Knowledge Marine & Engineering Works Ltd (KMEW) has unveiled an ambitious growth strategy, setting its sights on projects worth Rs 2,000 crore with impressive 35% EBITDA margins. The company, which operates in the dredging, shipbuilding, and port ancillary services sectors, is poised for significant expansion in the coming years.

Diversified Operations and Growth Trajectory

KMEW's operations span three key segments: dredging, shipbuilding, and port ancillary services. The company has demonstrated its capabilities by constructing 34 vessels for its own use and now plans to extend its shipbuilding expertise to construct vessels for the Government of India.

The company's growth trajectory has been remarkable, with turnover surging from Rs 1.49 crore in FY16 to over Rs 200.00 crore in the previous fiscal year. This exponential growth is further underscored by a profit after tax of approximately Rs 50.00 crore.

Strong Order Book and Future Projections

KMEW's order book stands at a robust Rs 881.00 crore as of May 2025, indicating a healthy pipeline of projects. The company has also placed bids for projects worth Rs 3,500.00 crore, showcasing its aggressive pursuit of new opportunities.

Looking ahead, KMEW has set an ambitious target of achieving Rs 600.00-700.00 crore in revenue within the next three years. This projection aligns with the company's overall growth strategy and its focus on high-value projects.

Financial Strength and Debt Management

The company's balance sheet has shown significant expansion, growing from Rs 60.00 crore in FY24 to Rs 133.00 crore in FY25. This growth in assets provides KMEW with a stronger foundation to pursue its ambitious projects.

In a move that strengthens its financial position, KMEW has repaid Rs 50.00 crore in debt to HDFC Bank this fiscal year. The company maintains a healthy equity ratio of 1.5 to 1, indicating a balanced approach to leverage and financial stability.

Expansion into Shipbuilding and Repair Services

As part of its growth strategy, KMEW plans to expand its shipbuilding and repair services to cater to external clients. This move is expected to diversify the company's revenue streams and leverage its existing expertise in vessel construction.

Conclusion

Knowledge Marine & Engineering Works Ltd's ambitious targets and strong financial performance position it as a company to watch in the marine engineering and services sector. With a diverse range of operations, a healthy order book, and plans for expansion, KMEW appears well-equipped to navigate the waters of growth and capitalize on opportunities in the maritime industry.

Knowledge Marine & Engineering Works Limited (KMEW), a prominent player in the marine industry, has announced significant corporate actions that are set to bolster its financial position and reshape its leadership structure.

Preferential Share Issue and Warrant Allotment

The company's Board of Directors has approved a substantial capital raise through a preferential issue of equity shares and convertible warrants. Here are the key details:

• Equity Share Issue: KMEW will issue 14,21,054 equity shares at Rs 1,900.00 per share to non-promoter investors, raising Rs 270.00 crores.
• Convertible Warrants: An additional 77,946 convertible warrants will be issued at Rs 1,900.00 each to promoter category investors, potentially raising Rs 14.81 crores.
• Total Fundraise: The combined value of the equity shares and warrants amounts to Rs 284.81 crores.

Terms of the Issue

• The equity shares have a face value of Rs 10.00 each, with a premium of Rs 1,890.00 per share.
• Convertible warrants can be exercised within 18 months from the allotment date, with each warrant convertible into one equity share.
• The issue price for both equity shares and warrants is set at Rs 1,900.00 per unit.

Investor Details

The preferential issue will introduce new investors to KMEW's shareholding structure:

Board Changes

KMEW also announced significant changes to its Board of Directors:

• Resignation: Mr. Jagat Jiban Biswas has resigned as Non-Executive Non-Independent Director, citing personal health reasons.
• New Appointment: Mr. Hemant Sibal has been appointed as an Additional Non-Executive Non-Independent Director. Mr. Sibal brings 27 years of experience in the Marine Industry, including a tenure as Deputy Conservator at Kandla Port trust.

Other Key Decisions

• An Extraordinary General Meeting (EGM) is scheduled to seek shareholder approval for the preferential issue and warrant allotment.
• CARE Ratings Limited has been appointed as the monitoring agency for the issue.
• The Nomination and Remuneration Committee has been reconstituted following Mr. Biswas's resignation.

Market Impact

This substantial capital infusion is expected to strengthen KMEW's financial position, potentially fueling growth initiatives and expanding its operations in the marine sector. The introduction of notable investors like Infinity Direct Holdings and Ashish Kacholia may also boost investor confidence in the company's prospects.

The appointment of Mr. Hemant Sibal, with his extensive experience in the marine industry, could bring valuable insights to KMEW's strategic decision-making process.

Investors and market watchers will be keenly observing how KMEW utilizes this fresh capital and leverages its new board composition to drive future growth and enhance shareholder value.