KP Green Engineering IPO presents an exciting opportunity for investors seeking exposure to sustainable engineering solutions. With a book built issue of Rs. 189.50 crores, this IPO comprises 131.6 lakh fresh shares, offering a chance to participate in the growth of a promising venture.
Subscription and Listing Bidding for KP Green Engineering IPO commenced on March 15, 2024, and will conclude on March 19, 2024. The allotment is slated for finalization on March 20, 2024, with the listing scheduled on BSE SME by March 22, 2024.
The IPO’s price band is set attractively between Rs. 137 to Rs. 144 per share, ensuring accessibility to various investor segments. The minimum application lot size stands at 1000 shares, requiring a minimum investment of Rs. 144,000 for retail investors. High Net Worth Individuals (HNI) can invest in multiples of 2 lots, totaling 2000 shares or Rs. 288,000.
Beeline Capital Advisors Pvt Ltd serves as the book running lead manager, ensuring efficient handling of the IPO process. Bigshare Services Pvt Ltd has been appointed as the registrar, streamlining administrative tasks for investors.
KP Green Engineering IPO signifies not just a financial opportunity but also a chance to contribute to sustainable development. Don’t miss out on this green investment wave!
KP Green Engineering IPO Details
KP Green Engineering is set to debut on the market with its Initial Public Offering (IPO) from March 15 to March 19, 2024. With a face value of Rs. 5 per share, the IPO offers investors an opportunity to participate in sustainable engineering ventures.
Price Band: The IPO is priced between Rs. 137 to Rs. 144 per share, ensuring affordability and attractiveness to potential investors.
Lot Size: Each application requires a minimum of 1000 shares, making it accessible to a wide range of investors.
Total Issue Size: The IPO comprises a total of 13,160,000 shares, amounting to Rs. 189.50 crores.
Issue Type: KP Green Engineering IPO is a Book Built Issue, allowing investors to bid for shares at prices within the specified range.
Listing Venue: Upon successful completion, the shares will be listed on BSE SME, providing a platform for trading and liquidity.
Shareholding Changes: The issuance of 13,160,000 fresh shares will lead to an increase in the post-issue shareholding to 50,000,000 shares from 36,840,000 shares pre-issue.
Market Maker Portion: A portion of 658,000 shares has been allocated to Market Makers, enhancing liquidity and stability in the initial trading phase.
KP Green Engineering IPO promises not only financial prospects but also an opportunity to support sustainable initiatives in the engineering sector. Investors can seize this chance to be part of a greener future while potentially reaping rewarding returns.
| IPO Date | March 15, 2024 to March 19, 2024 |
| Face Value | ₹5 per share |
| Price Band | ₹137 to ₹144 per share |
| Lot Size | 1000 Shares |
| Total Issue Size | 13,160,000 shares (aggregating up to ₹189.50 Cr) |
| Fresh Issue | 13,160,000 shares (aggregating up to ₹189.50 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE SME |
| Share holding pre issue | 36,840,000 |
| Share holding post issue | 50,000,000 |
| Market Maker portion | 658,000 shares |
KP Green Engineering IPO Reservation
KP Green Engineering IPO, comprising 13,160,000 shares, allocates shares across various investor categories, ensuring equitable participation and distribution.
Anchor Investors: A significant portion of 3,750,000 shares, accounting for 28.50% of the total offering, is reserved for Anchor Investors. These investors typically include institutional buyers who commit to large investments, providing stability to the IPO.
Market Makers: Market Makers are allocated 658,000 shares, representing 5.00% of the total shares offered. Their role is vital in ensuring liquidity and facilitating smooth trading in the secondary market.
Qualified Institutional Buyers (QIB): QIBs are offered 2,500,000 shares, constituting 19.00% of the total offering. These entities include mutual funds, financial institutions, and foreign institutional investors, bringing substantial capital to the IPO.
Non-Institutional Investors (NII/HNI): NII category, which includes High Net Worth Individuals (HNI), is allocated 1,876,000 shares, representing 14.26% of the total offering. This segment comprises investors who invest significant amounts individually.
Retail Investors: The retail segment is allocated the largest share of 4,376,000 shares, making up 33.25% of the total offering. Retail investors, with smaller individual investments, play a crucial role in democratizing the IPO process.
