KSH International has completed preparations for its Initial Public Offering (IPO). The company filed its Draft Red Herring Prospectus (DRHP) with SEBI on May 22nd. Through this IPO, the company aims to raise approximately ₹745 crore, comprising ₹420 crore from fresh equity shares and ₹325 crore through an Offer For Sale (OFS). Nuvama Wealth Management and ICICI Securities are the book running lead managers for the IPO.
Company Plans and Fund Utilization
KSH International plans to utilize a significant portion of the funds raised through the IPO to reduce debt and expand its business:
- ₹226 crore will be used for debt repayment.
- ₹90 crore will be allocated to purchasing new machinery and setting up facilities in Supa and Chakan plants.
- ₹10.4 crore will be invested in establishing a solar energy plant.
- The remaining amount will be used for general corporate purposes and working capital.
KSH International: A Company with a Strong Foundation
- Incorporation: 1981
- Headquarters: Pune, Maharashtra
- Manufacturing Centers: Three manufacturing facilities in Pune and Raigarh, with a fourth unit under construction in Supa, Maharashtra
- Industry: Manufacturing of magnet winding wires (third largest company in India)
- Products: Wires for transformers, motors, generators, automotive components, home appliances, railways, industrial applications, and the power sector.
Key Clients
The company supplies its products to major brands and OEMs, including: Bharat Bijlee, Virginia Transformer Corporation, Bharat Heavy Electricals, Siemens Energy India, Hitachi Energy India, GE Vernova T&D India, Toshiba, Transformers and Rectifiers India, CG Power and Industrial Solutions, etc.
Financial Performance
- FY24 Profit: ₹37.4 crore (40.3% growth)
- FY24 Revenue: ₹1,382.8 crore (31.8% growth)
- April-December 2024 Profit: ₹49.5 crore
- April-December 2024 Revenue: ₹1,420.5 crore
Important Note for Investors
KSH International's IPO may present a significant opportunity for investors, particularly those seeking reliable companies in the manufacturing and industrial sectors. However, remember that IPO investments are subject to market risks. It is crucial to consult a financial expert before investing.
