KP Green Engineering shares list at nearly 39% premium to IPO price

Steel products maker KP Green Engineering Ltd on Friday made an impressive debut on exchanges with its shares listing at a premium of nearly 39% compared to issue price.

KP Green Engineering shares listed at ₹200 apiece on the BSE SME platform against the issue price of ₹144 per share, showing net gains of 38.88%.

The stock moved upward to a high of ₹210 per share in late morning deals, up by 5% from the listing price and 45% from the issue price.

Around 45 lakh shares of the company changed hands on the exchange in a trade turnover of ₹91.54 crore.

The market capitalisation of the company zoomed to ₹1,050 crore against ₹720 crore at the issue, adding net gains of ₹330 crore to the investor wealth.

KP Green Engineering Ltd IPO opened on March 15 to raise around ₹189.5 crore from public investors. The issue was open for subscription from March 15 to 19. The issue comprised a fresh sale of 1.31 crore shares at a price of ₹137 per share to ₹144 per share.

At the close of the bidding on March 19, the issue of KP Green Engineering was booked 29.5 times. Bids for 25,81,88,000 equity shares worth ₹3,717.91 were received against 8,752,000 equity shares on offer.

The Qualified Institutional Buyers’ portion was subscribed 31.86 times, Non Institutional Buyers’ category by 48.23 times and retail investors’ portion by 20.12 times.

The company raised ₹54 crore from anchor investors by allotting 3,750,000 shares.

KP Green Engineering has proposed to utilise the issue proceeds mainly for setting up a new manufacturing facility to increase its production capacity and product line. The company is likely to invest ₹156.17 crore in the new facility. The rest of the funds will be used for general corporate purposes and working capital requirements.

About KP Green Engineering

Surat-based KP Green Engineering is part of KP Group, promoted and founded by Farukbhai Gulambhai Patel. The Gujarat-based group has been operating since 1994 and has more than 30 companies across India.

KP Green Engineering produces fabricated and hot-dip galvanized steel products. It also offers in-house fabrication and Hot Dip Galvanizing facilities for custom-made solutions and end-to-end solutions. The company is also into solar installations.

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