Steel and steel products manufacturer BS Sponge Ltd has filed draft papers with capital markets regulator SEBI to raise ₹1,000 crore through an Initial Public Offering (IPO). According to the Draft Red Herring Prospectus (DRHP) filed on Wednesday, the proposed IPO comprises a fresh issue of equity shares worth up to ₹800 crore and an Offer For Sale (OFS) of shares worth up to ₹200 crore by promoters. The company's merchant bankers are ICICI Securities and Motilal Oswal Investment Advisors, bringing together established market players to support the public offering process.
The company proposes to utilise ₹650 crore from the net proceeds of the fresh issue towards repayment or pre-payment, in full or in part, of certain outstanding borrowings and accrued interest thereon. As reported by The Hindu BusinessLine, the remaining proceeds will be used for general corporate purposes. This strategic approach reflects the company's focus on strengthening its balance sheet through debt reduction, with debt repayment being the largest specified allocation within the company's proposed use of funds. The repayment may cover these obligations either fully or partly, according to the filing.
BS Sponge is a manufacturer of steel and steel products, with a diversified portfolio spanning multiple stages of the steel value chain. According to the DRHP, its product portfolio includes semi-finished steel products such as sponge iron, billets and slabs, as well as value-added finished products including thermo-mechanically treated (TMT) bars, hot rolled coils (HR Coils), wire rods, electric resistance welded (ERW) pipes and tubes, and ferro alloys. The company's integrated manufacturing operations span the conversion of iron ore into sponge iron and the production of value-added finished steel products.
The company's manufacturing facility is supported by a 67-MW captive power plant, as of the date of the DRHP filing. The merchant bankers to the issue are ICICI Securities and Motilal Oswal Investment Advisors, with the company's manufacturing operations spanning the conversion of iron ore into sponge iron and production of value-added finished steel products. This partnership brings together established market players in the IPO advisory space to support the company's public offering process.
