SMPP Ltd Files IPO Papers with Sebi to Raise ₹4,000 Crore for Defense Equipment Expansion

SMPP Ltd has submitted preliminary papers to the capital markets regulator, Sebi, to raise ₹4,000 crore through an initial public offering (IPO). The IPO consists of a fresh issue of equity shares amounting to ₹580 crore and an offer for sale (OFS) of equity shares worth ₹3,420 crore by promoter Shiv Chand Kansal, who currently holds a 50% stake in the company. SMPP may also consider a pre-IPO placement of securities valued at ₹116 crore, which would reduce the size of the fresh issue.

The proceeds from the fresh issue will primarily be used for capital expenditures totaling ₹437.04 crore, which includes constructing buildings, land development, and acquiring plant and machinery for a new ammunition manufacturing facility via investment in a subsidiary. The remaining funds will be allocated for general corporate purposes.

Founded in 1992, SMPP is an Indian designer and manufacturer of defense equipment, including ammunition components, personal protection products, and platform protection kits for land, air, and sea operations. The company has been producing combustible cartridge cases for tank and artillery ammunition. Its protection offerings include bullet-resistant jackets, armor plates, ballistic helmets, and shields for armed forces, police, paramilitary, and other security entities. Additionally, it provides platform protection kits for vehicles, patrol boats, aircraft, and helicopters, designed for use in combat, counter-insurgency, and anti-terror operations.

Axis Capital, ICICI Securities, IIFL Securities, JM Financial, and Motilal Oswal Investment Advisors are the book-running lead managers for the issue, and the shares of SMPP will be listed on the BSE and NSE.

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