KP Green Engineering
Book Building issueSME₹190 Cr issue
+38.89%
Listing gain over issue price
Issue size
₹190 Cr
1 lot at cut-off
₹1,44,000
Lot size
1,000shares
Open
15 Mar 2024
Close
19 Mar 2024
Allotment
20 Mar 2024
Listing
22 Mar 2024
Listing performance
Issue price
₹144
Listed at
₹200
Listing-day close
₹210
Latest price
₹265.10
Close on 23 Oct 2026
Listing gain
+38.89%
Return since issue
+84.10%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 15 Mar 2024 – 19 Mar 2024
- Listing date
- 22 Mar 2024
- Face value
- ₹5 per share
- Issue price
- ₹144 per share
- Lot size
- 1,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹190 Cr
- Market cap at offer price
- ₹720 Cr
- Promoter holding
- 90.37% → 66.59% pre-issue → post-issue
- ISIN
- INE0QVH01025
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- KP House', Near KP Circle, Opp.Ishwar Farm Junction BRTS, Canal Road, Bhatar, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 37,50,000 | — | — |
| Market maker | 6,58,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹144
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,44,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,88,000 |
| S-HNI (max) | 6 | 6,000 | ₹8,64,000 |
| B-HNI (min) | 7 | 7,000 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
37,50,000
Anchor portion
₹54 Cr
at ₹144 per share
Valuation and performance
Valuation at offer price
₹144 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.36 | 4.51 |
| P/E (×) | 42.86 | 31.93 |
| Price to book (×) | 11.69 | — |
| Market cap | — | ₹720 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 25.51%
- ROCE
- 23.05%
- Debt / equity
- 1.11
- PAT margin
- 10.84%
- NAV per share
- ₹12.32
- Price to book
- 11.69
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About KP Green Engineering
KP Green Engineering Limited, incorporated in 2001 as K P Buildcon Private Limited, is a manufacturer of fabricated and hot-dip galvanized steel products. The company operates a 200,000 sq. ft. manufacturing facility in Dabhasa, Vadodara, Gujarat, equipped with CNC machinery. Its diverse product portfolio includes Lattice Towers Structures, Substation Structures, Solar Module Mounting Structures, Cable trays, Earthing strips, and Beam Crash Barriers. The company provides end-to-end solutions through in-house fabrication and hot-dip galvanizing facilities, enabling tailormade solutions to clients. It is an accredited vendor with GETCO (up to 400 KW) and MSETCL (up to 220 KW). The company also provides Fault Rectification Services for Optical Fiber Cables, job work for galvanizing, and solar installation services. The company is ISO 9001:2015 certified.
Company Analysis
from RHPKP Green Engineering manufactures fabricated and hot-dip galvanized steel products including lattice towers, substation structures, solar mounting structures, and cable trays for the infrastructure and energy sectors.
KP Green Engineering Limited, incorporated in 2001 as K P Buildcon Private Limited, is a manufacturer of fabricated and hot-dip galvanized steel products. The company operates a 200,000 sq. ft. manufacturing facility in Dabhasa, Vadodara, Gujarat, equipped with CNC machinery. Its diverse product portfolio includes Lattice Towers Structures, Substation Structures, Solar Module Mounting Structures, Cable trays, Earthing strips, and Beam Crash Barriers. The company provides end-to-end solutions through in-house fabrication and hot-dip galvanizing facilities, enabling tailormade solutions to clients. It is an accredited vendor with GETCO (up to 400 KW) and MSETCL (up to 220 KW). The company also provides Fault Rectification Services for Optical Fiber Cables, job work for galvanizing, and solar installation services. The company is ISO 9001:2015 certified.
