Synopsis: Malabar India Fund acquired a 1.5% stake in KSH International ahead of its Rs. 745-crore IPO, which includes a Rs. 420-crore fresh issue and Rs. 325-crore OFS, primarily funding debt repayment, new machinery, and a solar power plant.
Malabar India Fund has expanded its diversified portfolio with a pre-IPO investment in this leading company as it prepares for its Rs.745-crore public offering. The promoters have slightly trimmed their stake ahead of the IPO, which aims to strengthen the company’s balance sheet through debt reduction, machinery upgrades, and a planned solar power project.
Malabar India Fund has strategically acquired a 1.5% stake in KSH International by purchasing shares worth Rs. 32.7 crore ahead of the company’s upcoming initial public offering (IPO), planned to raise Rs. 745 crore. This move indicates strong investor interest in KSH International as it prepares to enter the public markets.
Malabar India Fund holds significant stakes across several companies, with the highest holding value in Neuland Laboratories at Rs. 1,216.9 crore. Other major holdings include Aptus Value Housing (Rs. 798.2 crore), Safari Industries (Rs. 555.5 crore), Affle 3i (Rs. 513.3 crore), and LE Travenues Tech (Rs. 460.3 crore), reflecting the fund’s strategic investments in diverse sectors. Malabar Investments publicly holds 22 stocks with a net worth of over Rs. 5,691.9 Cr.
The promoters of KSH International, Rajesh and Rohit Hegde, sold a combined 9.11 lakh shares, which translates to about 1.6% of the pre-IPO equity, at Rs. 384 per share. This transaction values the company at over Rs. 2,600 crore. Following this sale, the promoters’ holdings have slightly decreased from 20% each to 19.2% each.
The IPO itself is structured with a fresh issue of shares worth Rs. 420 crore, along with an offer-for-sale (OFS) of Rs. 325 crore by the Hegde family. The funds raised through this IPO will be primarily utilized for debt repayment amounting to Rs. 226 crore, the purchase of new machinery costing Rs. 90 crore, and the setup of a solar power plant with an allocation of Rs. 10.4 crore.
To manage this public offering, Nuvama Wealth Management and ICICI Securities have been appointed as the book-running lead managers, tasked with overseeing and coordinating the IPO process. This structured approach and clear fund utilization plan are likely to instil confidence among potential investors.
About the company
KSH International Limited is India’s third-largest manufacturer and the leading exporter of magnet winding wires, according to the CARE Report. Operating under the ‘KSH’ brand, the company supplies a wide range of products to OEMs across industries such as power, renewables, railways, automotive, and industrial sectors. Its product portfolio includes enamelled round and rectangular wires, paper-insulated wires, continuously transposed conductors (CTC), and bunched insulated copper wires.
Written by Manideep Appana
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