SMPP IPO Upcoming
Already have an account? Apply now
About SMPP
Established in 1985, SMPP is a leading Indian defense manufacturer specialising in personal protection gear, platform protection systems, and ammunition components. Headquartered in New Delhi, the company serves both domestic and international defense clients, including the Indian Armed Forces. SMPP’s commitment to innovation is evident through its dedicated R&D efforts, enabling the development of advanced and reliable defense solutions. With a strong financial track record, including debt-free operations and significant cash reserves, SMPP has positioned itself as a trusted supplier in the defense sector. The company is planning to expand its capabilities by setting up a new ammunition manufacturing facility through its subsidiary, SMPP Ammunition.
Financials of SMPP
*All figures are in ₹ Crores.
Issue size
| Funds Raised in the IPO | Amount |
| Overall | ₹4000 crores |
| Fresh Issue | ₹580 crores |
| Offer for sale | ₹3420 crores |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Capital expenditure | 437 (75%) |
| General corporate purposes | 143 (25%) |
Strengths
- Established presence in the defense sector with over three decades of experience.
- Diverse product portfolio catering to personal and platform protection, as well as ammunition components.
- Strong financial health is characterized by debt-free operations and substantial cash reserves.
- Ongoing investment in R&D fosters innovation and advanced product development.
- Strategic expansion plans, including a new ammunition manufacturing facility to enhance production capabilities.
Risks
- High dependency on government contracts, making revenues susceptible to policy and budgetary changes.
- Stringent quality and compliance standards in the defense sector could lead to potential delays or rejections.
- Geopolitical factors and international relations may impact export opportunities and operations.
- The capital-intensive nature of defense manufacturing could affect liquidity during expansion phases.
- Potential risks associated with scaling up new manufacturing facilities, including operational and integration challenges.