Shri Bajrang Power and Ispat files prospectus for INR500 crore IPO

Shri Bajrang Power and Ispat has filed its IPO draft prospectus with SEBI. The Raipur-based company plans to raise INR500 crore (INR5 billion) by issuing fresh shares. These funds are proposed to be used towards repayment/pre-payment of borrowings (INR375 crore) and for general corporate purposes. Shri Bajrang Power and Ispat IPO will be managed by IDBI Capital Markets, Equirus Capital, and SBI Capital Markets Limited.

The company is promoted by Suresh Goel, Rajendra Goel, Narendra Goel, Anand Goel, Atlanta Securities Private Limited (ASPL) and Banka Finance & Securities Private Limited (BFSPL).

As the name suggests, the company is involved in manufacturer of steel products. Its current product portfolio comprises of TMT bars, wire rod, HB wires, sponge iron, pellets, steel billets, ferro alloys, and fly ash bricks. The company is part of Goel group which is also involved in generation and sale of hydro-power, generation of captive power, and operating a regional television channel.

Shri Bajrang Power and Ispat IPO: Three facilities and expanding

The company has three strategically located manufacturing facilities in Raipur – the state capital of Chhattisgarh. Currently, the company’s production capacity is at 360,000 tonnes per annum (TPA). Shri Bajrang Power and Ispat is setting up a new sponge iron plant, of 150,000 TPA, at its Unit III Tilda facility. This would significantly enhance the company’s sponge iron installed capacity from 360,000 TPA to 510,000 TPA. Similarly, production capacity of Billets and Blooms will increased from 235,200 MTPA to 264,000 MTPA once the plant is fully commissioned during Financial Year 2020.

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Shri Bajrang Power and Ispat is also setting up a replacement facility at Unit III, comprising of: (a) steam turbines capable of generating 30 MW per day, (b) waste heat recovery boilers with an aggregate capacity of 62 TPH; and, (c) machinery for facilitating the transfer of surplus power from Unit III to Unit I, (namely an external combustor, 132 Kva power transmission lines, and, a sub-station with 20/25 Mva generator transformer).

In the year ended 31 March 2018, the company posted net profit of INR36.9 crore, marking a 30% jump from INR28.2 crore it earned in FY2017. Its revenues also jumped 19% to INR1,864.4 crore in the latest year.

Shri Bajrang Power and Ispat files prospectus for INR500 crore IPO
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Krishna Bagra

Coming from a family of investors and financial analysts, Krishna learnt wading through regulatory filings pretty early in her career. At IPO Central, Krishna plays twin roles of contributor and head of research desk. She can also be reached at +krishnabagra .

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