Kent RO Systems Ltd. on Wednesday filed its preliminary papers for an initial public offering with the Securities and Exchange Board of India. The offer will include over one crore shares offloaded by promoters selling their stake via and offer for sale.
The promoters selling their stake include Mahesh Gupta, Sunita Gupta and Varun Gupta. Among the three, Mahesh Gupta is selling the biggest chunk of the holding with 56,35,088 equity shares of face value of Rs 1 each going from his kitty. Sunita Gupta and Varun Gupta are selling 33,60,910 equity shares and 10,98,570 equity shares, respectively.
Motilal Oswal Investment Advisors Ltd. and JM Financial Ltd. are the book-running lead managers for the issue and Kfin Technologies Ltd. will be the registrar of the issue.
The company is planning the offer for sale of up to 10,094,568 equity shares of face value of Rs 1 each and achieve the benefits of listing the equity shares on the stock exchanges. The company will not receive any proceeds from the offer and all such proceeds will go to the promoter selling shareholders.
The offer has been authorised by a resolution by board of directors dated Jan. 8, 2025. The promoter selling shareholders have also authorised their participation in the offer for sale.
The company derives a substantial portion of its revenues from the sale of water purifier and water softeners products.
Among some risk factors, one major one is the availability of counterfeit products, such as products passed off as their products by others. This could have an adverse effect on the business, results of operations, financial condition and cash flows, the company said.
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