KSH International, a Pune based manufacturer of magnet winding wires, has raised Rs 213 crore from anchor investors ahead of its Rs 710 crore initial public offering. The anchor allocation was completed on December 15, a day before the IPO opens for public subscription.
The KSH International IPO consists of a fresh issue of shares worth Rs 420 crore and an offer for sale of Rs 290 crore by existing shareholders. The issue has been priced in a band of Rs 365 to Rs 384 per share, with anchor investors allotted shares at the upper end of the price band.
According to regulatory filings, KSH International allocated 55.46 lakh equity shares to 10 anchor investors at Rs 384 per share. Of the total shares allotted, 41.4 lakh equity shares were allocated to five domestic mutual funds, including Kotak Mahindra Asset Management Company, HDFC Asset Management Company, LIC Mutual Fund, and ITI Mutual Fund.
Kotak Mahindra AMC emerged as the largest anchor investor, acquiring 20.83 lakh shares, translating to an investment of around Rs 80 crore. In addition to mutual funds, the anchor book also saw participation from insurance companies and global institutional investors.
Anchor investors and issue structure
Among insurance companies, Kotak Mahindra Life Insurance Company and Edelweiss Life Insurance Company were allotted a combined 4.68 lakh shares. Other institutional participants in the anchor round included Malabar India Fund, HSBC Global Investment Funds, and Societe Generale.
The public issue of KSH International will open for subscription on December 16 and close on December 18. The company is approaching the capital markets to raise funds primarily to strengthen its balance sheet and support expansion plans across its manufacturing facilities.
KSH International claims to be the third largest manufacturer of magnet winding wires in India. The company supplies its products to a wide range of end use industries, including electrical equipment, automotive components, power generation, and industrial machinery.
As per the offer document, KSH International plans to utilise around Rs 226 crore from the fresh issue proceeds for repayment or prepayment of certain borrowings. This is expected to reduce interest costs and improve overall financial flexibility.
The company has also earmarked Rs 8.8 crore for the purchase and installation of a rooftop solar power plant at its Supa manufacturing facility, aligning with its efforts to improve energy efficiency and reduce power costs.
In addition, approximately Rs 87 crore will be used for the purchase and installation of new machinery for capacity expansion at the Supa facility, along with new machinery at Unit 2 in Chakan, Pune. The remaining funds from the fresh issue will be used for general corporate purposes.
Nuvama Wealth Management and ICICI Securities are acting as the book running lead managers for the KSH International IPO.
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