KSH International Files DRHP with SEBI for ₹745 Crore IPO

Pune, Maharashtra-based KSH International, the third largest manufacturer of magnet winding wires in India, has filed its Draft Red Herring Prospectus (DRHP) with the SEBI to raise ₹745 crore through an Initial Public Offering (IPO). The equity shares are proposed to be listed on the BSE and NSE.

IPO Structure and Details

• As per the DRHP, the issue is a combination of the Fresh Issue worth ₹420 crores and the Offer for Sale (OFS) component of ₹325 crores. 
• The book-running lead managers for the IPO are Nuvama Wealth Management Limited and ICICI Securities Limited. 
• The company may consider a pre-IPO placement for up to ₹84 crores before filing the Red Herring Prospectus (RHP) with the Registrar of Companies (RoC). If the pre-IPO placement is completed, the amount raised will be reduced from the Fresh Issue. 

Utilisation of Funds

The company intends to use the net proceeds from the fresh issue towards the following objectives. 

• ₹225.98 crore towards repayment/prepayment of certain borrowings. 
• ₹90.06 crore to fund the capital expenditure for machinery purchase and installation: 
• Expansion at Supa Facility
• New machinery at Unit 2, Chakan (Pune, Maharashtra)
• ₹10.41 crore to install rooftop solar power plant at Supa Facility.
• General corporate purposes.

Financial performance

For the fiscal year 2024, KSH International reported revenue from operations of ₹138.28 crore, representing a robust growth of approximately 31.76% compared to ₹104.95 crore in fiscal 2023. The company also remained profitable during the year, posting a net profit of ₹3.74 crore.

Company Profile 

KSH International manufactures magnet winding wires, including round enamelled copper/ aluminium magnet winding wires, paper insulted rectangular copper/ aluminium magnet winding wires, etc. The company has been ranked the third-largest manufacturer (in terms of production capacity) and exporter (in terms of export revenues) of magnet winding wires in India. 

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