KSH International Ltd, a leading magnet winding wire manufacturer, has filed its Draft Red Herring Prospectus (DRHP) with SEBI to launch a ₹745-crore initial public offering (IPO). The IPO comprises a fresh issue of ₹420 crore and an offer-for-sale (OFS) of ₹325 crore by promoters.
IPO Fund Utilization and Expansion Plans
The company plans to utilize the net proceeds from the fresh issue for:
- ₹225.98 crore for debt repayment.
- ₹90.06 crore to set up new machinery at its Supa facility and Chakan unit in Pune.
- ₹10.41 crore for a rooftop solar power plant at the Supa facility.
- Remaining funds for general corporate purposes.
Company Overview and Market Presence
Founded in 1981, KSH International operates three manufacturing facilities in Chakan and Taloja, Raigad, with a fourth facility in Supa expected to commence operations in FY26. The company exports its products to 24 countries, including the US, UAE, Germany, and Japan.
Financial Performance and Growth Outlook
KSH International’s revenue surged to ₹1,382.82 crore in FY24, marking a 32% YoY growth, while its net profit increased to ₹37.35 crore. With its Supa expansion, the company aims to double its production capacity from 29,045 MT to 59,045 MT over the next two years.
IPO Listing and Lead Managers
The equity shares will be listed on NSE and BSE, with Nuvama Wealth Management and ICICI Securities serving as book-running lead managers.
