Defense sector giant company will bring Rs 4000 crore IPO, documents submitted to SEBI

SEBI: Defense stocks have performed strongly in the stock market in recent times. Besides, there is also a positive atmosphere regarding IPO on the stock market. This year a record number of IPOs have come on the market. He has also received a lot of love from investors. In view of this environment, SMPP Ltd, a big company working in the Defense Sector, has also decided to launch its IPO. The company has submitted the IPO documents to market regulator SEBI.

SMPP manufactures defense equipment, Shiv Chand Kansal is the promoter.

The IPO of SMPP Limited will be worth approximately Rs 4000 crore. There will be a fresh issue of about Rs 580 crore and an offer for sale of Rs 3420 crore. This company is a defense equipment manufacturer. Its promoter is Shiv Chand Kansal. According to the IPO document, he wants to reduce his stake through this IPO. At present Shiv Chand Kansal holds 50 percent stake in the company. Apart from this, the company can also do pre-IPO placement of securities worth Rs 116 crore. If this decision is taken then the size of the fresh issue will be further reduced.

Will spend money on development of arms factory

According to the IPO documents submitted to SEBI, the company will fund its capital expenses with the money received from the IPO. These include construction of buildings, development of land, purchase of plant and machinery for the arms factory. The remaining money will be used to fulfill other corporate objectives. SMPP designs and manufactures defense equipment. These include various types of weapon parts, protection products and protection kits for various land, air and naval operations. Since 1992, the company has been manufacturing cases for tanks and artillery ammunition. Apart from this, bullet proof jackets, armor plates, ballistic helmets and shields are also made by the company.

These companies become book running lead managers, will be listed on BSE-NSE.

The company has appointed Axis Capital, ICICI Securities, IIFL Securities, JM Financial and Motilal Oswal Investment Advisors as book running lead managers for its IPO. SMPP shares will be listed on BSE and NSE.

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