Investing in an IPO (Initial Public Offering) requires careful consideration and analysis, especially when it comes to companies like KP Green Engineering Limited. This article delves into the various aspects of KP Green Engineering IPO, including its GMP (Grey Market Premium), key details, and whether it presents a favorable investment opportunity.
Understanding KP Green Engineering IPO
What is an IPO?
An IPO marks the first time a company offers its shares to the public. It’s a significant event for the company as it transitions from being privately held to publicly traded.
KP Green Engineering IPO Overview
KP Green Engineering Limited, also known as KPGEL, is set to launch its IPO, which is classified as a book-built issue. The IPO is sized at a total of 189.50 crore, with the company issuing 13.16 million fresh shares.
Key Dates and Figures
- IPO Start Date: 15th March 2024
- IPO End Date: 19th March 2024
- Price Band: ₹137-144 per share
- Lot Size: 1000 shares
- Total Issue Size: 13,160,000 shares
- Shares Allotment Date: Wednesday, 20th March 2024
- Refund Date: Friday, 21st March 2024
- Demat Transfer: Friday, 21st March 2024
- Listing Date: Friday, 22nd March 2024
- UPI Cut Off Time: 5 pm, 19th March 2024
- Listing Exchange Name: BSE, SME
Company Background
KP Green Engineering Limited is promoted by Farukbhai Gulambhai Patel and Hasan Faruk Patel. Established in July 2001, the company specializes in the fabrication of steel products. Its portfolio includes lattice tower structures, substation structures, solar module mounting structures, cable trays, earthing strips, among others.
Financial Insights
Financial Performance
- As of 30th September 2023:
- Revenue: ₹710.97 lakhs
- Net Profit after Tax: ₹1,126.64 lakhs
- Assets: ₹13,635.62 lakhs
- As of 31st March 2023:
- Revenue: ₹11,478.50 lakhs
- Net Profit after Tax: ₹1,239.45 lakhs
- Assets: ₹9,506.65 lakhs
Return on Equity (ROE) and Return on Capital Employed (ROCE)
The company boasts a healthy ROE of 29.24% and ROCE of 23.05%, indicating efficient utilization of capital and strong profitability.
Grey Market Premium (GMP) Analysis
KP Green Engineering IPO GMP
The Grey Market Premium for KP Green Engineering IPO has witnessed a decline. As of the latest update, the GMP stands at ₹60. This figure is crucial as it reflects investor sentiment and potential listing gains.
Is KP Green Engineering IPO a Good Investment?
The decline in GMP raises questions about the attractiveness of the IPO. While KP Green Engineering Limited is a profitable company, the potential for listing gains hinges on the improvement in its GMP. Generally, IPOs with GMPs lower than 50% are considered less favorable. Investors may want to monitor the demand and GMP post-listing before making investment decisions.
