Shri Bajrang Power and Ispat, the flagship company of the Goel Group of companies, has filed draft red herring prospectus with capital market regulator SEBI for initial public offering of Rs 500 crore.
The net issue proceeds will be utilised towards repayment of certain borrowings (Rs 375 crore); and for General corporate purposes.
In addition to its existing facilities the company plans to increase production capacities. The facilities above are expected to be fully commissioned during financial year 2020.
On completion of the above expansion plans, the companyâ€™s aggregate installed capacity is expected to increase from 3,60,000 TPA to 5,10,000 TPA, for sponge iron production; and from 2,35,200 MTPA to 2,64,000 MTPA, for Billets and Blooms.
The company is setting up of an additional sponge iron plant, of 1,50,000 TPA, at the Unit III Tilda facility. This would significantly enhance sponge iron output and doubling it from 1,50,000 TPA to 3,00,000 TPA.
Shri Bajrang Power and Ispat, is an integrated manufacturer of long steel products in India. Their current product portfolio comprises of TMT bars, wire rod, HB wires, sponge iron, pellets, steel billets, ferro alloys, and fly ash bricks. The Goel group is involved in, inter-alia, the manufacturing of steel, generation and sale of hydro-power, generation of captive power, and operating a regional television channel.