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About KSH International IPO
The IPO is a mix of fresh issue of shares worth up to Rs 420 crore and an offer-for-sale (OFS) up to Rs 325 crore, where promoter shareholders will offload their shares in the company.
The offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional and retail individual bidders, respectively.
The equity shares of KSH International are proposed to be listed on the NSE and BSE.
KSH International IPO proceeds
The proceeds from the fresh issue to the extent of Rs 225.98 crores will be used for prepayment and/or repayment of all or a portion of certain outstanding borrowings availed by the company.Moreover, Rs 90.06 crore will be utilised towards funding the capital expenditure requirements of the company which is purchasing and setting up of new machinery for expansion at its Supa Facility and purchasing and setting up of new machinery at Unit 2 in Chakan, Pune in Maharashtra.The company will use Rs 10.41 crore for purchasing and setting up of a rooftop solar power plant for power generation at its Supa Facility and general corporate purposes.
About KSH International
KSH International is part of the KSH group and commenced its operations in 1981 by manufacturing magnet winding wires in Taloja, Raigad, in Maharashtra. In the last four decades, it has diversified operations to manufacturing various types of standard and specialized magnet winding wires. It markets and sells its products through its brand ‘KSH’, which has a strong brand recall and reputation in the industry over the years.
Its key products include round enamelled copper/ aluminium magnet winding wires, paper insulated rectangular copper/ aluminium magnet winding wires, continuously transposed conductors, rectangular enamelled copper/aluminium magnet winding wires and bunched paper insulated copper magnet winding wires.
The products are critical components of capital goods such as transformers, motors, alternators and generators.
The company had 112 customers as on December 31, 2024 which includes the likes of Bharat Bijlee Limited, Virginia Transformer Corporation, Bharat Heavy Electricals Limited, Georgia Transformer Corporation, Hitachi Energy India Limited, Siemens Energy India Limited and GE Vernova T&D India Limited among others.
KSH International has a significant global footprint, and exports its products to 24 countries as of December 31, 2024, including, USA, UAE, Kuwait, Romania, Saudi Arabia, Germany, Oman, Spain, Bangladesh and Japan, amongst others.
KSH International financials
KSH International revenue from operations increased by 32% from Rs 1,049 crore in fiscal 2023 to Rs 1,383 crore in fiscal 2024, primarily on account of the increase in volume and metal prices in Fiscal 2024.
Its EBITDA has increased from Rs 50 crore in FY23 to Rs 71 crore in FY24, while the profit after tax (PAT) grew from Rs 27 crore in FY23 to Rs 37 crore in FY24.
For the nine months ended December 31, 2024, revenue from operations stood at Rs 1420 crore, EBITDA was Rs 87 crore and PAT stood at Rs 50 crore.
However, KSH International Limited has shown notable progress, increasing its market share from 11.19% to 13.70%, signalling a steady upward trajectory.
IPO lead managers
Nuvama Wealth Management Limited, and ICICI Securities Limited are the book-running lead managers and MUFG Intime India Private Limited is the registrar of the issue.
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