Kent RO Systems and Four Other Companies Get SEBI's Green Light for IPOs

India's stock market is buzzing, and it just got louder. SEBI, the country's capital markets regulator, has approved initial public offerings (IPOs) for five companies: Kent RO Systems, Karamtara Engineering, Vidya Wires, and Mangal Electrical. The move reflects a thriving IPO environment, especially in the manufacturing and energy sectors.

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IPO Wave in Full Swing

This isn't just a one-off. SEBI has been busy. Earlier this month, six other firms, including HDB Financial Services (linked to HDFC Bank) and Vikram Solar, also got the go-ahead. It's clear: investor interest is rising, and more companies are feeling ready to go public.

Kent RO Systems: From Kitchen Staple to Market Leader

In 1999, Mahesh Gupta founded Kent RO Systems, helping to kick off the water purification revolution in India. What started with RO purifiers has since expanded into air purifiers, kitchen appliances, vacuum cleaners, and even fans under its "Kuhl" brand.

Now, Kent is gearing up to go public, but not in the usual way. This IPO will be a full offer-for-sale (OFS). That means no new money is being raised for the business, just a shift in ownership. The promoters, including Mahesh Gupta and family, are offloading 10 million shares, which is about 10% of their massive 99.77% stake.

Why Now? A Look at the Numbers

Kent's financials are looking strong. In FY24, revenue increased to ₹1,178 crore, an 8.7% rise over the previous year, and profit nearly doubled to ₹166–167 crore. In the first half of FY25 alone, revenue reached ₹637 crore, with water purifiers still accounting for 85% of sales.

It's still behind Eureka Forbes in terms of size (which reached ₹2,189 crore in FY24), but Kent stands out in terms of technology and innovation. For example, it was the first Indian brand to earn NSF/ANSI 58 certification and now offers purifiers with IoT features and zero-water-wastage tech.

Manufacturing & Reach: Built for Scale

Kent's production is spread across four facilities, one in Roorkee and three in Noida. The Roorkee plant handles purifiers and softeners, while Noida covers everything else, including a major warehouse.

With a distribution network spanning 15,000 pin codes, 5,000 technicians, and 1,800 distributors, Kent's footprint is massive. It also exports to over 30 countries, including the UAE, Nepal, and Bangladesh, and has its sights set on entering the U.S. market.

What's the IPO Really For?

Since this is a promoter-led OFS, Kent isn't raising money for new projects. The goal is to unlock value for existing shareholders while raising the company's public profile. A public listing could also help Kent attract better partnerships and institutional investors.

Motilal Oswal Investment Advisors and JM Financial are leading the IPO effort, with KFin Technologies acting as the registrar.

India's IPO Scene: Heating Up Fast

After a record-breaking 2024, where companies raised over ₹1.6 lakh crore, 2025 is already shaping up to be another strong year. With about 14 companies already tapping into public markets, SEBI is witnessing activity across various industries, including finance, energy, logistics, and consumer goods.

Even smaller firms are joining the wave. However, SEBI has been tightening the rules for SME IPOs, such as requiring better financial performance and locking in promoters for longer periods, to ensure higher-quality listings.

The Big Question: Will Investors Bite?

Many market watchers believe Kent's solid track record, trusted brand, and national service network will draw investors. Still, there's scepticism. Some social media users have complained about rising maintenance costs and the availability of cheaper third-party parts.

Despite these concerns, Kent's substantial profits and technological innovations could still make it attractive, especially to institutional investors seeking dependable consumer brands.

What's Next? Key Dates to Watch

As of mid-June 2025, Kent's IPO is expected to open soon. According to its draft red herring prospectus, the share allotment and listing are expected to occur by the end of June. Keep an eye on the issue price, how quickly the IPO gets subscribed, and the grey-market premium (GMP); these will be early signals of investor mood.

Meanwhile, the other newly approved firms, Karamtara Engineering, Vidya Wires, and Mangal Electrical, are also preparing to hit the market. It's a sign that India's manufacturing sector is feeling bullish.

Final Thoughts

Kent's IPO is more than just a listing; it's a milestone for a company that helped bring RO systems into millions of Indian homes. Though it's not raising fresh funds, going public could give Kent stronger market credibility and open doors for future growth.

Whether this IPO becomes a big hit depends on pricing, timing, and how investors weigh Kent's strengths against its challenges. But one thing's for sure: this is one of the most talked-about IPOs of 2025, and it could set the tone for the rest of the year in India's booming IPO space.