SMPP Private Limited, a renowned company for Indian designers and manufacturers of defense equipment, has recently filed a draft red herring prospectus with the Securities Board of India to raise Rs 4000 crore via initial public offering.
Shiv Chand Kansal, the founder of SMPP announced a fresh issue of Rs 580 crore offer for sale of up to Rs 3420 crore. Kandal currently has a 50% share in the company.
The money raised from the new issue would be utilized to establish a facility for SMPP Ammunition Pvt Ltd, to manufacture ammunition. The issue’s lead managers are Axis Capital, ICICI Securities, IIFL Securities, JM Financial, and Motilal Oswal Investment Advisors.
SMPP Pvt Ltd. is a self-defense company that manufactures bulletproof vests and jackets, body armor, Boron Carbide ceramics, and combustible cartridge cases for ammunition.
They offer Essential products for defense forces, police, paramilitary, and security agencies, including combustible cartridge cases, bullet-resistant jackets, armor plates, ballistic helmets, and vehicle protection kits. Their goal is to manufacture high-quality products for user safety in high-risk situations. As of June 30, 2024, they have provided an annual capacity of 408,000 protection products and 120,000 ammunition components.
In the Fiscal year 2024, the firm reported revenue of Rs 145.77 crore against Rs 52.54 crore. Compared to last year’s Rs 9.21 crore, the net profit for the year was Rs 42.59 crore.
SMPP IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
SMPP Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹376.92 | ₹259.30 | ₹87.74 |
| 2023 | ₹367.82 | ₹242.40 | ₹92.61 |
| 2024 | ₹536.90 | ₹339.21 | ₹ 146.51 |
| June 2024 | ₹148.31 | ₹91.27 | ₹ 42.60 |
SMPP IPO Valuation – FY2024
SMPP 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): | ₹2.44 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 31.26% |
| Net Asset Value (NAV): | ₹7.81 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Premier Explosives Limited | 5.29 | 99.39 | 12.83 | 41.20 | 271.72 Cr. |
| Hindustan Aeronautics Limited | 113.95 | 39.55 | 26.15 | 435.75 | 30,381.08 Cr. |
| Bharat Electronics Limited | 5.45 | 52.39 | 24.38 | 22.36 | 20,268.24 Cr. |
| Solar Industries India Limited | 92.38 | 122.25 | 25.54 | 378.74 | 6,069.52 Cr. |
| Data Patterns (India) Limited | 32.45 | 75.00 | 13.72 | 236.53 | 519.80 Cr. |
| MTAR technologies Limited | 18.24 | 97.69 | 8.30 | 219.88 | 580.75 Cr. |
| Astra Microwave Products Limited | 12.86 | 65.93 | 12.53 | 101.76 | 908.82 Cr. |
| Bharat dynamics Limited | 16.72 | 71.12 | 16.85 | 99.21 | 2,369.28 Cr. |
Objects of the Issue
- financing the capital expenditure towards construction of buildings and land development, and procurement of plant and machinery for setting up the Planned Ammunition Manufacturing Facility (“Ammunition Project”) through investment in SMPP Ammunition Private Limited, our Subsidiary; and
- general corporate purposes.
IPO Lead Managers aka Merchant Bankers
- Axis Capital Limited
- IIFL Securities Limited
- JM Financial Limited
- Motilal Oswal Investment Advisors Limited
- ICICI Securities Limited
