A-One Steels India, an integrated steel manufacturer, filed preliminary papers with capital markets regulator Sebi for raising Rs 650 crore through an initial public offering.
The IPO comprises a fresh issue of equity shares worth up to Rs 600 crore and an Offer for Sale (OFS) of shares aggregating up to Rs 50 crore by promoters, Sandeep Kumar, Sunil Jallan and Krishan Kumar Jalan, according to a Draft Red Herring Prospectus (DRHP) filed on December 30.
The promoters of A-One Steels India hold 85.56 per cent equity stake in the company, while public shareholders hold a 14.14 per cent stake.
The company proposes to use the net proceeds, from the fresh issue towards investment in its subsidiary, Vanya Steels Pvt Ltd, for purchase of equipment /machinery, expansion of manufacturing facility, and investment in Group captive power for procurement of solar energy. Funds will also be used by A-One Steels to repay debt and general corporate purposes.
A-One Steels India, a backward integrated steel manufacturer based in Bengaluru, southern India, has a diversified product portfolio in both long and flat steel products and industrial products used in steel manufacturing. It has six manufacturing facilities out of which five are located in Karnataka and one in Andhra Pradesh.
The company claims to be one of the top five steel producers in southern India in terms of crude steel capacity and the only company manufacturing 10 steel products and industrial products.
The company had a total installed capacity of 14.97 lakh metric tonnes per annum (MTPA) of steel (intermediate and finished) products as of June 30, 2024.
The company operates in a competitive landscape with listed companies like MSP Steel and Power Ltd, Jai Balaji Industries and Shyam Metalics and Energy Ltd.
PL Capital Markets Pvt Ltd and Khambatta Securities are the book-running lead managers while Bigshare Services is the registrar to the issue. The shares of the company are proposed to be listed on the BSE and the National Stock Exchange (NSE).
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