Kent RO Systems, a pioneer in water purification technology in India, has filed its issue prospectus with the Securities and Exchange Board of India (SEBI). The IPO is structured as an Offer for Sale (OFS) of up to 1,00,94,568 equity shares. The OFS is being undertaken by the company’s promoters.
Key Highlights of Kent RO’s IPO
Promoter Stake Sale
- Mahesh Gupta, founder and Chairman, will sell 56,35,088 shares.
- Sunita Gupta, promoter, will sell 33,60,910 shares.
- Varun Gupta, promoter and Managing Director will sell 10,98,570 shares.
The entire proceeds from the OFS will go to the selling shareholders. Kent RO Systems will not receive any direct funds from the IPO.
Key Managers and Registrars
- Book Running Lead Managers: Motilal Oswal Investment Advisors and JM Financial
- Registrar to the Offer: KFin Technologies.
Financial Performance of Kent RO Systems
Kent RO Systems has showcased consistent financial growth over recent years. For the six months ended 30 September 2024, the company reported a revenue of INR 637,19 crore, contributing to a total income of INR 684.02 crore. Key financial metrics include:
- FY 2024 Revenue: INR 1,178.19 crore, up from INR 1,084.39 crore in FY 2023.
- FY 2024 PAT: INR 166.55 crore, a substantial rise from INR 97.16 crore in FY 2023.
- Earnings Per Share (EPS): INR 15.67 in FY 2024, compared to INR 9.08 in FY 2023.
Kent RO’s consistent revenue and profitability growth highlight its strong operational efficiency and market leadership.
About Kent RO Systems
Founded in 1999 by Mahesh Gupta, Kent RO Systems revolutionized water purification in India by introducing reverse osmosis (RO) technology. Over the years, the company has diversified into products like water softeners, kitchen appliances, and BLDC fans. Its flagship innovations include IoT-enabled purifiers and zero-water-wastage technology.
Manufacturing and Global Reach
- Manufacturing Facilities: Four advanced units in Roorkee and Noida, certified for quality, environmental, and safety standards.
- Global Presence: Products are exported to over 30 countries, including the UAE, Nepal, and Bangladesh.
- Service Network: A robust network of 1,800 partners and 5,000 technicians, ensuring service across more than 15,000 pin codes in India.
Conclusion
Kent RO Systems’ IPO marks a significant milestone in its growth story. With its innovative product portfolio, robust financial performance, and market leadership, the IPO is expected to attract considerable investor interest. The offering provides an opportunity for stakeholders to participate in the success of a company synonymous with water purification in India.
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