Kanodia Cement files DRHP with Sebi for IPO; entirely offer for sale
Kanodia Cement Limited, one of India's fastest-growing cement manufacturers, has taken a significant step towards entering the public markets. The company has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for its proposed Initial Public Offering (IPO). According to the regulatory filing dated May 23, 2025, the issue will consist entirely of an Offer For Sale (OFS) of 1.49 crore equity shares, with no fresh issue component, meaning the company itself will not receive any proceeds from the offering.
As per the DRHP, the IPO will allow existing shareholders—including promoters and promoter group entities—to offload part of their holdings. The selling shareholders include the Nupoor Kanodia Beneficiary Trust, a promoter entity, offering 81.91 lakh shares; Gautam Kanodia, part of the promoter group, offering 44.77 lakh shares; Swati Kanodia, an individual shareholder, selling 22.42 lakh shares; and Gautam Kanodia HUF, selling 2,730 shares.
Since this is a pure OFS, all proceeds from the IPO will go directly to the selling shareholders. The total offer size in monetary terms will be disclosed once the price band is finalised closer to the IPO date.
Anand Rathi Advisors, IIFL Capital Services, and Oneview Corporate Advisors have been appointed as the book-running lead managers to the issue. The equity shares are proposed to be listed on both the BSE and the NSE, subject to necessary approvals.
Founded in 2009, Kanodia Cement is a cement manufacturing company that operates through a network of Satellite Grinding Units (SGUs) strategically located in Uttar Pradesh and Bihar. The company specialises in producing blended cement varieties such as Portland Pozzolana Cement (PPC) and Composite Cement (CC), catering to both business-to-business (B2B) and business-to-consumer (B2C) segments.
Kanodia Cement's business model uniquely combines contract manufacturing for other cement brands and in-house brand development. As of December 31, 2024, the company operates five SGUs with a total cement manufacturing capacity of 3.54 million tonnes per annum (MTPA).
According to a report by Crisil, the company's cement grinding capacity has grown at a compound annual growth rate (CAGR) of 22.12 percent between FY2014 and FY2024—significantly outpacing the industry average of 7.31 percent and the peer average of 9.64 percent—positioning Kanodia Cement as one of the fastest-growing players in India's cement sector.
On the financial front, Kanodia Cement reported a net profit of ₹ 9.8 crore and a total income of ₹ 732 crore for the nine months ended December 31, 2024. The numbers reflect stable operational performance and underscore the company's readiness for market listing.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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