Steel and metal fabricationInfrastructure solutionsEnergy transmissionRenewable energy (solar)Telecommunications (fiber optic services)
Objects of the Issue
- Part Finance the capital expenditure towards setting up of a new manufacturing unit to expand its current production capabilities as well as expanding our current product portfolio ₹15,614.47 Lakhs p.24
- General Corporate Purpose [●]* p.24
- Part finance the capital expenditure towards setting up of a new manufacturing unit to expand its current production capabilities as well as expanding our current product portfolio ₹15,614.47 Lakhs p.96
- General Corporate Purposes [●] p.96
- Capex for the new manufacturing facility at Matar, Bharuch p.142
- Not specified in this part of the document
- Not specified in this part of the document
- Not specified in this part of the document
Issue Structure
- Total Issue
- 13,160,000 Equity Shares aggregating to ₹ [●] Lakhs
- Fresh Issue
- 13,160,000 Equity Shares of face value of ₹ 5/- each
- Offer for Sale
- Nil
- Price Band
- [●] per Equity Share (Floor Price) to [●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹ 5/- each
Business Model
The company manufactures and sells fabricated and hot-dip galvanized steel products to customers in infrastructure, transmission, and renewable energy sectors. Revenue is earned through sale of products (98.56% of total revenue for period ended September 30, 2023) and services including fault rectification services, job work for galvanizing, and solar installation services (1.44% of revenue).
Business Segments
Manufacture of lattice towers, substation structures, solar module mounting structures, cable trays, earthing strips, beam crash barriers and other infrastructure solution products using CNC machinery and hot-dip galvanizing facilities
Provision of Fault Rectification Services (FRT) for Optical Fiber Cables to telecom operators, job work for galvanizing, and solar installation services
Transmission line towers for electrification projects transmitting power from power generating units to Substations; Wind Mill lattice towers as support structures for bottom-fixed wind turbines; Substation structures for high-voltage electric systems; Telecom lattice towers supporting antennas and communication equipment for wireless networks
Solar Panel Module Mounting Structures required for SPV Power Plant Projects; manufacturing hot dip galvanized solar structures as well as galvalume sheet and pre-galvanized structures
Galvanizing protects from rust by forming a barrier that prevents corrosive substances from reaching underlying steel or iron, with zinc serving as a sacrificial anode
Windmill tubular poles are crucial components in wind turbine construction, supporting the nacelle and blades at elevated height to optimize wind energy capture
Additional product lines being introduced at the new manufacturing facility to meet evolving market demands
Manufactures Lattice Tower Structures, Substation Structures, Solar Module Mounting Structures, Cable Trays, Beam Crash Barriers, Galvanized Earthing Strips and Roofing Channels through in-house fabrication and hot-dip galvanizing facilities.
Provides Fault Rectification Services for Optical Fiber Cables to telecom service providers, Galvanizing Job Work services, and Solar Rooftop Installation Services.
Manufacturing and sale of lattice towers and substation structures for telecom and power infrastructure
Manufacturing and sale of solar mounting structures and related components
Manufacturing and sale of cable trays and earthing strips for electrical installations
Manufacturing and sale of W Beam crash barriers for highway safety
Providing galvanizing services for steel structures and components
Providing fault rectification and patrolling services for optical fiber cables
Manufactures fabricated and hot-dip galvanized steel products including Lattice Towers Structures, Substation Structures, Solar Module Mounting Structures, Cable trays, Earthing strips, Beam Crash Barriers and other infrastructure solution products with in-house fabrication and Hot Dip Galvanizing facilities.
Provides Fault Rectification Services (FRT) w.r.t. Optical Fiber Cables to various telecom service providers, Galvanizing services on Job work basis, and solar rooftop installation services.
