Kanodia Cement files papers with Sebi seeking approval to float IPO

The IPO is entirely an Offer For Sale (OFS) of 1.49 crore shares by promoters and an individual shareholder, with no fresh issue component, according to the DRHP filed

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Cement manufacturing company Kanodia Cement has filed preliminary papers with the markets regulator Sebi, seeking its approval to float an Initial Public Offering (IPO).

The IPO is entirely an Offer For Sale (OFS) of 1.49 crore shares by promoters and an individual shareholder, with no fresh issue component, according to the draft red herring prospectus (DRHP) filed on Thursday.

Since the public issue is completely an OFS, the company will not receive any funds from the issue and entire proceeds will go to selling shareholders.

Kanodia Cement is a cement manufacturing company operating through Satellite Grinding Units (SGUs) in the states of Uttar Pradesh and Bihar, specialising in the production of blended cement such as Portland Pozzolana Cement and Composite Cement.

It operates through a unique combination of business-to-business contract manufacturing for cement brands (Contract Manufacturing Model); and production and marketing of its own consumer brands (Business-to-Consumer Model).

As on December 31, 2024, the company operate five satellite grinding units with an aggregate cement manufacturing capacity of 3.54 MTPA.

The company's installed cement grinding capacity grew at a CAGR of 22.12 per cent, compared to the industry average of 7.31 per cent and a peer average of 9.64 per cent, from fiscal 2014 to fiscal 2024, making it as one of the fastest growing cement manufacturers in India in terms of increase in installed cement grinding capacity during the period, according to a report by Crisil.

On the financial front, the company posted a profit of Rs 98 crore and a total income of Rs 732 crore for the nine months ended December 31, 2024.

Anand Rathi Advisors, IIFL Capital Services and Oneview Corporate Advisors are the book-running lead managers to the issue.