New Delhi-based defence equipment maker SMPP, which manufactures critical defence equipment like personal protection, platform protection, and large calibre ammunition, has field for a Rs 4,000 crore initial share sale.
The issue consists of a fresh issue of Rs 580 crore and an offer for sale worth Rs 3,420 crore by its promoter Shiv Chand Kansal. Currently Kansal holds 50 per cent stake in the company, according to the draft red herring prospectus field with the Securities and Exchange Board.
The proceeds from the fresh issue will be used for setting up an ammunition manufacturing facility for its arm SMPP Ammunition.
The company designs and manufactures defense equipment, and specialises in ammunition components, personal protection products, and protection kits for land, air, and sea platforms.
It offers critical products for the armed forces, police, paramilitary, and security agencies, including combustible cartridge cases, bullet-resistant jackets, armor plates, ballistic helmets, and vehicle protection kits. It has an annual capacity of 4,08,000 protection products and 1,20,000 ammunition components as of June 2024.
In the June 2024 quarter, the company reported a revenue of Rs 145.77 crore against Rs 52.54 crore a year ago. Net profit for the quarter was at Rs 42.59 crore as against Rs 9.21 crore a year ago.