SMPP Files Rs 4,000 Crore IPO Draft With SEBI

SMPP has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) to raise Rs 4,000 crore through an initial public offering (IPO).

The IPO will consist of a fresh issue worth Rs 580 crore and an offer for sale amounting to Rs 3,420 crore by its promoter Shiv Chand Kansal, who currently holds a 50 per cent stake in the company. The proceeds from the fresh issue will be utilised to establish an ammunition manufacturing facility for SMPP Ammunition Pvt, a subsidiary of the company.

Axis Capital, ICICI Securities, IIFL Securities, JM Financial, and Motilal Oswal Investment Advisors have been appointed as the lead managers for the issue.

SMPP is an Indian designer and manufacturer of defence equipment, specialising in ammunition components, personal protection products, and protection kits for land, air, and sea platforms. The company supplies critical products to the armed forces, police, paramilitary, and security agencies, including combustible cartridge cases, bullet-resistant jackets, armour plates, ballistic helmets, and vehicle protection kits.

As of 30 June 2024, SMPP has an annual production capacity of 408,000 protection products and 120,000 ammunition components. The company’s focus is on ensuring user safety in high-risk environments.

In FY24, the firm reported revenue of Rs 145.77 crore, a significant rise from Rs 52.54 crore the previous year. Its net profit for the year was Rs 42.59 crore, compared to Rs 9.21 crore in FY23.