Kalpataru Projects International Ltd’s material subsidiary, Linjemontage i Grästorp AB (LMG), has priced its initial public offering at SEK 46 per share. The listing on Nasdaq Stockholm is scheduled to commence trading on September 25, 2026.

The offering values LMG at approximately SEK 2,356.5 million. Kalpataru Power Transmission Sweden AB (KPTS), a wholly owned subsidiary of the parent company, and other selling shareholders are offering up to 14.3 million existing shares. This represents approximately 27.9% of the total shares and votes in LMG, excluding the over-allotment option.

Offering Details

The total value of the offering amounts to approximately SEK 658.3 million, with an additional over-allotment option worth approximately SEK 98.8 million. If exercised fully, the offering will comprise up to 16.4 million shares, representing roughly 32.1% of the company.

Cornerstone investors Tredje AP-fonden and Unionen have undertaken to acquire shares for an aggregate amount of SEK 290 million. The application period for both the general public in Sweden and institutional investors runs from September 17 to September 24, 2026.

Financial Performance

LMG, a pure-play engineering, procurement and construction (EPC) provider within power infrastructure, reported strong financial growth leading up to the listing. The following table outlines key financial metrics:

For the fiscal year ended March 31, 2026, LMG’s net sales amounted to SEK 3,225 million, with an adjusted EBITA of SEK 245 million. As of June 30, 2026, the company maintained an order book of SEK 4,349 million.

What the Numbers Show

Linjemontage demonstrates a significant divergence between top-line momentum and profitability expansion. While net sales grew at a compound annual growth rate (CAGR) of 56.6% from FY24/25 to FY25/26, the adjusted EBITA margin expanded more sharply, rising from 4.4% in FY24/25 to 7.6% in FY25/26. This margin expansion outpaced revenue growth, indicating improved operational leverage or higher-margin project mix during this period. Additionally, the company operates with a robust net cash position of SEK 172.1 million as of Q1 FY27, supporting its asset-light business model without reliance on external debt financing for current operations.

Strategic Context

The listing aims to enhance LMG’s visibility and credibility among customers and partners in the Nordic power infrastructure sector. KPTS intends to remain a long-term major shareholder following the completion of the offering. LMG operates primarily in Sweden and Norway, focusing on modernizing and expanding electricity grids up to 400 kV.

The company benefits from structural investment needs in the region, with Sweden’s serviceable addressable market for grid investments expected to grow at an 11% CAGR until 2030. LMG’s order book includes significant projects such as a SEK 1 billion transmission project for Svenska kraftnät won in 2024 and a SEK 779 million substation project secured in 2026.

Kalpataru Projects International has incorporated LM Operation Center India Private Limited as a wholly owned step-down subsidiary. The new entity was registered on August 14, 2026, to strengthen the company’s engineering and project execution capabilities in India.

The incorporation was disclosed under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company received the Certificate of Incorporation from the Ministry of Corporate Affairs on September 1, 2026.

Subsidiary Details

LM Operation Center India Private Limited is a first-level step-down subsidiary of Linjemontage I Grästorp AB ("LMG AB"), which is itself a first-level step-down subsidiary of Kalpataru Projects International.

The authorised capital stands at ₹3 crore, comprising 30 lakh equity shares of ₹10 each. The subscribed capital is ₹1.5 crore, representing 15 lakh equity shares. LMG AB, along with its nominee shareholder, has subscribed to 100% of the equity share capital through a cash subscription via banking channels.

Strategic Rationale

The new entity is incorporated to establish an operation centre in India. This move is intended to enhance LMG AB’s project and engineering execution capabilities. As a related party transaction, the acquisition involves no interest from the promoter group or other group companies outside the immediate subsidiary structure.

No governmental or regulatory approvals are required for this incorporation. The entity has not yet commenced business operations, so turnover figures are not applicable.