Hyderabad-based Ardee Engineering Files DRHP with SEBI for a Massive Rs 580 Crore IPO

In a significant move towards expansion, Ardee Engineering Limited, a leader in integrated design, engineering, and manufacturing, has filed its draft red herring prospectus (DRHP) with SEBI. The company aims to raise Rs 580 crore through an initial public offering (IPO), with plans to list its equity shares on both BSE and NSE.

Details of the IPO

The IPO comprises a fresh issue of equity shares aggregating up to Rs 500 crore and an offer for sale (OFS) of shares aggregating up to Rs 80 crore by the promoter selling shareholder, Chandra Sekhar Moturu. The company, with its strong presence in pre-engineered buildings (PEB), material handling systems (MHS), and engineering services, is poised for growth.

Utilization of Proceeds

Ardee Engineering plans to allocate Rs 279.6 crore from the net proceeds towards setting up two new manufacturing facilities in Telangana and another Rs 44.8 crore for a new integrated manufacturing facility in Andhra Pradesh. Additionally, Rs 65 crore is earmarked for prepayment or repayment of outstanding borrowings, with the remainder allocated for general corporate purposes.

Pre-IPO Placement and Financials

The company is considering a pre-IPO placement of up to Rs 100 crore, which would adjust the fresh issue size accordingly. As of March 31, 2024, Ardee reported a revenue of Rs 620 crore and a profit after tax of Rs 29 crore, with an installed capacity of 44,144 metric tonnes per annum (MTPA).

About Ardee Engineering

Founded in 2008, Ardee Engineering serves a diverse clientele across sectors such as e-commerce & logistics, electronics manufacturing, and more, through its five manufacturing units in AP and Telangana. IIFL Capital Services Limited and JM Financial Limited are the book-running lead managers for the issue.