Total Shares Offered: The total shares offered sum up to 13,160,000, with each investor category receiving their respective allocations as per the predefined percentages.
KP Green Engineering IPO’s reservation strategy aims to cater to the diverse investor base, fostering broad participation and ensuring a fair distribution of shares across different investor segments.
| Investor Category | Shares Offered |
| Anchor Investor Shares Offered | 3,750,000 (28.50%) |
| Market Maker Shares Offered | 658,000 (5.00%) |
| QIB Shares Offered | 2,500,000 (19.00%) |
| NII (HNI) Shares Offered | 1,876,000 (14.26%) |
| Retail Shares Offered | 4,376,000 (33.25%) |
| Total Shares Offered | 13,160,000 (100%) |
Grey Market Premium (GMP) KP Green Engineering IPO
The Grey Market Premium (GMP) for KP Green Engineering SME IPO stands at Rs. 35, last updated on March 16th, 2024, at 01:24 PM. Considering the price band of Rs. 144.00, the estimated listing price is projected to be Rs. 179. This suggests a potential gain of approximately 24.31% per share.
It’s essential to note that the Retail Subject to Sauda for KP Green Engineering SME IPO is Rs. 26,600.
Daily updates on GMP reveal insights into market sentiment and expectations. Based on the last nine sessions, the current GMP of Rs. 35 indicates a trend towards the lower end. The range of GMP fluctuates between Rs. 30 (lowest) and Rs. 100 (highest), reflecting the dynamic nature of market perceptions.
Investors are advised to stay informed about the daily price trends of KP Green Engineering SME IPO GMP to make informed decisions regarding their investment strategies. Monitoring these trends can provide valuable insights into market sentiment and help investors gauge potential listing price movements.
| GMP Date | IPO Price | GMP | Sub2 Sauda Rate | Estimated Listing Price | Last Updated |
| 16-03-2024 | 144.00 | ₹35 No change | 26600 | ₹179 (24.31%) | 16-Mar-2024 14:24 |
| 15-03-2024 Open | 144.00 | ₹35 down | 26600 | ₹179 (24.31%) | 16-Mar-2024 0:27 |
| 14-03-2024 | 144.00 | ₹60 up | 45600 | ₹204 (41.67%) | 15-Mar-2024 0:30 |
| 13-03-2024 | 144.00 | ₹30 down | 22800 | ₹174 (20.83%) | 13-Mar-2024 23:25 |
| 12-03-2024 | 144.00 | ₹60 down | 45600 | ₹204 (41.67%) | 12-Mar-2024 23:28 |
| 11-03-2024 | 144.00 | ₹83 down | 63100 | ₹227 (57.64%) | 11-Mar-2024 23:29 |
| 10-03-2024 | 144.00 | ₹100 up | 76000 | ₹244 (69.44%) | 10-Mar-2024 23:26 |
| 09-03-2024 | 144.00 | ₹95 up | 72200 | ₹239 (65.97%) | 9-Mar-2024 23:32 |
| 08-03-2024 | 144.00 | ₹80 No change | 60800 | ₹224 (55.56%) | 8-Mar-2024 23:29 |
KP Green Engineering IPO Anchor Investors Details
KP Green Engineering IPO witnessed substantial interest from anchor investors, raising Rs. 54.00 crore in funding. The anchor bid date was on March 13, 2024, with a significant portion of 3,750,000 shares offered to these investors.
Bid Date: Anchor investors participated in the bidding process on March 13, 2024, demonstrating early confidence in KP Green Engineering IPO.
Shares Offered: A total of 3,750,000 shares were allocated to anchor investors, reflecting their strong interest and support for the IPO.
Anchor Portion Size: The anchor investors collectively contributed Rs. 54.00 crore towards the IPO, highlighting their substantial financial commitment.
Lock-in Period: Anchor investors are subject to lock-in periods for their shares. Fifty percent of the allocated shares have a lock-in period ending on April 19, 2024, while the remaining shares are locked in until June 18, 2024. This lock-in period ensures stability and prevents early selling pressure on the stock.
| Bid Date | March 13, 2024 |
| Shares Offered | 3,750,000 |
| Anchor Portion Size (In Cr.) | 54.00 |
| Anchor lock-in period end date for 50% shares (30 Days) | April 19, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | June 18, 2024 |
KP Green Engineering IPO Timeline Tentative Schedule
KP Green Engineering IPO presents an opportunity for investors to participate in its offering, with the following timeline:
IPO Open Date: The IPO opens for subscription on Friday, March 15, 2024, providing investors with the opportunity to place their bids.