Design, manufacture and supply of transmission line towers, sub-station structures, lattice towers, GI structural materials, earthing electrodes and GI strips
Manufacture of MMS structures for solar and wind mills, wind mill towers, and related steel structures for renewable energy projects
Manufacture and supply of isolators (disconnectors), pipe structures, cable trays and accessories for electrical and telecom applications
SWOT Analysis
Strengths
- • ISO 9001:2015 certified with in-house quality control and fabrication facilities(p.23)
- • Accredited vendor with major transmission utilities (GETCO, MSETCL)(p.23)
- • Modern manufacturing facility with CNC machinery and 200,000 sq. ft. capacity(p.23)
- • Integrated end-to-end solutions from engineering to deployment(p.23)
- • Revenue growth trajectory with consistent year-on-year increases(p.35)
- • Established manufacturing capability with in-house facilities(p.95)
- • ISO 9001:2015 certification demonstrating quality standards(p.95)
- • Accredited vendor status with major transmission corporations(p.95)
- • Strong profitability metrics with 37.68% Return on Net Worth(p.114)
- • High gross profit margin of 29.88% in FY2023(p.116)
- • Founder-led company with experienced leadership team in renewable energy sector(p.155)
- • Strong execution capabilities with modern manufacturing facility and expanding capacity(p.155)
- • Consistent strong financial performance with CAGR growth in revenue and profitability(p.155)
- • In-house integrated fabrication and hot-dip galvanizing capabilities enabling end-to-end solutions(p.142)
- • Accredited vendor status with major transmission authorities in Gujarat and Maharashtra(p.142)
- • ISO 9001:2015 certification demonstrating quality standards and customer satisfaction(p.142)
- • Substantial order book value indicating strong market demand(p.155)
- • Experienced leadership with 15+ years in renewable energy sector(p.185)
- • Diversified business operations across multiple renewable and infrastructure segments(p.215)
- • Strong revenue growth trajectory with consistent profitability(p.213)
- • Established subsidiary company in renewable energy generation(p.182)
- • Board composition includes independent directors with relevant expertise(p.185)
- • In-house fabrication and galvanizing facilities enabling tailored solutions(p.309)
- • Strong profitability with 25.51% RoE and improving margins(p.299)
- • Accredited vendor status with major transmission corporations(p.309)
- • ISO 9001:2015 certification demonstrating quality capabilities(p.309)
- • Significant revenue growth of 46.98% in FY 2022-23(p.313)
- • Well-equipped manufacturing facility with CNC machinery(p.309)
- • Clean litigation history for the company itself(p.322)
- • No wilful defaulter or SEBI debarment(p.322)
- • Strong financial performance of group companies(p.346)
- • Promoter holds significant equity in group companies(p.346)
Weaknesses
- • High customer concentration with top 10 customers representing 71.70% of revenue(p.35)
- • High supplier concentration with top 10 suppliers representing 77.75% of purchases(p.36)
- • Heavy geographical concentration with 99.06% revenue from Gujarat state(p.35)
- • Negative cash flow from operations in recent year (₹-1,899.90 Lakhs for Sept 2023)(p.37)
- • Single manufacturing facility with no backup operational capacity(p.37)
- • Outstanding litigation and contingent liabilities of ₹1,379.88 Lakhs(p.34)
- • Substantial debt of ₹4,895.34 Lakhs exposing company to refinancing and interest rate risks(p.44)
- • Inexperience in manufacturing new product categories (High Masts, Floor Gratings, Pre-Engineered Buildings)(p.38)
- • Negative operating cash flow of ₹1,899.90 Lakhs in 9M FY2024(p.116)
- • High customer concentration with top 1 customer contributing 23.87% of revenue(p.117)
- • Low capacity utilization of 19.53% in 9M FY2024(p.117)
- • Significant increase in short-term borrowings to ₹2,881.16 Lakhs as at Sept 30, 2023(p.57)
- • Substantial increase in trade receivables to ₹5,578.35 Lakhs from ₹1,655.48 Lakhs(p.57)
- • High customer concentration with top customer contributing nearly 24% of revenue(p.147)
