KP Green Engineering Ltd. IPO: Review, Valuation, Date & GMP

KP Green Engineering Limited IPO  - Complete Overview

Established in 2001, KP Green Engineering Limited specializes in the manufacturing of fabricated and hot-dip galvanized steel products. 

Its diverse product range includes Lattice tower structures, Substation Structures, Solar Module Mounting Structures, Cable trays, Earthing strips, Beam Crash Barriers, and various other infrastructure solution products. 

The company distinguishes itself by offering in-house fabrication and Hot Dip Galvanizing facilities, allowing for tailor-made solutions for clients and comprehensive services from engineering and designing to fabrication, galvanization, and deployment. 

Operating from its manufacturing facility in Dabhasa, Vadodara – 391440, Gujarat, spanning 200,000 sq. ft. and fully equipped with CNC machinery and equipment.

KP Green Engineering Limited upholds ISO 9001:2015 certification, underscoring its commitment to delivering quality products and services. 

The company is poised for expansion, both within its existing line of business and through the introduction of new products, with plans for a new manufacturing plant in Matar, Bharuch, with a capacity exceeding 2,90,000 MT. 

As of September 30, 2023, the company has achieved a revenue of Rs. 10,413.64 Lakhs.

 

KP Green Engineering Limited IPO Overview

KP Green Engineering Limited IPO date is slated to be open for subscription from March 15, 2024, to March 19, 2024. This BSE SME IPO follows a Book Built Issue IPO.

KP Green Engineering Limited IPO price is set in the range of Rs.137 to Rs.144 per share. 

The total issue size of this IPO amounts to Rs.189.50 Cr. The company has allocated 35% to retail investors, 50% to institutional and 15% to non-institutional investors.

 

Company Financial

Compared to 31 Mar 2023, KP Green Engineering Limited has seen growth in total assets but a decrease in total revenue. The profit after tax has decreased.

(Amount in Lakhs)

Period	30 Sep 2023	31 Mar 2023
Total Assets	13,635.62	9,506.65
Total Revenue	10,413.64	11,478.50
PAT	1,126.64	1,239.45
Reserve & Surplus	2,624.03	3,177.38

Segment-wise Revenue Break up

(Amount in Lakhs)

Particulars	Period Ended on 30 Sep 2023	FY 23	FY 22
Sale of products	10,243.86	9,995.26	7,471.92
Sales of Services	149.37	1,425.62	298.24
Total	10,393.23	11,420.89	7,770.16

 

 

Product-wise Revenue Break up

(Amount in Lakhs)

Particulars	Period Ended on 30 Sep 2023	FY 23	FY 22
Lattice Tower and Sub-Station Structure	3,539.05	4,104.16	3,161.44
Solar MMS Structure	4,540.38	4,095.01	1,931.02
Cable Tray and Earthing Material	577.7	1,196.99	1,211.99
Beam Crash Barrier	623.22	0	0
Galvanizing Job Work	149.34	188.36	112.96
Isolator	18.3	94.6	0
FRT	142.41	287	268
Rooftop, Power Units and Others	242	235	87
Others	560.83	1,219.76	997.74
Total	10,393.23	11,420.89	7,770.16

Geography-wise Revenue Break up

(Amount in Lakhs)

Particulars	Period Ended on 30 Sep 2023	FY 23	FY 22
Gujarat	10,295.78	10,332.73	7,629.58
Karnataka	0	57.59	27.05
Madhya Pradesh	0	4.32	5.19
Maharashtra	95.87	127.5	105.34
Punjab	0	637.98	0
Uttar Pradesh	1.58	260.77	1.98
Odisha	0	0	0.56
Tamil Nadu	0	0	0.46
Delhi	0	0	0
Haryana	0	0	0
Rajasthan	0	0	0
Total	10,393.23	11,420.89	7,770.16

 

The Objective of the Issue

The proceeds from the Fresh Issue will be allocated towards the following objectives:

1. Partially financing the capital expenditure required to establish a new manufacturing unit, aiming to enhance the company's existing production capabilities and expand its current product portfolio.

