Kent RO Systems IPO: All You Need to Know About the Public Offering
Kent RO Systems Ltd, known for its water purifiers, has filed initial documents with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO).
IPO Details
The IPO will be entirely an offer for sale (OFS) of 1 crore equity shares by the company's promoters. The promoters, Sunita Gupta, Mahesh Gupta, and Varun Gupta, currently own 99.77% of the company's shares and will be selling their stake through this OFS. Since the IPO is an OFS, Kent RO Systems will not receive any financial proceeds from it.
Mahesh Gupta will be selling the largest portion of shares, with 56,35,088 equity shares. Sunita Gupta and Varun Gupta will be selling 33,60,910 and 10,98,570 equity shares, respectively.
The main objective of the IPO is to list Kent RO Systems' equity shares on stock exchanges. This is expected to enhance the company's public profile and visibility.
Business Overview
Kent RO Systems is involved in the manufacturing and sale of water purifiers, water softeners, kitchen appliances, and home appliances under the "Kent" brand. They also manufacture brushless direct current (BLDC) fans under the "Kuhl" brand. Kent is recognized as a pioneer in introducing reverse osmosis (RO) technology in the Indian water purifier market.
The company has four manufacturing units, with one located in Roorkee, Uttarakhand, and three in Noida, Uttar Pradesh.
Water purifiers account for 85% of Kent's total revenue during the first quarter of the financial year 2024-25.
Financials
In FY23-24, the company's revenue stood at ₹1,178.19 crores, reflecting an 8.65% increase from ₹1,084.39 crores in FY22-23. Profit After Tax (PAT) showed significant growth, rising by 71.41% to ₹166.55 crores in FY23-24, compared to ₹97.16 crores in the previous year.
Key Players in the IPO Process
Motilal Oswal Investment Advisors and JM Financial have been appointed as the book-running lead managers for this IPO. Kfin Technologies Ltd will serve as the registrar for the issue. These entities will play important roles in ensuring the smooth execution of the IPO process.
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