- • Significant dependence on renewable energy sector customers, particularly solar installation segment(p.146)
- • Capacity utilization relatively low at 19.53% for nine months ended September 2023(p.147)
- • Geographic concentration with 99.06% of revenue from Gujarat as of September 2023(p.146)
- • Negative operating cash flows in the nine-month period ended September 2023(p.147)
- • High dependence on a concentrated customer base(p.181)
- • Significant outstanding litigation affecting asset valuation(p.219)
- • High leverage with significant short-term borrowings(p.229)
- • Relatively young and inexperienced managing director(p.189)
- • Substantial portion of aged receivables outstanding(p.237)
- • Heavy dependence on limited number of customers(p.319)
- • High debt-to-equity ratio of 1.11 as of September 30, 2023(p.321)
- • Dependence on limited number of suppliers(p.319)
- • Significant outstanding litigation over disputed property advance(p.286)
- • Working capital strain with negative operating cash flow in H1 FY2024(p.316)
- • Multiple pending tax litigations against the company(p.323)
- • Ongoing workmen compensation litigation(p.323)
- • Significant pending property/contract disputes(p.324)
- • Criminal litigation against promoter(p.325)
- • GST notice against company(p.323)
- • Multiple GST notices against group companies(p.328)
Opportunities
- • Expansion to new manufacturing facility at Matar, Bharuch with 2,94,000 MT capacity(p.38)
- • Portfolio expansion into High Masts, Floor Gratings, Pre-Engineered Buildings and Heavy Fabrications(p.38)
- • Strong Indian economic growth and steel consumption correlation with GDP(p.24)
- • India positioned as fastest-growing major economy with infrastructure development momentum(p.23)
- • India's second-largest crude steel producer status with growing market share(p.24)
- • Government focus on infrastructure and asset-building projects increasing growth multipliers(p.23)
- • Expansion into new product categories including High Masts, Floor Gratings, Pre-Engineered Buildings(p.99)
- • Significant capacity increase from 53,000 MT to 294,000 MT through new manufacturing unit(p.99)
- • Growing Indian steel production estimated at 4-7% to 123-127 MT in FY24(p.98)
- • India is second-largest crude steel producer with strong industry fundamentals(p.98)
- • Strategic expansion into renewable energy segment through Solar Module Mounting Structures(p.99)
- • Planned expansion with new manufacturing facility of 2,90,000 MT capacity(p.155)
- • Plans to introduce new high-value products including High Masts, Floor Gratings and PEB(p.155)
- • Growth in renewable energy sector driven by government initiatives and net-zero commitments(p.133)
- • Rising steel consumption in growth-driving sectors including infrastructure and housing(p.141)
- • Government focus on renewable energy with target of 40% energy from non-fossil sources by 2030(p.133)
- • Infrastructure development through National Infrastructure Pipeline with 89,151 projects under implementation(p.134)
- • Expansion into green hydrogen and ammonia technology(p.183)
- • Growing renewable energy sector with multiple service lines(p.183)
- • Expansion into EV charging infrastructure(p.183)
- • Telecom infrastructure development and 5G rollout opportunities(p.183)
- • Infrastructure industry tailwind supporting business expansion(p.313)
- • Geographical diversification beyond primary Gujarat market(p.313)
- • Growing renewable energy sector demand for solar mounting structures(p.309)
- • Service portfolio expansion through FRT and solar installation services(p.310)
- • Capacity utilization improvement driving margin expansion(p.313)
- • Listed group companies with established market presence(p.351)
- • Strong revenue growth in group companies(p.346)
Threats
- • Global economic slowdown and reduced emerging market growth forecast to 3.4% (2020-2024)(p.22)
- • Persistent elevated global inflation expected to remain above central bank targets through 2024(p.23)
- • Intense competition from domestic and international competitors in steel and metal industries(p.47)
- • Foreign exchange fluctuation risk for ₹5,339.19 Lakhs of imported plant and machinery(p.36)
