BS Sponge Ltd filed draft papers with SEBI on Wednesday to raise ₹1,000 crore through an IPO. The offer includes a fresh issue of ₹800 crore and an offer for sale of ₹200 crore. The company plans to use most of the money to pay off its existing bank debts.
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).
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, according to the Draft Red Herring Prospectus (DRHP) filed on Wednesday.
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. The remaining proceeds will be used for general corporate purposes.
BS Sponge is a manufacturer of steel and steel products, with a diversified portfolio spanning multiple stages of the steel value chain.
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. Its manufacturing facility is supported by a 67-MW captive power plant, as of the date of the DRHP.
The merchant bankers to the issue are ICICI Securities and Motilal Oswal Investment Advisors.