About the Company:
KP Green Engineering Ltd manufactures fabricated and hot-dip galvanized steel products.
Company’s diverse range of products includes Lattice Towers Structures, Substation Structures, Solar Module Mounting Structures, Cable trays, Earthing strips, Beam Crash Barriers and other infrastructure solution products.
Company provides in-house fabrication and Hot Dip Galvanizing facilities enabling tailormade solutions to our clients and end-to-end solutions by carrying out engineering, designing, fabrication, galvanization, and deployment.
Company is an accredited vendor with GETCO (Gujarat Energy Transmission Corporation Limited) and MSETCL (Maharashtra State Electricity Transmission Company) for upto 400 Kw and 220 Kw, respectively.
Company operates through a manufacturing facility located at Dabhasa, Vadodara – 391440, Gujarat, spread across an area of 200,000 sq. ft., fully equipped with CNC machinery and equipment.
Company also provide Fault Rectification Services (FRT) w.r.t. Optical Fiber Cables to various telecom operators, Job work for galvanizing and Solar Installation services as part of our service portfolio.
Company has 69 projects in hand with an aggregate order book value of approximately Rs.233.91 cr.
Core business can be divided in following categories:
- Manufacturing of Fabricated and Galvanised Products.
- Services Business.
Manufacturing of Fabricated and Galvanised Products.
Under this vertical, Company provides fabrication and Hot-dip galvanised steel products to customers in accordance with their needs and requirements.
Company’s product range includes Lattice Towers Structures, Substation Structures, Solar Module Mounting Structures, Cable trays, Beam Crash Barriers, Galvanized Earthing Strips and Flats to roofing channels.
Company provides in-house fabrication and Hot Dip Galvanizing facilities enabling tailormade solutions to clients and end-to-end solutions by carrying out engineering, designing, fabrication, galvanization, and deployment.
Service Business:
Company provides Fault Rectification Services w.r.t Optical Fiber Cables to various telecom service providers.
Optical Fiber cables plays a crucial role in ensuring the reliability and optimal performance of telecommunication networks. Company provide FRT services via O&M Services which includes Regular Inspection, Preventive Maintenance, Fault Monitoring and Fault Rectification.
Company also provides Galvanizing services on Job work basis as per the requirement of clients and solar rooftop installation services.
Company’s Revenue Bifurcation:
About Promoter Group: (KP Group)
KP Green Engineering Ltd is a part of Gujarat based KP Group, promoted and founded by Dr. Farukbhai Gulambhai Patel. Operating since 1994, KP Group has completed more than 25 years of its successful operations.
KP Group consists of more than 30 companies across India, all playing vital role in the robust growth of the organization.
KP Group has achieved its growth through diversification into various sectors including fabrication and galvanizing, renewable energy sector (Solar & Wind), Telecom Infrastructure (Telecom Towers and OFC Network set up) and Green Hydrogen and Ammonia showcasing its commitment to sustainable and innovative solutions.
Company’s Business Expansion Plans:
Company is further planning to expand into our existing line of business along with addition of new products to our portfolio at our new manufacturing plant proposed to be set up at Matar, Bharuch.
The new facility will have a capacity of more than 2,90,000 MT, a substantial increase from company’s current capacity of 53,000 MT at the existing plant.
In addition to existing product offerings, Company is planning to introduce new line of products including High Masts, Floor Gratings, Pre-Engineered Buildings and Heavy Fabrications to meet evolving market demands.
Company’s Manufacturing Facilities:
Manufacturing Facility spread over 2,00,000 sq. ft. is situated at 146/147, Ekalbara Road, Dabhasa, Ta-Padra,Gujarat, 391440.
Company’s Installed Capacity and Capacity Utilization:
Key Operational Parameters of the Company:
Management Team:
- Dr. Farukbhai Gulambhai Patel (Designation: Chairman & Non-Executive Director)
- Mr. Muinulhaque Iqbalhusen Kadva (Designation: Whole Time Director)
Objectives of the Issue:
Fresh Issue: (Rs.189 cr)
- Part finance the capital expenditure towards setting up of a new manufacturing unit to expand its current production capabilities as well as expanding current product portfolio.
