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News Topical, Digital Desk : Telangana's design, engineering and manufacturing company Ardee Engineering Limited is going to enter the stock market soon. Ardee Engineering has received approval from market regulator SEBI to launch an IPO. Through this IPO, the company is planning to raise Rs 580 crore. This Rs 580 crore includes a fresh issue of Rs 500 crore and the remaining Rs 80 crore through Offer for Sale i.e. OFS. Through OFS, the company's founder Chandra Shekhar Moturu will sell some shares.
Ardee Engineering specializes in pre-engineered buildings, electro-mechanical and civil works. In the six months up to September 2024, the company has earned a profit of Rs 15.60 crore on revenue of Rs 288 crore.
Who is the competition of this company? After getting approval, the company can now launch the IPO about a year before the scheduled time. The company competes with companies like Pennar Industries, Everest Industries, Capacite Infraprojects. It is planning to raise up to Rs 100 crore before the IPO. If this amount is raised, then the amount to be raised through fresh issue in the IPO may be reduced.
Where will the company use the raised funds? The proceeds from the IPO will be used to set up two new manufacturing facilities at Sitarampur in Telangana (Rs 279.63 crore), a new facility at Paravada in Andhra Pradesh (Rs 44.84 crore), repay debt (Rs 65 crore) and the rest for general corporate purposes. The IPO is being managed by IIFL Capital Services and JM Financial.
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