One of the leading magnet winding wire manufacturers, KSH International, submitted its DRHP with the market regulator SEBI in order to raise funds via an Initial Public Offering (IPO).
According to the Draft papers, KSH International is planning to raise funds of ₹745 crore. This IPO comprises a mixture of fresh issue of ₹420 crore and an offer-for-sale (OFS) of equity shares worth ₹325 crore.
The proceeds of ₹225.98 crore raised from the fresh issue will be utilized towards the repayment of existing debt, and funding of ₹90.06 crore will be used to set up new machinery at Chakan, Pune, in Maharashtra. The funds of ₹10.41 crore will be used for establishing a rooftop solar power plant. Lastly, the remaining funds will be used for the company’s general corporate uses.
Nuvama Wealth Management and ICICI Securities are the book-running lead managers of the KSH International IPO, while MUFG Intime India is the issue’s registrar.
Incorporated in 1981, KSH International is the third-largest manufacturer and exporter of magnet winding wires in India. With over 40 years of experience in this sector, the company has incorporated the manufacturing of a wide range of standard and specialized magnet winding wires, especially made to meet its customers’ requirements. The company’s portfolio consists of round enamelled copper/ aluminium magnet winding wires, paper insulated rectangular copper/ aluminium magnet winding wires, continuously transposed conductors, rectangular enamelled copper/ aluminum magnet winding wires, and bunched paper insulated copper magnet winding wires.
KSH International supplies 24 countries, including the US, UAE, Kuwait, Romania, Saudi Arabia, Germany, Oman, Spain, Bangladesh, and Japan.
In FY24, the company generated a revenue of up to ₹1,382.82 crore, compared to FY23, the revenue was ₹1,049.46 crore. Whereas, the Profit After Tax rose by ₹37.35 crore, respectively.
KSH International IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
KSH International Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹876.47 | ₹835.93 | ₹27.57 |
| 2023 | ₹1056.60 | ₹1021.13 | ₹26.61 |
| 2024 | ₹1390.50 | ₹1339.88 | ₹37.35 |
| December 2024 | ₹1428.37 | ₹1363.78 | ₹49.53 |
KSH International IPO Valuation – FY2024
KSH International IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹6.57 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 16.17% |
| Net Asset Value (NAV): | ₹40.65 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Precision Wires India Limited | 4.08 | 43.77 | 14.39% | 28.35 | 3301.7 Cr. |
| Ram Ratna Wires Limited | 11.88 | 49.12 | 12.73% | 93.27 | 2983.2 Cr. |
Objects of the Issue
- Prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by our Company
- Funding the capital expenditure requirements of our Company towards
- purchasing and setting up of new machinery for expansion at our Supa Facility (“Phase II Expansion at our Supa Facility”);
- purchasing and setting up of new machinery at Unit 2 in Chakan, Pune in Maharashtra;
- Funding the capital expenditure requirements of our Company towards purchasing and setting up of a rooftop solar power plant for power generation at our Supa Facility; and
- General corporate purposes
IPO Lead Managers aka Merchant Bankers
- Nuvama Wealth Management Limited
- ICICI Securities Limited