2. General corporate purposes.

 

 

Peers of KP Green Engineering Limited IPO

Name of the Company	Face Value (₹)	EPS (₹)	P/E Ratio
KP Green Engineering Limited	5.00	3.46	-
Salasar Techno Engineering Ltd	1.00	1.32	30.23
Skipper Ltd	1.00	3.19	30.20

 

Evaluation

The IPO is priced within the range of Rs.137 to Rs.144 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 3.36 from the last year, the resulting P/E ratio is 42.8x.

• Taking into account the weighted EPS of Rs 1.72 for the last three years, the P/E ratio amounts to 83.72x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 30.22x.

As a result, the IPO price range, with a P/E ratio ranging from 42.8x to 83.72x, seems overvalued to the industry average of 30.22x.

 

IPO's Strengths 

• Founder-led company backed by a seasoned and professional leadership team.

• Strong execution capabilities.

• Maintains consistent financial performance, showcasing financial strength.

 

IPO Weaknesses 

• The company faces ongoing litigation, and an unfavourable resolution could impact its business adversely.

• Revenue is significantly influenced by the geographical region of Gujarat.

• The company relies on a limited number of customers for sales.

• Negative cash flow was observed from operating activities in the recent financial year.

• Various approvals and licenses are necessary for the company's regular operations.

• The sole subsidiary, "KPzon Energia Private Limited," experienced losses in the Financial Year 2022-23.

 

IPO GMP Today 

The Latest GMP of AVP Infracon Limited is Rs.13.

KP Green Engineering Limited IPO timetable (Tentative)

KP Green Engineering Limited IPO is scheduled from March 15 to March 19, 2024, with allotment on March 20, refund initiation on March 21, and listing on March 22, 2024.

Events	Date
IPO Opening Date	March 15, 2024
IPO Closing Date	March 19, 2024
IPO Allotment Date	March 20, 2024
Refund initiation	March 21, 2024
IPO Listing Date	March 22, 2024

 

 

KP Green Engineering Limited IPO Details 

KP Green Engineering Limited IPO, with a face value of Rs.5 per share, opens on March 15 and closes on March 19, 2024, offering 13,160,000 shares at Rs.137 to Rs.144 per share, with a lot size of 1000 shares, aiming to raise Rs.189.50 Cr, and will be listed on BSE SME.

IPO opening & closing date	March 15, 2024 to March 19, 2024
Face value	₹5 per share
Issue Price	₹137 to ₹144 per share
Lot Size	1000 Shares
Price of 1 lot	₹144,000
Issue Size	13,160,000 shares (aggregating up to ₹189.50 Cr)
Fresh issue	13,160,000 shares (aggregating up to ₹189.50 Cr)
Listing at	BSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd.

KP Green Engineering Limited IPO Lot Details 

For KP Green Engineering Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1000 shares) at Rs.144,000 while for HNI investors, the minimum investment is 2 lots (2000 shares) at Rs.288,000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

 

 

KP Green Engineering Limited IPO Reservation

Institutional share Portion	50%
Non-institutional share Portion	15%
Retail share Portion	35%

 

Promoters and Management of KP Green Engineering Limited

• Dr. Farukbhai Gulambhai Patel 

• Mr. Hassan Faruk Patel

Pre-issue Promoter shareholding	90.37%
Post-issue Promoter shareholding	66.59%

 

KP Green Engineering Limited IPO Lead Managers:

• Beeline Capital Advisors Pvt Ltd
  
  

 

 

Dividend Policy

The company hasn't issued any dividends in past fiscal years. Future dividends will depend on the company's financial performance.

Conclusion

KP Green Engineering Limited presents an appealing investment opportunity to investors. With a robust order book and a positive trajectory in financial performance, the company is poised for growth. Investors are encouraged to consider applying for the upcoming IPO after conducting a thorough evaluation of all relevant factors.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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