Pune-based KSH International, the third largest manufacturer of magnet winding wires in India, plans to tap capital markets for fund raising up to Rs 745 crore via initial public offering (IPO) for debt reduction and capex. It has filed preliminary papers with the SEBI.
The IPO will be a combination of fresh issuance of equity shares worth Rs 420 crore, and an offer-for-sale of Rs 325 crore worth shares by promoters, the Hegde family, as per the DRHP filed on May 22.
Further, the company may consider raising up to Rs 84 crore in pre-IPO round before filing the prospectus with the Registrar of Companies.
Founded in 1981, KSH International, which also claimed to be the largest exporter of magnet winding wires, operates business through its three manufacturing facilities in Pune and Raigad (Maharashtra) with annual installed capacity of 29,045 MT.
Additionally, the company in its draft papers said it has been building a fourth facility in Supa, Ahilyanagar (formerly Ahmednagar) in Maharashtra and phase I of the same is expected to commence operations in fiscal 2026.
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Magnet winding wires products are critical components in transformers, motors, alternators and generators used in several industries such as power, industrials, railways, automotives, home appliances, refrigeration and air conditioning.
KSH International supplies its products primarily to several original equipment manufacturers (OEMs) including Bharat Bijlee, Virginia Transformer Corporation, Bharat Heavy Electricals, Georgia Transformer Corporation, Hitachi Energy India, Siemens Energy India, GE Vernova T&D India, Transformers and Rectifiers India, TBEA, Toshiba Transmission & Distribution Systems (India), Meidensha Corporation, SGB-SMIT GmbH and Retrasib S.R.L, CG Power and Industrial Solutions, and Emirates Transformer & Switchgear.
The company plans to utilise nearly Rs 226 crore out of fresh issue proceeds for repaying debt which was Rs 360.9 crore as of April 21, 2025. Further, Rs 90 crore will be used for purchasing and setting up of new machinery for Supa and Chakan facilities, and Rs 10.4 crore for setting up rooftop solar power plant for power generation at Supa facility.
On the financials front, KSH International that competes with listed entities like Precision Wires India, and Ram Ratna Wires recorded healthy growth in the past years with profit in fiscal 2024 growing 40.3 percent to Rs 37.4 crore, and revenue increasing 31.8 percent to Rs 1,382.8 crore compared to previous financial year.
In the nine months period ended December 2024, the company already surpassed profit and topline numbers of of FY24 at Rs 49.5 crore and Rs 1,420.5 crore, respectively.
Nuvama Wealth Management, and ICICI Securities are appointed as the book running lead managers for KSH International IPO.
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