Shri Bajrang Power, Ispat files `700-cr IPO papers

Integrated steel company Shri Bajrang Power and Ispat Ltd has filed preliminary papers with capital markets regulator Sebi to raise Rs 700 crore through an initial share-sale.

The initial public offer (IPO) consists of issue of equity shares aggregating up to Rs 700 crore, according to draft red herring prospectus (DRHP). Proceeds from the issue would be utilised towards repayment or pre-payment, of certain borrowings of the company, funding incremental working capital requirements and for general corporate purposes.

Shri Bajrang Power and Ispat Ltd (SBPIL) is one of the leading integrated steel companies based out of central India and a key player in the country in terms of capacity for iron ore pellets, iron ore beneficiation and sponge iron. SBPIL utilises 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 Raipur-based firm has a consistent track record of delivering operating profitability, and since fiscal 2005, has remained profitable in each of the financial year. It currently operates three manufacturing units located in Raipur. Further, the company intends to set up a 50MW solar power plant at Raipur.