KP Green Engineering shares list at 39% premium on BSE SME platform

The , which was by far the largest in the SME segment this year, received decent response from investors with an overall subscription of over 20 times at close.

The issue was entirely a fresh equity sale of 1.31 crore shares and through the offer, the company raised around Rs 189 crore.

The net proceeds from the public offer will be used for part financing the capital expenditure, general corporate purposes and issue expenses.

Incorporated in 2001, the company manufactures fabricated and hot-dip galvanized steel products. Its 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.

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KP Green Engineering is further planning to expand into its existing line of business along with addition of new products to the portfolio at its new manufacturing plant proposed to be set up at Bharuch.

The new facility will have a capacity of more than 2,90,000 MT, a substantial increase from the current capacity of 53,000 MT at the existing plant. In addition to the product offerings, it is planning to introduce a new line of products including high masts, floor gratings, pre-engineered buildings and heavy fabrications to meet evolving market demands.

India is the world’s second-largest producer of crude steel, with an output of 125.32 MT of crude steel and finished steel production of 121.29 MT in FY23. India’s steel production is estimated to grow 4-7% to 123-127 MT in FY24.

For the period ended September 2023, the company clocked revenues of Rs 74 crore and net profit of Rs 8.55 crore.

Beeline Capital Advisors acted as the lead manager to the issue and Bigshare Services was the registrar.

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