Ardee Engineering Secures SEBI Nod for Rs 580 Crore IPO
Hyderabad-based Ardee Engineering Ltd. has obtained SEBI approval for its Rs 580 crore IPO, comprising a Rs 500 crore fresh issue and Rs 80 crore OFS. The company plans to use funds for new manufacturing facilities in Telangana and Andhra Pradesh, debt repayment, and general corporate purposes. Ardee Engineering, specializing in pre-engineered buildings and material handling systems, reported revenue of Rs 620 crore and profit after tax of Rs 29 crore. IIFL Capital Services and JM Financial are managing the IPO, which will be listed on BSE and NSE.
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Hyderabad-based Ardee Engineering Ltd. has received the green light from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO), aiming to raise Rs 580 crore. The company, which specializes in pre-engineered buildings, material handling systems, and engineering services, is set to make its debut on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
IPO Structure and Utilization of Funds
The IPO comprises two components:
- A fresh issue of shares worth Rs 500 crore
- An offer-for-sale (OFS) of Rs 80 crore by promoter Chandra Sekhar Moturu
Ardee Engineering has outlined specific plans for utilizing the funds raised through the fresh issue:
| Purpose | Amount (in Rs crore) |
|---|---|
| Establishing two manufacturing facilities in Telangana | 279.60 |
| Setting up a new facility in Andhra Pradesh | 44.80 |
| Debt repayment | 65.00 |
| General corporate purposes | Remainder |
Company Profile and Financial Performance
Ardee Engineering has established itself as a key player in the engineering sector, boasting a diverse clientele that includes industry giants such as ArcelorMittal Nippon Steel India, JK Cement, and Navayuga Engineering. The company's financial performance demonstrates its strong market position:
- Revenue: Rs 620.00 crore
- Profit After Tax: Rs 29.00 crore
IPO Management
The book-running lead managers for Ardee Engineering's IPO are:
- IIFL Capital Services
- JM Financial
These firms will oversee the IPO process, ensuring compliance with regulatory requirements and facilitating the public offering.
Market Impact
The approval of Ardee Engineering's IPO by SEBI marks a significant milestone for the company and adds to the growing list of public offerings in India's dynamic capital market. As the company prepares to list on both the BSE and NSE, investors and industry observers will be keenly watching its performance and the response to its public offering.
The successful completion of this IPO could provide Ardee Engineering with the capital needed to expand its operations, strengthen its market position, and potentially drive growth in the engineering and construction sectors.
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