KP Green Engineering Limited IPO

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KP Green Engineering Limited, a subsidiary of the KP Group, encapsulates a comprehensive narrative of its inception, growth trajectory, diversified operations, and future aspirations. Founded and promoted by Dr. Farukbhai Gulambhai Patel, the KP Group has flourished since its establishment in 1994, now encompassing over 30 companies across India. This conglomerate has successfully diversified its operations into several key sectors, including fabrication and galvanizing, renewable energy (solar and wind power), telecommunications infrastructure, and the emergent fields of green hydrogen and ammonia. This diversification underlines the group’s commitment to sustainable and innovative solutions, reflecting a forward-thinking approach to addressing contemporary energy and infrastructure challenges.

Dr. Farukbhai Gulambhai Patel, with over 15 years of experience in the renewable energy sector, along with a board of directors and key managerial personnel, have been instrumental in steering the company’s growth and success. KP Green Engineering Limited, established in 2001, specializes in the manufacture of a wide array of fabricated and hot-dip galvanized steel products, serving various infrastructure needs. The company prides itself on offering tailored solutions through in-house capabilities in engineering, designing, fabrication, galvanization, and deployment, adhering to its motto, “A Company to Solve the Difficulties.”

The company is a recognized vendor for major electricity transmission corporations like GETCO and MSETCL, operating a state-of-the-art manufacturing facility in Vadodara, Gujarat. The facility is equipped with CNC machinery and boasts an ISO 9001:2015 certification, underscoring the company’s dedication to quality and customer satisfaction. KP Green Engineering Limited’s product and service portfolio is extensive, including lattice towers, substation structures, solar module mounting structures, and comprehensive services such as fault rectification for optical fiber cables, galvanizing job work, and solar installation services.

Looking ahead, the company is poised for expansion, with plans to increase its manufacturing capacity and introduce new products at a new plant in Bharuch. This expansion aims to cater to evolving market demands with offerings like high masts, floor gratings, pre-engineered buildings, and heavy fabrications. The business model is structured around two principal verticals: manufacturing of fabricated and galvanized products, and a service portfolio that includes optical fiber cable fault rectification, galvanizing services, and solar installation.

The vision, mission, and values of KP Green Engineering Limited reflect a deep commitment to powering India through nature, accelerating the adoption of renewable technology, and fostering an environmentally friendly and sustainable energy landscape. The company’s ethos is rooted in ethical practices, transparency, equal opportunity, respect for diversity and individuality, and a strong environmental consciousness. These principles not only guide the company’s operational strategies but also its contributions towards a more sustainable and equitable future.

Objects of the KP Green Engineering Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: i. Part finance the capital expenditure towards setting up a new manufacturing unit to expand its current production capabilities and expand the current product portfolio. ii. General Corporate Purposes.

KP Green Engineering Limited IPO Details:

Open Date: Mar 15 2024
Close Date: Mar 19 2024
Total Shares: 13,160,000
Face Value: ₹ 5 Per Equity Share
Issue Size: 189.50 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 137 - 144 Per Equity Share
Listing At: BSE SME
Listing Date: Mar 22 2024

Promoters And Management:

Dr. Farukbhai Gulambhai Patel, aged 51 years, is Promoter, Chairman & Non-Executive Director of the Company. He holds the Honorary degree of Doctorate in Innovation, Talent & Creativity Management from American East Coast University, New York, USA. He has also completed the comprehensive course in solar photovoltaic design, technology, and application from the Gujarat Energy Research and Management Institute. He was appointed as an Executive Director of the Company since incorporation. Thereafter, his designation is changed to Chairman and Non-Executive Director w.e.f. December 07, 2023. He has been associated with the Company since its inception and has over fifteen years of experience in the renewable energy sector. Mr. Muinulhaque Iqbalhusen Kadva, aged 32 years is a Whole Time Director of the Company. He has Completed his Bachelor of Engineering in Mechanical from Gujarat Technological University in 2014. He is appointed as Whole Time Director of the company for the period of five years w.e.f. December 06, 2023 and shall be liable to retire by rotation. He has been in associate with the company for more than 10 years and he oversees of the factory and manages the projects undertaken by the company and ensures the successful completion of such projects. Mr. Hassan Faruk Patel, aged 20 years is a Promoter and Non-Executive Director of the Company. He is pursuing his Bachelor of Administration from AURO University, Surat. He was appointed as Whole Time Director of the company for the period of five years w.e.f. December 07, 2023 then after his designation was changed to Non-Executive Director w.e.f. December 09, 2023 and shall be liable to retire by rotation. He is a fresher pursuing Bachelor of Business Adminstration.

Financials of KP Green Engineering Limited IPO:

Particulars ( In Lakhs )
Revenue from Operations 3,861 7,770 11,421 10,393
Other Income 22 72 58 20
Total Revenue 3,884 7,842 11,479 10,414
Cost of materials consumed 2,552 5,639 8,009 7,645
Employees Benefit Expenses 402 416 414 246
Other Expenses 366 784 897 723
EBITDA 564 1,004 2,159 1,800
Depreciation & Amortisation 116 136 152 87
Finance cost 232 258 346 196
EBIT 448 868 2,007 1,713
OPM (%) 14.52% 12.80% 18.81% 17.28%
PBT 216 609 1661 1518
Tax 58 155 421 391
PAT 158 454 1240 1127
NPM (%) 4.08% 5.79% 10.80% 10.82%
No.of Shares 500.00 500.00 500.00 500.00
EPS 0.31 0.90 2.47 2.25

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
KP Green Engineering Limited 114 12 2.47 58.1 144 720
Salasar Techno Engineering Ltd 1,005 40 0.25 70.7 22.9 3,615
Skipper Ltd 1,980 33 2.90 46.6 309 3,340
* All the data is as per FY23.

Recommendation on KP Green Engineering Limited IPO:

Lead Manager of KP Green Engineering Limited IPO:

  1. Beeline Broking Limited

Registrar of KP Green Engineering Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

KP Green Engineering Limited KP House', Near KP Circle, Opp. Ishwar Farm Junction BRTS Canal Road, Bhatar, Surat-395017 Phone: 0261 2244 757 Email: Website:

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