Ardee Engineering Limited has obtained approval from SEBI to raise ₹580 crore through an initial public offering (IPO), according to a recent update on the capital markets regulator’s website.
The Hyderabad-based company’s public offering comprises a fresh issue of equity shares valued at ₹500 crore and an offer for sale of equity shares totaling up to ₹80 crore, offered by the promoter Chandra Sekhar Moturu, as stated in the draft red herring prospectus (DRHP).
Ardee intends to allocate ₹279.6 crore from the net proceeds of the fresh issue for capex needs related to establishing two new manufacturing facilities in Seetharampur, Telangana; ₹44.8 crore for developing a new integrated manufacturing facility in Parawada, Andhra Pradesh; ₹65 crore for the prepayment or repayment, in full or in part, of some outstanding borrowings taken by the company, and the remainder for general corporate purposes.
IIFL Capital Services Limited and JM Financial Limited serve as the book running lead managers for the issue.
Company Details
Established in 2008 as a partnership, Ardee caters to a portfolio of prominent blue-chip companies, including ArcelorMittal Nippon Steel India Limited (AM/NS), JK Cement Limited, Navayuga Engineering Company Limited, and Udaipur Cement Works Limited, among others.
Ardee boasts a varied clientele across numerous industries such as e-commerce and logistics, electronics manufacturing, defense, aerospace, steel production, construction, power generation, and mining, operating through five strategically positioned manufacturing facilities in Andhra Pradesh and Telangana.
As of March 31, 2024, the company has a total installed capacity of 44,144 metric tonnes per annum (MTPA).
Financially, Ardee recorded an operational revenue of ₹620 crore and a profit after tax (PAT) of ₹29 crore for the fiscal year 2024.
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