IPO Close Date: Investors can subscribe to the IPO until Tuesday, March 19, 2024, before the closing time.
Basis of Allotment: The basis of allotment for KP Green Engineering IPO is determined on Wednesday, March 20, 2024, where shares are allocated to investors based on subscription levels and other criteria.
Initiation of Refunds: Refunds for unallocated shares are initiated on Thursday, March 21, 2024, ensuring a smooth process for investors.
Credit of Shares to Demat: Shares allotted to investors are credited to their Demat accounts on Thursday, March 21, 2024, enabling them to access and trade their shares.
Listing Date: KP Green Engineering IPO is scheduled to list on the stock exchange on Friday, March 22, 2024, marking its debut in the market.
Cut-off Time for UPI Mandate Confirmation: Investors are required to confirm their UPI mandates by 5 PM on March 19, 2024, to ensure seamless processing of their bids.
| IPO Open Date | Friday, March 15, 2024 |
| IPO Close Date | Tuesday, March 19, 2024 |
| Basis of Allotment | Wednesday, March 20, 2024 |
| Initiation of Refunds | Thursday, March 21, 2024 |
| Credit of Shares to Demat | Thursday, March 21, 2024 |
| Listing Date | Friday, March 22, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on March 19, 2024 |
KP Green Engineering IPO Lot Size
Investors interested in participating in the KP Green Engineering IPO can bid for shares in accordance with the following lot sizes:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 1000 | Rs. 144,000 |
| Retail (Max) | 1 | 1000 | Rs. 144,000 |
| HNI (Min) | 2 | 2000 | Rs. 288,000 |
Retail Investors: The minimum lot size for retail investors is 1 lot, equivalent to 1000 shares, requiring an investment of Rs. 144,000. Retail investors can bid for a maximum of 1 lot, maintaining the same share and investment size.
High Net Worth Individuals (HNI): HNI investors are required to bid for a minimum of 2 lots, totaling 2000 shares, with an investment of Rs. 288,000. There is no maximum limit specified for HNI investors, allowing flexibility in their investment size.
This structure ensures that both retail and HNI investors have the opportunity to participate in the KP Green Engineering IPO, with options tailored to their investment preferences and capabilities.
KP Green Engineering IPO Promoter Holding
The promoters of KP Green Engineering are Dr. Farukbhai Gulambhai Patel and Mr. Hassan Faruk Patel. Here’s a breakdown of their shareholding pre and post the IPO:
Share Holding Pre Issue: Prior to the IPO, the promoters held a significant stake in the company, amounting to 90.37% of the total shares.
Share Holding Post Issue: Following the IPO, the promoter’s shareholding is expected to decrease to 66.59% of the total shares, reflecting the dilution resulting from the issuance of new shares to public investors.
| Share Holding Pre Issue | 90.37% |
| Share Holding Post Issue | 66.59% |
About KP Green Engineering Limited
KP Green Engineering Limited, established in July 2001, specializes in the manufacturing of fabricated and hot-dip galvanized steel products. With a diverse product portfolio comprising Lattice Towers Structures, Substation Structures, Solar Module Mounting Structures, Cable trays, Earthing strips, and Beam Crash Barriers, the company caters to various industries.
End-to-End Solutions: KP Green Engineering offers comprehensive solutions by providing in-house fabrication and Hot Dip Galvanizing facilities, ensuring customized and high-quality products.
State-of-the-Art Facility: Situated in Dabhasa, Vadodara, Gujarat, the company’s manufacturing facility spans 200,000 sq. ft. and is equipped with advanced CNC machinery and equipment, enabling efficient production processes.
Quality Assurance: The company holds ISO 9001:2015 certification, underscoring its commitment to delivering superior products and services. This certification enhances its reputation, fosters customer satisfaction, and contributes to long-term success.
Workforce: As of September 30, 2023, KP Green Engineering employs a dedicated team of 81 professionals at its manufacturing facility and head office, ensuring operational excellence and customer-centric approaches.
