Defence equipment manufacturer SMPP Ltd has filed preliminary papers with capital markets regulator Sebi to raise Rs 4,000 crore through an initial public offering (IPO).
The IPO comprises a fresh issue of equity shares aggregating up to Rs 580 crore and an offer for sale (OFS) of equity shares worth up to Rs 3,420 crore by promoter Shiv Chand Kansal, according to the draft red herring prospectus (DRHP) filed on Friday.
At present, Kansal holds 50 per cent stake in the company.
The company may consider a pre-IPO placement of securities valued at Rs 116 crore. If such placement is carried out, the fresh issue size will be reduced.
Proceeds from the fresh issue will be utilised primarily for capital expenditure of Rs 437.04 crore, which includes constructing buildings, land development, and procuring plant and machinery for a planned ammunition manufacturing facility through investment in a subsidiary.
The remaining amount will be allocated for general corporate purposes.
SMPP is a
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