Defense equipment manufacturer SMPP Ltd has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) to raise ₹4,000 crore through an initial public offering (IPO). The offering includes a fresh issue of ₹580 crore and an offer for sale of up to ₹3,420 crore by promoter Shiv Chand Kansal, who currently holds a 50% stake in the company. The IPO proceeds will be used to establish a new ammunition manufacturing facility for its subsidiary, SMPP Ammunition Pvt Ltd.
SMPP designs and manufactures defense equipment that provides ammunition components, personal protection products, and protection kits of military platforms in land, air, and sea. The key offerings of the company include combustible cartridge cases, bullet-resistant jackets, armor plates, ballistic helmets, and vehicle protection kits. Its products serve various armed forces, police, paramilitary, and security agencies.
As of June 30, 2024, SMPP had an annual capacity to produce 408,000 protection products and 120,000 ammunition components. On the financial front, the company said its revenue for FY24 surged to ₹145.77 crore from ₹52.54 crore a year ago. Net profit increased sharply to ₹42.59 crore from ₹9.21 crore in the last corresponding period.
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Source: Moneycontrol
News Desk
