Ardee Engineering Gets SEBI Nod For Rs 580-Crore IPO

Ardee Engineering Ltd. has received SEBI's go-ahead to raise Rs 580 crore through an initial public offering, an update with the markets regulator showed on Tuesday.

The proposed IPO is a combination of a fresh issue of equity shares worth Rs 500 crore and an Offer-for-Sale of Rs 80 crore by promoter Chandra Sekhar Moturu, according to the draft red herring prospectus (DRHP).

The Hyderabad-headquartered company, which filed preliminary IPO papers in March, obtained SEBI's observations during the week.

In SEBI's parlance, receiving observations is equivalent to getting the go-ahead to proceed with a public issue.

As per the draft papers, proceeds from the fresh issue to the tune of Rs 279.6 crore will be used for setting up two new manufacturing facilities at Seetharampur in Telangana, Rs 44.8 crore for establishing a new integrated manufacturing facility at Parawada in Andhra Pradesh, Rs 65 crore for payment of debt and the rest for general corporate purposes.

Ardee Engineering is an integrated design, engineering and manufacturing company having three primary business lines -- pre-engineered buildings, material handling systems and engineering services.

Incorporated in 2008 as a partnership firm, Ardee's key customers include some of the leading globally recognised blue-chip brands such as ArcelorMittal Nippon Steel India Limited (AM/NS), JK Cement Limited, Navayuga Engineering Company Limited, and Udaipur Cement Works Limited, among others.

Ardee, which has a diverse client base spanning multiple sectors like e-commerce and logistics, electronics manufacturing, defence, aerospace, steel production, construction, power generation, and mining, serves its customers through five strategically located manufacturing units in Andhra Pradesh and Telangana.

As on March 31, 2024, it had an aggregate installed capacity of 44,144 metric tonnes per annum (MTPA).

On the financial front, Ardee reported revenue from operations at Rs 620 crore and a profit after tax (PAT) of Rs 29 crore in FY24.

IIFL Capital Services and JM Financial are the book-running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.