- • Machine price inflation risk with ₹14,114.47 Lakhs machinery quotations expiring(p.36)
- • Environmental compliance and pollution control regulations becoming increasingly stringent(p.51)
- • Floating interest rate debt exposure amid rising interest rate environment(p.48)
- • COVID-19 pandemic and potential future pandemics disrupting operations and supply chains(p.49)
- • Changes in government tax policy and GST implications affecting product pricing(p.51)
- • Risk of regional economic volatility and adverse policy changes in Gujarat affecting core revenue(p.35)
- • Execution risks for proposed new manufacturing unit project with multiple dependencies(p.38)
- • No definitive vendor agreements for plant and machinery procurement(p.109)
- • Commodity price volatility affecting zinc and steel costs(p.106)
- • Dependence on few key customers creating concentration risk(p.117)
- • Regulatory approvals pending for land conversion and environmental clearances(p.107)
- • High level of stainless steel imports (~20% of domestic market) causing price pressure and capacity underutilization(p.139)
- • Dumping of steel products through ASEAN countries circumventing anti-dumping duties(p.139)
- • Global economic slowdown affecting demand for infrastructure and renewable energy projects(p.128)
- • Rising protectionist trade measures and geopolitical tensions impacting global supply chains(p.129)
- • Raw material cost volatility and supply chain pressures in steel sector(p.170)
- • Global trade growth slowdown forecast from 6% in 2022 to 1.7% in 2023(p.130)
- • Competition from established players in renewable energy and telecom infrastructure(p.181)
- • Interest rate volatility affecting borrowing costs(p.229)
- • Commodity price volatility for steel and raw materials(p.240)
- • Regulatory and policy changes in renewable energy sector(p.183)
- • Project execution delays and supply chain disruptions(p.181)
- • Competition from existing and potential competitors(p.319)
- • Volatility in raw material costs affecting margins(p.318)
- • Interest rate risk exposure from significant outstanding debt(p.318)
- • Natural calamities and pandemic risks affecting operations(p.310)
- • Regulatory and policy changes impacting business operations(p.310)
- • MSME payment obligation risks with outstanding dues(p.282)
- • Multiple environmental violations against group companies(p.326)
- • Multiple public interest litigations against wind farm project(p.332)
- • Land acquisition disputes with local communities(p.331)
- • Illegal land entry and transmission line installation disputes(p.332)
- • Multiple transmission line and land compensation disputes(p.334)
- • Supreme Court PIL regarding wind farm environmental impact(p.334)
- • Tax litigation against promoter individually(p.326)
- • Regulatory action by Gujarat Electricity Regulatory Commission(p.336)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Dr. Farukbhai Gulambhai Patel | Promoter | 78.51% | 57.85% |
| Hassan Faruk Patel | Promoter | 0.91% | 0.67% |
| Farukbhai Gulambhai Patel | Promoter | 78.51% | 57.85% |
| Hassan Faruk Patel | Promoter | 0.91% | 0.67% |
| Muinulhaque Iqbalhusen Kadva | Promoter Group | 4.56% | 3.36% |
| Dr. Farukbhai Gulambhai Patel | Promoter | — | — |
| Dr. Farukbhai Gulambhai Patel | Promoter | 87.00% | — |
| Mr. Hassan Faruk Patel | Promoter | 1.00% | — |
| Farukbhai Gulambhai Patel | Promoter | 87.00% | — |
| Hassan Faruk Patel | Promoter | 1.00% | — |
| Farukbhai Gulambhai Patel | Promoter | — | — |
Leadership
Dr. Farukbhai Gulambhai Patel · Chairman/Promoter
Hassan Faruk Patel · Promoter
Saurabh Sharma · Company Secretary and Compliance Officer
Pravinkumar Singh · Chief Financial Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
KP Green Engineering IPO FAQs
What is the lot size of KP Green Engineering IPO?
The minimum lot size of KP Green Engineering IPO is 1,000 shares. One lot costs ₹1,44,000 at the cut-off price.
When does KP Green Engineering IPO open and close?
KP Green Engineering IPO opened for subscription on 15 Mar 2024 and closed on 19 Mar 2024.
What is the listing date of KP Green Engineering IPO?
KP Green Engineering IPO listed on 22 Mar 2024.