SMPP Ltd Sets Sights on Rs 4,000 Crore IPO

SMPP Ltd, an Indian defense equipment manufacturer, has filed for a Rs 4,000 crore IPO. The offering includes a fresh equity issue and an offer for sale by promoter Shiv Chand Kansal. The funds will be used for capital expenditure, including an ammunition manufacturing facility, and general corporate purposes.

SMPP Ltd, a prominent defense equipment manufacturer, has signaled its intent to raise Rs 4,000 crore via an initial public offering (IPO), as indicated in newly filed preliminary papers with regulator Sebi. The IPO will encompass a fresh issue of equity shares worth up to Rs 580 crore and an offer for sale of equity shares by the promoter, Shiv Chand Kansal, totaling Rs 3,420 crore.

Kansal currently holds a 50% stake in SMPP, and the company might execute a pre-IPO placement, which could adjust the fresh issue size. The raised capital will primarily fund Rs 437.04 crore worth of capital expenditure to establish a new ammunition manufacturing facility, alongside general corporate needs.

SMPP Ltd, established in 1992, specializes in defense equipment production, manufacturing combustible cartridge cases, personal protection gear, and platform protection kits used by various security forces. Key financial institutions like Axis Capital and ICICI Securities are managing the upcoming IPO, with SMPP shares set to list on the BSE and NSE.

(With inputs from agencies.)