- General Corporate Purposes
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Part Finance the capital expenditure towards setting up of a new manufacturing unit to expand its current production capabilities as well as expanding our current product portfolio. | 156.14 cr |
The schedule of implementation of the Proposed Project is set forth below:
Positives for the Company:
Company has Strong execution capabilities.
- Company’s execution capabilities are a skill set that gives our company competitive advantage over other industry players.Company operate from manufacturing facility located at Dabhasa, Vadodara having installed capacity of more than 53,000 MT per annum.
- Company has increased installed capacity in each of the last three financial years as well as current financial year to cater the needs of the customers in timely manner along with growth of the company.
- Company is accredited vendor with GETCO (Gujarat Energy Transmission Corporation Limited) and MSETCL (Maharashtra State Electricity Transmission Company) for upto 400 Kw and 220 Kw, respectively.
- As on December 31, 2023, Company has 69 projects in hand with an aggregate order book value of approximately Rs.233.91 cr.
Setting up a manufacturing unit to diversify the business operations.
- Over the years company has diversified its product and service portfolio by venturing into specialized various products and services.
- Company is further planning to expand into our existing line of business along with addition of new products to our portfolio at our new manufacturing plant proposed to be set up at Village Matar Talpad, Taluka Amod, District Bharuch.
- The new facility will have a capacity of 2,94,000 MT, a substantial increase from companys’ current capacity of 53,000 MT at existing plant located at Dabhasa, Vadodara.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 30th Sept 23 |
|---|---|---|---|---|
| Revenue | 38.83 | 78.42 | 114.78 | 104.13 |
| Net Profit | 1.58 | 4.54 | 12.39 | 11.26 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| KP Green Engineering Ltd | 5 | 3.46 | 41.6 | 37.68% | 9.18 |
| Salasar Techno Engineering Ltd | 1 | 1.32 | 30.23 | 10.03% | 12.67 |
| Skipper Ltd | 1 | 3.19 | 30.20 | 4.26% | 74.80 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 15th March 2024 |
| Issue Closes on | 19th March 2024 |
| Issue Price | Rs.137 – 144 |
| Face Value | Rs.5 |
| Minimum Lot | 1000 Shares |
| Minimum Investment | Rs.1,44,000 |
| Issue Constitutes | 26.32% |
| Issue Size | Rs. 189.5 cr ($ 22 million ) |
| Market Cap | Rs. 720 cr ($ 86 million ) |
| Listing at | BSE SME |
| Equity Shares Offered (Fresh) | 1,31,60,000 (Rs.189.5 cr) |
| Equity Shares Prior to the Issue | 3,68,40,000 |
| Equity Shares after the Issue | 5,00,00,000 |
Also Read : List of Upcoming IPO’s in India.
Also Read: List of Upcoming SME IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 20th March 2024 |
| Initiation of Refunds | on or Before 21st March 2024 |
| Credit of Equity Shares: | on or Before 21st March 2024 |
| Listing Date: | on or Before 22nd March 2024 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 3.46 | 41.6 | 37.68% | 9.18 |
| Company Contact Info: |
|---|
| KP Green Engineering Limited ‘KP House’, Near KP Circle, Opp. Ishwar Farm Junction BRTS, Canal Road, Bhatar, Surat, Gujarat- 395017 India; Telephone No.: 0261 224 4757 Email Id: compliance@kpgroup.co Website: www.kpgreenengineering.com |
| Registrar to the Issue: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED Address: S6-2, 6th Pinnacle business Park, Mahakali Caves Road, next to Ahura Center, Andheri East, Mumbai-400093, Maharashtra, India. Tel. Number: 022-62638200 Email Id: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| BEELINE CAPITAL ADVISORS PRIVATE LIMITED B 1311-1314 Thirteenth Floor Shilp Corporate Park, Rajpath Rangoli Road Thaltej Ahmedabad Gujarat 380054 India. Telephone Number: 079 4918 5784 Investors Grievance Id: ig@beelinemb.com Website: www.beelinemb.com |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/Allotment
|
