KPI Global Infrastructure Limited’s SME IPO to open on January 8, 2019 with an issue price of Rs 80 per equity share of face value Rs. 10 each

·                     Initial Public Offer of upto Rs. 39.93 crore

·                     Market Maker Reservation of upto Rs.  1.99 crore

·                     Net Issue to the Public of upto Rs. 37.93 crore

·                     Fresh Issue of upto 49,92,000 Equity Shares

·                     Fixed Issue Price of Rs. 80 per Equity Share

·                     Issue Opening Date – January  8, 2019 and Issue Closing Date – January  11, 2019

·                     Bid lot size of 1600 equity shares and in multiples of 1600 equity shares thereafter with a Minimum Application Size of Rs. 1,28,000/-

·                     The issue and the net issue will constitute 27.63% & 26.25%, respectively, of the post issue paid up equity share capital of company

 KPI Global Infrastructure Limited (“Company”), a solar power generating Company focused on providing solar power, under the brand name of ‘Solarism’ will launch its SME initial public offering (the “IPO”), which is scheduled to open on January 8, 2019 and close on January 11, 2019, with a fixed price of Rs. 80 per Equity Share of face value of Rs. 10 each of the Company (the “Equity Shares”).

The IPO is of upto 49,92,000 equity shares of face value of Rs. 10 each  for cash at a price of Rs. 80 per equity share including a share premium of Rs. 70 per equity share (the “Issue Price”), aggregating upto Rs. 39.93 Crore (the “Issue”) of which 2,49,600 equity shares of face value of Rs. 10 each for cash at a price of Rs. 80 per equity share aggregating to Rs. 1. 99 Crore are reserved for subscription by the market maker to the issue (the “Market Maker Reservation Portion”). The issue less market maker reservation portion i.e. 47,42,400 equity shares of face value of Rs. 10 each for cash at a price of Rs. 80 per equity share, aggregating to Rs. 37. 93 crore, is hereinafter referred to as the “Net Issue”. The bid lot size is or 1,600 equity shares and in multiples of 1600 equity shares thereafter with a Minimum Application Size of Rs. 1,28,000/-. The issue and the net issue would constitute 27.63% and 26.25%, respectively of the post issue paid up equity share capital of company.

In terms of Regulation 256 of SEBI ICDR Regulations read with the SEBI circular CIR/CFD/POLICYCELL/11/2015 dated November 10, 2015, all the investors applying in a public issue shall use only Application Supported by Blocked Amount (“ASBA”) facility for making payment providing details about the bank account which will be blocked by the Self Certified Syndicate Banks ("SCSBs"). For further details, kindly refer the chapter titled "Issue Procedure" beginning on page 254 of the Prospectus. A copy of the Prospectus has been delivered to the Registrar of Companies (“RoC”), Ahmedabad in accordance with Section 26 of the Companies Act, 2013 along with all the requisite documents. For details of the material contracts and documents available for inspection from the date of the Prospectus up to the Issue Closing Date, kindly refer the chapter titled “Material Contracts and Documents for Inspection” on page 299 of the Prospectus.

Vivro Financial Services Private Limited is the Lead Managers (“LM”) to the Issue. The Registrar to the Issue is Bigshare Services Private Limited. The Equity Shares are proposed to be listed on the SME Platform of BSE.

About KPI Global Infrastructure Limited:

KPI Global Infrastructure Limited (“KPI”) is a solar power generating Company focused on providing solar power, both as an Independent Power Producer (“IPP”) under the brand name of ‘Solarism’ and as service provider to Captive Power Producer (“CPP”) customers. KPI builds, owns, operates and maintains grid connected solar power projects as IPP and generates revenue by entering into Power Purchase Agreements (“PPA”) with third parties for selling power units generated through its solar projects. Currently, KPI has an installed capacity of 15 MW under IPP segment. For sale of this power, the Company has entered into PPAs with reputed customers such as L&T Group*, Mafatlal Industries Limited & Meghmani Organics Limited. The rate of company’s PPAs are currently around Rs. 6.58 per unit, which have been priced at an average of around 7% discount to the prevailing per unit price of the power rates of the DISCOMs, less other adjustments. The Company also develops, transfers, operates and maintains grid connected solar power projects for CPP customers and generate revenue by selling these projects to CPP customers for their captive use requirements.

Both these businesses, IPP & CPP, are currently carried out at the plant located at Sudi & Tanchha village, Amod, Bharuch, Gujarat (Solarism Plant). KPI has established a 13.25 km long 66 KV transmission line from its Solarism Plant to the Gujarat Energy Transmission Corporation Limited (“GETCO”) substation located at Amod, Bharuch, Gujarat (Amod Substation), for evacuation of the solar power generated at the Solarism Plant.

The Company proposes to increase their solar power generation capacity by setting up a solar power project for 25 MW at the Solarism plant. The Company has already entered into PPAs for the proposed 25 MW power project, with reputed customers such as L&T Group*, United Phosphorous Limited and Colourtex Industries Private Limited. Post the commercial commencement, the IPP capacity will increase to 40 MW. The estimated cost of the project is Rs. 132.03 Cr, out of which Power Finance Corporation Limited (“PFC”) has sanctioned a term loan of Rs. 86 Cr and the balance would be met from internal accruals, equity & proceeds from the IPO.

For the financial year ended March 31, 2018 the Company has achieved total operating revenue of Rs. 31.56 Cr with profit after tax of Rs. 11.41 Cr. The networth of the Company as on September 30, 2018 is Rs. 61.48 Cr.