CRISIL Research has assigned CRISIL SME fundamental grade ‘3/5’ (pronounced ‘SME three on five’) to K.P. Energy Ltd (KPEL).

The grade indicates that the fundamentals of the company are ‘good’ relative to other SMEs in India.

However, it is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. Nor is it a recommendation to buy/ sell/ hold the securities it relates to (or any other securities).

It does not comment on the issue price, future market price or suitability for a particular investor.

KPEL, incorporated in 2010 and headquartered in Surat, provides services to the wind energy sector.

Its activities include identifying wind sites, acquiring land and permits, EPC services for setting up wind project infrastructure – including power transmission and O&M services for the entire balance of plant aspects of a wind farm – during the life of the project post commissioning.

The proposed IPO is in the form of a fresh issue (book building) of 0.92 mn equity shares. The company plans to spend most of it towards funding its capital requirements to set up a 2.1 MW wind power project in Matalpur, Gujarat.