Knowledge Marine & Engineering Works Limited's IPO to open on Tuesday, March 09, 2021 with fixed Price Band of Rs. 37 per Equity Share each of Face Value of Rs. 10 each

• Initial Public Offering of up to 27,36,000 Equity Shares
• The Price band of Rs. 37 per equity share
• Minimum Bid lot is 3000 equity shares and in multiples of 3000 equity shares thereafter
• Issue opening date - Tuesday, March 09, 2021 and Issue closing date - Friday, March 12, 2021
• The Public Issue and Net Issue will constitute 26.73% and 25.32% respectively of the post-issue paid-up equity share capital of the company

MUMBAI, India, March 5, 2021 /PRNewswire/ -- Knowledge Marine & Engineering Works Limited ('Company'), engaged in the business of owning and operating of Marine Crafts for dredging along with repairs and maintenance/refits of Marine Crafts and Marine Infrastructure will be launching its initial public offering ('IPO' or the 'Offer') which is scheduled to open on Tuesday, March 09 and close on Friday March 12, 2021, with a fixed price band of Rs. 37 per Equity Share of face value of Rs. 10 each of the Company (the 'Equity Shares').

Initial Public Offer of 27,36,000 equity shares of face value of Rs. 10/- each (the 'Equity Shares') of Knowledge Marine & Engineering Works Limited ('The company' or 'KMEWL' or 'The Issuer') at an issue price of Rs. 37 per Equity Share for cash, aggregating up to Rs. 1012.32 Lakhs ('Public Issue') out of which 1,44,000 equity shares of face value of Rs.10 each, at an Issue Price of Rs. 37 per Equity Share for cash, aggregating Rs. 53.28 Lakhs will be reserved for subscription by the market maker to the issue (The 'Market Maker Reservation Portion'). The Public Issue less market maker reservation portion i.e. issue of 25,92,000 equity shares of face value of rs.10 each, at an issue price of Rs.37 per equity share for cash, aggregating up to Rs. 959.04 Lakhs is herein after referred to as the 'Net Issue'. The Public Issue and Net Issue will constitute 26.73% and 25.32% respectively of the post-issue paid-up equity share capital of the company.

This Issue is being made in terms of chapter IX of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) regulations, 2018 [the 'SEBI' (ICDR) regulations'], as amended. In terms of rule 19(2)(b)(I) of the securities contracts (regulation) rules, 1957, as amended, this is an Issue for at least 25% of the Post-Issue Paid-up equity share capital of the company. This issue is a Fixed Price Issue and allocation in the net issue to the public will be made in terms of regulation 253 of the SEBI (ICDR) regulations, as amended. For further details, please refer 'Issue Procedure' on page 208 of the prospectus.

All potential investors shall participate in the issue through an application supported by blocked amount ('ASBA') process including through UPI mode (as applicable) by providing details about the bank account which will be blocked by the self-certified syndicate banks ('SCSBS') for the same. For details in this regard, specific attention is invited to 'issue procedure' on page 208 of the prospectus.

All the proceeds from the Offer will be coming to the Company as a fresh issue proceeds.

HEM Securities Limited is the Book Running Lead Manager ('BRLM') to the Offer.

The Equity Shares of Knowledge Marine & Engineering Works Limited are proposed to be listed on the SME Exchange of BSE.

About Knowledge Marine & Engineering Works Limited:

Knowledge Marine & Engineering Works Limited is engaged in the business of owning, operating and chartering of Marine Crafts for dredging along with repairs and maintenance/refits of Marine Crafts and Marine Infrastructure. The group started its business in the year 2013 under the name Kamal Marine & Engineering Works Private Limited, which undertakes the business of repair/ refits of marine crafts. With a two years of marine engineering experience and sustainable financial growth, the group expanded to owning and operating small crafts under the flagship of Knowledge Marine & Engineering Works Private Limited with its head office at Mumbai. Over the years the company has become an established player in the small craft business segment in India and have evolved from a small ship-repair unit to a ship-owning Company.

KMEWL has an approximate asset value of around Rs. 25 crores and an order book of over Rs. 100 crores. The company has two major segments which includes following:  Owning Operating and Chartering of Marine crafts for dredging services; and Ancillary services - conducting marine hydrographic & magnetometer survey, providing technical manpower solutions for maintenance and operation of vessels and repairs and Maintenance/ Refits of Marine Crafts and Marine Infrastructure.

Company had spread its footprints across major ports of India as its client base such as Kolkata Port, Haldia Port, Visakhapatnam Port, Paradip Port, Kandla Port, Mumbai Port, Karwar Port etc.

Company has stable and secured business model which includes long term contracts of 5 to 7 years with the client which assures continuous flow of revenue stream, strong EBIDTA and PAT margins of almost 36% & 20% respectively, high return on capital employed which stood at 39% in FY 2019-2020, short payback period of 3-3.5 years towards the fleet cost, Company's owned fleet of marine crafts allows the Company with abundant flexibility in executing the work effectively and efficiently, which gives a competitive edge over other players in the market.