Linjemontage i Grästorp AB (LMG), a 96.12% first-level step-down material subsidiary of Kalpataru Projects International Ltd, has successfully completed its initial public offering and commenced trading on Nasdaq Stockholm on September 25, 2026. The company priced its shares at SEK 46 per share, valuing the firm at approximately SEK 2,356.5 million. According to latest reports, the offering comprises up to 14.3 million existing shares by Kalpataru Power Transmission Sweden AB and other selling shareholders, representing approximately 27.9% of LMG's equity. The subscription period ran from September 17 to September 24, 2026, with the company receiving approval from the Swedish Financial Supervisory Authority (SFSA) on September 16, 2026.
The listing has been enhanced with an over-allotment option worth approximately SEK 98.8 million, potentially bringing the total offering to up to 16.4 million shares representing roughly 32.1% of the company. The total value of the offering amounts to approximately SEK 658.3 million if the over-allotment is fully exercised. Cornerstone investors Tredje AP-fonden and Unionen have committed SEK 290 million for the offering, demonstrating strong institutional confidence in LMG's growth prospects. The listing aims to enhance LMG's visibility and credibility among customers and partners in the Nordic power infrastructure sector, with KPTS intending to remain a long-term major shareholder following the completion of the offering.
LMG demonstrated robust financial growth leading up to the listing, with net sales of SEK 3,225.2 million for FY26 and adjusted EBITA of SEK 244.7 million with a 7.6% adjusted EBITA margin. For Q1 FY27, the company reported net sales of SEK 823.9 million with an adjusted EBITA margin of 10.8%. The company maintains a strong order book of SEK 4,349 million as of June 30, 2026, and operates with a robust net cash position of SEK 172.1 million as of Q1 FY27. LMG's impressive 56.6% CAGR from FY24 to FY26 demonstrates the deep value embedded in Kalpataru's European acquisitions, with the company benefiting from structural investment needs in the region.
LMG operates primarily in Sweden and Norway, focusing on modernizing and expanding electricity grids up to 400 kV. The company benefits from Sweden's serviceable addressable market for grid investments, which is expected to grow at an 11% CAGR until 2030. LMG's order book includes significant projects such as a SEK 1 billion transmission project for Svenska kraftnät won in 2024 and a SEK 779 million substation project secured in 2026. The IPO represents a strategic value-unlocking exercise for Kalpataru Projects, allowing partial monetization of its European business while retaining a strong majority stake of over 67% post-allotment. The transaction is structured entirely as an offer for sale of existing shares, enabling direct monetization for the holding arm while maintaining operational control.
The IPO announcement comes amid strong recent performance by Kalpataru Projects. According to CNBC TV18, the company reported stellar Q1 FY27 results on August 11, 2026, with a 46% year-on-year rise in net profit to ₹312 crore and an all-time high order book of ₹66,607 crore. The company's year-to-date order inflow for FY27 expanded to over ₹11,000 crore as of August 14, 2026, compared to ₹7,668 crore reported as of June 30, 2026. European power grids are undergoing massive capital expenditure cycles to handle renewable integration and growing electrification needs, with the Swedish and Nordic markets particularly attractive due to aging infrastructure.
