Ardee Engineering files draft papers with Sebi for ₹580 crore IPO

Ardee Engineering Ltd has filed preliminary papers with capital markets regulator Sebi for an initial public offering (IPO) to raise ₹580 crore.

The IPO of the Hyderabad-headquartered company consists of a fresh issue of equity shares worth ₹500 crore and an Offer-for-Sale (OFS) of ₹80 crore by the promoter Chandra Sekhar Moturu, according to the draft red herring prospectus (DRHP) filed on Thursday.

The company may consider raising ₹100 crore in a Pre-IPO placement round. If such a placement is completed, the fresh issue size will be reduced.

Proceeds from the fresh issue to the tune of ₹279.6 crore will be used for setting up two new manufacturing facilities at Seetharampur, Telangana; ₹44.8 crore for establishing a new integrated manufacturing facility at Parawada, Andhra Pradesh; ₹65 crore for payment of debt and 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 recognized blue chip brands; ArcelorMittal Nippon Steel India Limited (AM/NS), JK Cement Limited, Navayuga Engineering Company Limited, Udaipur Cement Works Limited to name a few.

Ardee, which has a diverse client base spanning multiple sectors like e-commerce and logistics, electronics manufacturing, defense, 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 ₹620 crore and a profit after tax (PAT) of ₹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.