KSH International files for ₹745 cr IPO to fund expansion and debt repayment.

KSH International has filed a ₹745 crore IPO to fund expansion and debt repayment. The company plans to use ₹225.98 crore to pay off debt, ₹90.06 crore to set up new machinery, and ₹10.41 crore for a rooftop solar power plant. KSH International operates three manufacturing facilities in India and exports to 24 countries, with a significant global footprint. The company's revenue from operations increased to ₹1,382.82 crore in FY24, up from ₹1,049.46 crore in the previous year.

Pune-based KSH International, a manufacturer of magnet winding wires, has filed preliminary papers with the Securities and Exchange Board of India (SEBI) seeking approval for a ₹745-crore initial public offering (IPO). The IPO comprises a fresh issue of shares worth ₹420 crore and an offer-for-sale of stocks valued at ₹325 crore by promoters [2].

The proceeds from the fresh issue, amounting to ₹225.98 crore, will be used to pay off debt, while ₹90.06 crore will be allocated for setting up new machinery at its Supa facility and Chakan, Pune. Additionally, ₹10.41 crore will be used to establish a rooftop solar power plant at its Supa facility [2].

KSH International, part of the KSH group, commenced operations in 1981 in Raigad, Maharashtra, and has since diversified its operations to manufacturing various types of standard and specialized magnet winding wires. The company markets its products through the 'KSH' brand, which enjoys strong brand recall and reputation in the industry [2].

The company has a significant global footprint, exporting its products to 24 countries, including the US, UAE, Kuwait, Romania, Saudi Arabia, Germany, Oman, Spain, Bangladesh, and Japan [2]. It operates three manufacturing facilities, with an upcoming fourth facility in Supa, Ahilyanagar (formerly Ahmednagar), expected to commence operations in FY26.

According to a CARE report, KSH International's capacity is expected to more than double from 29,045 MT as of December 31, 2024, to 59,045 MT over the next two years with the Supa expansion [2]. The company's revenue from operations increased to ₹1,382.82 crore in FY24 from ₹1,049.46 crore in the preceding financial year, while profit after tax grew to ₹37.35 crore from ₹26.61 crore [2].

Nuvama Wealth Management and ICICI Securities are the book-running lead managers, while MUFG Intime India is the registrar of the issue. The equity shares are proposed to be listed on the NSE and BSE.

References:
[1] https://money.rediff.com/news/author/rediff%20money%20desk
[2] https://www.business-standard.com/pti-stories/national/pune-based-ksh-international-files-draft-papers-for-rs-745-crore-ipo-125052400316_1.html