IPO papers of Gretex Share Broking

The SEBI has returned the draft IPO papers of Gretex Share Broking, a move that might delay the company's initial share sale. The proposed IPO is a combination of a fresh issue of 1.67 crore equity shares and an offer-for-sale (OFS) component of 30.96 lakh shares by selling shareholders.

Proceeds from the fresh issue would be used towards working capital requirements and for general corporate purposes. The company filed its Draft Red Herring Prospectus (DRHP) with the SEBI in December 2023. According to an update on SEBI's website on Tuesday, the market regulator returned the company's DRHP on January 25 without giving reasons for the same.