SMPP has filled a draft red herring prospectus with Securities Board of India to raise Rs 4,000 crore via initial public offering.
The issue consists of a fresh issue of Rs 580 crore and an offer for sale of upto Rs 3,420 crore by its promoter Shiv Chand Kansal. Currently Kansal holds 50 percent stake in the firm.
The proceeds from the fresh issue will be used for setting ammunition manufacturing facility for its arm SMPP Ammunition Pvt Ltd.
Axis Capital, ICICI Securities, IIFL Securities, JM Financial, Motilal Oswal Investment Advisors are the lead manager to the issue.
The company is an Indian designer and manufacturer of defense equipment, specializing in ammunition components, personal protection products, and protection kits for land, air, and sea platforms.
It offers critical products for armed forces, police, paramilitary, and security agencies, including combustible cartridge cases, bullet-resistant jackets, armor plates, ballistic helmets, and vehicle protection kits. With an annual capacity of 408,000 protection products and 120,000 ammunition components as of June 30, 2024, its mission is to ensure user safety in high-risk situations.
In June 2024 quarter, the firm reported revenue of Rs 145.77 crore against Rs 52.54 crore a year ago. Net profit for the quarter was at Rs 42.59 crore versus Rs 9.21 crore last year
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