KP Green Engineering makes a strong debut on SME BSE, lists at 38% premium to issue price

Steel products maker KP Green Engineering made a solid debut on SME BSE on March 22 as shares were listed at 38 percent premium of Rs 200 per share, as against its issue price of Rs 144 per share. KP Green’s initial public offering (IPO) received a decent response from investors as it subscribed over 20 times at close.

The IPO of KP Green was subscribed 20.1x in the retail category, 31.8x in the qualified institutional buyer (QIB) category, and 48.2x in the non-institutional investor (NII) category.

The Rs 189.5 crore-KP Green Engineering public issue was entirely a fresh equity sale of Rs 1.31 crore shares. It plans to utilise net proceeds of the issue to finance capital expenditure, general corporate purposes, and issue expenses.

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KP Green’s IPO was the biggest-ever in the SME IPO segment, followed by Spectrum Talent Management’s Rs 105 crore offer, and Aashka Hospitals’ Rs 101.6 crore, data showed.

KP Green Engineering is a manufacturer of fabricated and hot-dip galvanised steel products. It offers end-to-end solutions by providing in-house fabrication and hot dip galvanising facilities for custom made-solutions.

The company operates the business through manufacturing facility in Vadodara. Now, it is further planning to expand the existing line of business along with addition of new products to portfolio at new manufacturing plant in Bharuch. In the new plant, it is planning to introduce new line of products including high masts, floor gratings, pre-engineered buildings and heavy fabrications.

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The company has recorded standalone net profit at Rs 12.4 crore for the financial year ended March FY23, increasing substantially from Rs 4.5 crore in previous year, and the revenue from operations growing to Rs 114.2 crore, from Rs 77.7 crore during the same period.

In the six months period ended September FY24, the company already reached closer to its topline and bottomline of FY23, with net profit at Rs 11.3 crore on revenue of Rs 103.93 crore.

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