SMPP Ltd Filed DRHP With SEBI To Raise ₹4,000 Crore

The defence equipment manufacturer SMPP Ltd has filed the draft red herring prospectus with the market regulator Securities and Exchange Board of India to float a ₹4,000 crore IPO. SMPP IPO comprises a fresh issue of  ₹580 crore and an offer for sale of ₹3,420 crore. SMPP has appointed Axis Capital Limited, ICICI Securities Limited, IIFL Securities Limited, JM Financial Limited and Motilal Oswal Investment Advisors Limited as the book runner lead managers while Link Intime India Private Limited as the registrar to the issue.

Objective of SMPP IPO

Fresh Issue

SMPP proposes to utilise the net proceeds towards funding the following objects: 

• For financing the capital expenditure towards the construction of buildings and land development, and procurement of plant and machinery for setting up the Planned Ammunition Manufacturing Facility through investment in SMPP Ammunition Private Limited, its Subsidiary.
• General corporate purposes.

Offer for Sale

The company will not receive any proceeds from the offer for sale portion. The promoter-selling shareholder will be entitled to its respective portion of the proceeds of the Offer for Sale

after deducting its proportion of the offer expenses and relevant taxes thereon.

About SMPP Ltd

Incorporated in 1985, SMPP Ltd is an Indian designer and manufacturer of defence equipment including ammunition components, personal protection products and protection kits for land, air and sea platforms. The company possesses an established track record of supplying defence products to the Indian armed forces with experience in handling military-grade explosives for over three decades.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.