KP Green Engineering IPO receives strong response, issue subscribed 1.63 times on Day 1: Check price band, offer size and other key details

Leading manufacturer of fabricated and hot-dip galvanized steel products, KP Green Engineering, launched its initial public offering (IPO) on Friday, March 15. This is one of the largest public offers in the SME (small and medium enterprise) segment so far this year.

Ahead of the launch of the IPO, the company successfully secured ₹54 crore from anchor investors.

KP Green Engineering IPO was booked 1.63 times till 05:15 pm on Friday, after the launch of the public issue. The company received bids for 1.53 crore shares compared to 94.1 lakh shares on offer for public investors.

Both the non-institutional investors (NIIs) and retail investors segments were booked 38% while the qualified institutional buyers’ (QIBs) portion received bids for only 12,000 shares compared to 25 lakh shares on offer for the category.

Here are all the key details you need to know before jumping on the IPO bandwagon.

KP Green Engineering IPO: Important dates

KP Green Engineering IPO subscription is open from March 15 to March 19. The company is expected to finalist IPO share allotment status on Wednesday, March 20.

After finalising the share allocation, the refunds for the unsuccessful bidders is expected to be initiated on March 21 and the shares will be transferred to the Demat accounts of allottees on March 21.

Shares of KP Green Engineering are expected to be listed on the BSE SME platform on March 22.

KP Green Engineering IPO: Offer size, price band, lot size and other details

KP Green Engineering plans to issue 1,31,60,000 equity shares through its IPO aiming to raise ₹189.5 crore at the upper price band. This offering comprises solely of fresh issue shares, with no offer-for-sale component.

The total issue size includes 37.5 lakh shares for anchor investors and a market maker allocation of 6.58 lakh shares. The net issue size for public investors is 87,52,000 shares.

Half of the issue size is reserved for QIBs, 15% for NIIs and the remaining 35% for retail investors.

KP Green Engineering IPO price band has been set at ₹137-144 per equity share.

Investors can bid for a minimum of 1,000 equity shares, with subsequent bids in multiples of 1,000 shares. Retail investors can bid for a minimum of one lot, aggregating to application amount of ₹1.4 lakh.

About KP Green Engineering

KP Green Engineering specialises in a wide array of products, including lattice towers, substations, solar module mounting structures, cable trays, earthing strips and beam crash barriers.

The company intends to utilise the net proceeds from the IPO, nearly ₹156.1 crore, to establish a new manufacturing unit. This strategic move aims to enhance production capabilities and diversify its product portfolio, reinforcing its market presence.

With plans to set up a new manufacturing plant in Bharuch, Gujarat, KP Green Engineering anticipates a substantial increase in its production capacity, surpassing 2.94 lakh MT, compared to the current capacity of 53,000 MT.

KP Green Engineering has reported a strong growth in net profit in the last three financial years. Its net profit grew nearly three-fold to ₹12.4 crore in FY23 compared to ₹4.5 crore recorded in FY22.

The company’s revenue from operations surged to ₹114.2 crore in FY23.

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