Kanodia Cement files DRHP with Sebi for IPO as a pure Offer for Sale. Promoters plan to sell 1.49 crore shares. No fresh issue; proceeds go to shareholders.
Kanodia Cement Limited, one of India’s fastest-growing cement manufacturers, has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for its proposed Initial Public Offering (IPO). The IPO will be a pure Offer for Sale (OFS) of 1.49 crore equity shares, with no fresh issue component, marking a strategic move by the promoters and key shareholders to partially exit their holdings.
IPO Structure: 100% Offer for Sale
According to the DRHP dated May 23, 2025, the entire IPO comprises an Offer For Sale by existing shareholders. The breakdown of the offer includes:
- Nupoor Kanodia Beneficiary Trust: 81.91 lakh shares
- Gautam Kanodia (Promoter Group): 44.77 lakh shares
- Swati Kanodia: 22.42 lakh shares
- Gautam Kanodia HUF: 2,730 shares
As there is no fresh issue, Kanodia Cement will not receive any proceeds from the IPO. The raised capital will go directly to the selling shareholders.
Lead Managers and Listing Plans
Anand Rathi Advisors, IIFL Capital Services, and Oneview Corporate Advisors have been appointed as book-running lead managers for the public issue. The equity shares are proposed to be listed on BSE and NSE, subject to regulatory approvals.
Company Overview: Rapid Growth in Cement Manufacturing
Founded in 2009, Kanodia Cement has carved a niche in the Indian cement industry by focusing on blended cement varieties such as Portland Pozzolana Cement (PPC) and Composite Cement (CC). It operates through a strategically placed network of Satellite Grinding Units (SGUs) across Uttar Pradesh and Bihar.
As of December 31, 2024, the company runs five SGUs with a total installed cement grinding capacity of 3.54 million tonnes per annum (MTPA).
Kanodia Cement’s growth trajectory has been notable. According to Crisil, the company’s grinding capacity grew at a CAGR of 22.12% from FY14 to FY24, far outpacing the industry average of 7.31% and peer group average of 9.64%, making it one of the fastest-growing players in the sector.
Financial Highlights
For the nine months ending December 31, 2024, Kanodia Cement reported:
- Total Income: ₹732 crore
- Net Profit: ₹9.8 crore
The financials reflect stable operations and a foundation strong enough for public market entry.
What It Means for Investors
While the IPO won’t bring new capital into the company, it offers an exit opportunity for promoters and provides a chance for investors to gain exposure to a fast-growing cement manufacturer with a robust regional presence and impressive capacity growth.
More details, including the IPO price band, lot size, and tentative listing date, will be disclosed in the final prospectus closer to the launch.
