KSH International Files DRHP with SEBI for ₹745 Crore IPO

KSH International Ltd, a Pune-headquartered company known for manufacturing magnet winding wires, has taken a significant step towards going public. On Thursday, the company filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), seeking approval to raise ₹745 crore through an initial public offering. The IPO is a mix of a fresh issue and an offer-for-sale by promoters, signalling both growth plans and partial promoter exit.

Capital Allocation Focuses on Debt, Expansion and Sustainability

The proposed IPO includes a fresh issue of shares worth ₹420 crore and an offer-for-sale of ₹325 crore. Out of the fresh proceeds, ₹225.98 crore is earmarked for debt repayment, ₹90.06 crore for purchasing and installing new machinery to expand capacity at the Supa facility and for the Chakan unit in Pune, Maharashtra. Additionally, ₹10.41 crore will be used for setting up a rooftop solar power plant at Supa. The remaining amount will support general corporate purposes.

Established Industry Presence with Global Footprint

Established in 1981 in Raigad, Maharashtra, KSH International is a part of the KSH Group. Over the last 4 decades, the company has evolved from a single-product manufacturer into a diversified producer of both standard and specialised magnet winding wires, marketed under the 'KSH' brand. As of 31 December 2024, it serves 112 clients, including Bharat Bijlee, Siemens Energy India, Hitachi Energy, Toshiba T&D Systems, CG Power, and Emirates Transformer.

KSH International operates 3 manufacturing units: 2 in Chakan and 1 in Taloja, Raigad, with a fourth facility under development in Supa, Ahilyanagar (formerly Ahmednagar), expected to become operational in FY26. The firm also exports to 24 countries, such as the US, Germany, Saudi Arabia, and Japan.

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Conclusion

With a strong legacy, expanding infrastructure, and international client base, KSH International’s proposed IPO aims to reinforce its financial stability and production capacity. The strategic use of funds, particularly towards debt reduction and sustainable operations, positions the company for its next phase of growth.

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