Shri Bajrang Power and Ispat Ltd has filed a draft red herring prospectus with the Securities and Exchange Board of India to increase ₹700 crore via initial public offering.
The proceeds from the issue would be used to repay debt worth ₹400 crore of the company. As of March 2021, total debt of the firm stood at ₹1268.23 crore.
The firm would use ₹120 crore for funding working capital requirements. As of March 2021, its total sanctioned limit of working capital facilities of ₹555 crore, including fund-based and non-fund based limits and the combined amounts sanctioned under the fund based and non-fund based working capital facilities are ₹325 crore and Rs230 crore, respectively. Equirus Capital Pvt Ltd
and SBI Capital Markets Ltd are the main managers to the issue.
For financial year 2021, Bajrang Power reported a revenue of ₹3031.21 crore versus ₹2663.71 crore a year ago. Net profit for the period stood at ₹298.93 crore against ₹141.05 crore past year.
Shri Bajrang Power and Ispat is one of the leading integrated steel firms based in central India and is one of the top 10 players in India in terms of capacity for iron ore pellets, iron ore beneficiation and sponge iron.
The companies utilizes its captive iron mine with an approval to mine 1.2 MTPA and manganese ore mines to manufacture intermediate and long steel products, such as, TMT bars, ERW pipes manufactured through tubular section mill, wire rods, HB wires including binding wires, ferro alloys, steel billets, iron pellets and sponge iron.
The company operates three manufacturing units in Raipur, Chhattisgarh which has abundant reserves of iron ore, iron ore fines and coal mines, its primary raw material sources. The company is also in the process of expanding its capacity for sponge iron, steel melting, rolling mill, ferro alloys, captive power and setting up a galvanising plant, which is expected to be completed within Financial 2022. Further, it intends to set up a 50MW solar power plant at Raipur.
As of 31 May 2021, the collective saleable metal capacity of its units was 1.76 million metric tonne per annum (MTPA). It also has a captive power capacity of 83 MW at ita units including 50 MW from waste heat recovery.
