KP Green Engineering makes a strong debut on SME BSE, lists at 38% premium to issue price

KP Green Engineering is a manufacturer of fabricated and hot-dip galvanised steel products

Steel products maker KP Green Engineering made a solid debut on SME BSE on March 22 as the stock listed at 38 percent premium at Rs 200 against the issue price of Rs 144.

The Rs 189.5-crore offer, purely a fresh issue of Rs 1.31 crore shares, was subscribed 20 times. It company plans to utilise the proceeds for capital expenditure and general corporate purposes.

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KP Green's offers was the biggest-ever IPO in the SME segment followed by Spectrum Talent Management's Rs 105 crore offer and Aashka Hospitals' Rs 101.6 crore.

KP Green Engineering makes fabricated and hot-dip galvanised steel products. It offers end-to-end solutions by providing in-house fabrication and hot dip galvanising facilities for custom made-solutions.

The company, which has a manufacturing facility in Vadodara, is planning to set up a new plant in Bharuch to introduce new line of products including high masts, floor gratings, pre-engineered buildings and heavy fabrications.

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For FY 23, the company recorded standalone net profit of Rs 12.4 crore, up from Rs 4.5 crore in previous year. Revenue grew to Rs 114.2 crore from Rs 77.7 crore.

The company has already closed in on these numbers in the current financial year. Its net profit for the six- month period ending September 30 was at Rs 11.3 crore on revenue of Rs 103.93 crore.

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