Ardee Engineering to Raise ₹580 Crore Through IPO

Ardee Engineering Limited, an integrated design, engineering and manufacturing company having three primary business lines - pre-engineered buildings (PEB), material handling systems (MHS) and engineering services has filed the draft red herring prospectus (DRHP) with capital markets regulator SEBI to raise Rs. 580 crore through an initial public offering (IPO).

According to the DRHP, the Initial Public Offering of the Hyderabad headquartered company consists of a Fresh Issue of equity shares aggregating up to Rs. 500 crore and an Offer for Sale of equity shares aggregating up to Rs. 80 crore by the Promoter Selling Shareholder, Chandra Sekhar Moturu.

Ardee proposes to utilize Rs. 279.6 crore from the Net Proceeds of the Fresh Issue for capex requirements towards setting up two new manufacturing facilities at Seetharampur, Telangana; Rs. 44.8 crore to fund the capex requirements towards setting up a new integrated manufacturing facility at Parawada, Andhra Pradesh; Rs. 65 crore for prepayment or re-payment, in full or in part, of certain outstanding borrowings availed by the company and rest for general corporate purposes.

Incorporated in 2008 as a partnership firm, Ardee’s key customers today 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).

Ardee reported FY24 revenue from operations at Rs. 620 crore with a PAT of Rs. 29 crore.

IIFL Capital Services Limited and JM Financial Limited are the book running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.