SMPP has received the Securities and Exchange Board of India’s (SEBI's) approval 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.
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. Axis Capital, ICICI Securities, IIFL Securities, JM Financial, and Motilal Oswal Investment Advisors are the book-running lead managers to the issue. The shares of the company will be listed on the BSE and the NSE.
SMPP is an Indian designer and manufacturer of defense equipment, including ammunition components, personal protection products, and platform protection kits for land, air, and sea operations.
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