Shri Bajrang Power and Ispat file IPO papers to raise 700 crore
Shri Bajrang Power and Ispat Ltd has filed a draft red herring prospectus with the Securities and Exchange Board of India to raise ₹700 crore via the initial public offering.
The proceeds of the issue will be used to repay a debt of ₹400 business crore. In March 2021, the company’s total debt stood at ₹1268.23 crores.
The company will use ₹120 crore for financing working capital requirements. In March 2021, its sanctioned total limit of working capital facilities of ₹555 crore, including fund-based and non-fund-based limits and the total 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 of the issue.
For fiscal year 2021, Bajrang Power reported revenue of ₹3,031.21 crore against ₹2,663.71 crore a year ago. The net result for the period amounts to ₹298.93 crores against ₹141.05 crores last year.
Shri Bajrang Power and Ispat is one of the leading integrated steel companies based in central India and one of the top 10 players in India in terms of iron ore pellet capacity, iron ore beneficiation and spongy iron.
The company uses its captive iron mine with a license to operate 1.2 MTPA and manganese ore mines to manufacture intermediate and long steel products, such as TMT bars, ERW pipes made by a rolling mill. tubular section, wire rods, HB wires, including binding wires, ferro alloys, steel billets, iron pellets and iron sponge.
The company operates three manufacturing units in Raipur, Chhattisgarh, which has abundant reserves of iron ore, iron ore fines and coal mines, its main sources of raw materials. The company is also in the process of expanding its capacity of sponge iron, steel smelting, rolling mill, ferroalloys, captive energy and setting up a galvanizing plant, which is expected to be completed during the next year. ‘fiscal year 2022. In addition, it intends to set up a 50 MW solar power plant in Raipur
As of May 31, 2021, the total salable metal capacity of its units was 1.76 million metric tons per year (MTPA). It also has a captive power of 83 MW in its units, including 50 MW of waste heat recovery.
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