KP Green Engineering Limited’s focus on innovation, quality, and customer satisfaction positions it as a leading player in the manufacturing sector, poised for continued growth and success in the market.
KP Green Engineering Limited Financial Information Restated Consolidated
Below are the restated consolidated financial figures for KP Green Engineering Limited for the periods ended September 30, 2023, and March 31, 2023:
| Financial Metrics | Sep 30, 2023 (Rs. Lakhs) | Mar 31, 2023 (Rs. Lakhs) |
| Assets | 13,635.62 | 9,506.65 |
| Revenue | 10,413.64 | 11,478.50 |
| Profit After Tax | 1,126.64 | 1,239.45 |
| Reserves and Surplus | 2,624.03 | 3,177.38 |
Asset Growth: The total assets of KP Green Engineering have seen significant growth, reaching Rs. 13,635.62 lakhs as of September 30, 2023, compared to Rs. 9,506.65 lakhs as of March 31, 2023.
Revenue Performance: Despite a slight decrease in revenue from Rs. 11,478.50 lakhs in March 2023 to Rs. 10,413.64 lakhs in September 2023, KP Green Engineering maintains a substantial revenue base.
Profitability: The company’s Profit After Tax stands at Rs. 1,126.64 lakhs for September 2023, indicating profitability; however, there’s a slight decrease compared to the previous period’s PAT of Rs. 1,239.45 lakhs.
Reserves and Surplus: KP Green Engineering’s Reserves and Surplus amounted to Rs. 2,624.03 lakhs as of September 30, 2023, reflecting a decrease from Rs. 3,177.38 lakhs reported as of March 31, 2023.
These financial figures demonstrate KP Green Engineering’s continued growth trajectory and financial stability, despite minor fluctuations in revenue and profitability metrics.
Key Performance Indicator
As investors evaluate KP Green Engineering IPO, various key performance indicators (KPIs) provide insights into the company’s financial health and performance. Here are the important KPIs:
Market Capitalization: The market capitalization of KP Green Engineering IPO stands at Rs 720 Cr, indicating the total market value of the company’s outstanding shares.
Return on Equity (ROE): KP Green Engineering achieves an ROE of 29.24%, reflecting its ability to generate profits from shareholders’ equity investments.
Return on Capital Employed (ROCE): With an ROCE of 23.05%, the company efficiently utilizes its capital to generate returns.
Debt/Equity Ratio: KP Green Engineering maintains a Debt/Equity ratio of 1.11, indicating a moderate level of debt relative to its equity.
Return on Net Worth (RoNW): The RoNW for KP Green Engineering stands at 25.51%, showcasing its ability to generate profits relative to its net worth.
Price-to-Book Value (P/BV): The P/BV ratio of 11.69 suggests that KP Green Engineering IPO is trading at a premium relative to its book value per share.
Profit After Tax (PAT) Margin: KP Green Engineering achieves a PAT Margin of 10.84%, indicating the percentage of revenue that translates into net profit after accounting for all expenses.
These KPIs provide valuable insights into KP Green Engineering’s financial performance, profitability, and market valuation, aiding investors in making informed decisions regarding their investment in the IPO.
| KPI | Values |
| ROE | 29.24% |
| ROCE | 23.05% |
| Debt/Equity | 1.11 |
| RoNW | 25.51% |
| P/BV | 11.69 |
| PAT Margin (%) | 10.84 |
Objects of the Issue KP Green Engineering IPO Objectives
The proceeds from the Fresh Issue of KP Green Engineering IPO will be allocated towards the following objectives:
Expansion of Manufacturing Unit: A portion of the funds will be utilized to partially finance the capital expenditure required for setting up a new manufacturing unit. This expansion aims to enhance the company’s current production capabilities and facilitate the diversification and expansion of its product portfolio.
General Corporate Purposes: The remaining funds will be utilized for general corporate purposes, which may include meeting working capital requirements, servicing debt obligations, funding research and development initiatives, and other operational expenses essential for the company’s ongoing business operations and growth strategies.
By allocating funds towards these objectives, KP Green Engineering aims to strengthen its operational infrastructure, broaden its product offerings, and support its overall growth and expansion plans, thereby enhancing shareholder value and competitiveness in the market.
