IPO Update: Steelmaker Shri Bajrang Power and Ispat files DRHP
Shri Bajrang Power and Ispat Limited plans to launch an IPO comprising of equity shares of face value Rs. 10 each, amounting to a total of Rs. 500 crore. The company filed a DRHP with SEBI on September 12, 2018. Proceeds from the IPO will be employed towards repayment/prepayment of the company’s borrowings of Rs. 375 crore and towards general corporate endeavours.
Shri Bajrang Power and Ispat is a flagship company of the Goel group of companies, and one of the leading producers of iron ore, steel and steel products in Central India. Steel, power and mining comprise the company's primary business verticals. The company has further broadened its horizons by venturing into manufacturing and service sector, thereby offering a diverse portfolio of products including TMT bars, wire rods, HB wires, sponge iron, pellets, steel billets, ferro alloys, fly ash bricks, and digital marketing and media.
Each of the promoters of the company namely Suresh Goel, Rajendra Goel, Narendra Goel and Anand Goel boast over 30 years of hands-on experience in the steel industry. The company aims to create innovative products that have a minimal detrimental impact on the environment.
The company has been allotted exclusive mining rights concerning an iron ore mine situated in Chhattisgarh. The company hopes to use this privilege to enhance backward integration, increase raw material security and augment profitability. Furthermore, they also secured exclusive mining rights pertaining to an open-cast manganese ore mine located in Andhra Pradesh, with an area of 3.95 Ha.
The Goel group is engaged in the generation and sale of hydro-power and captive power. They also operate a regional television channel.
For the year ended March 2018, the company reported total revenue of Rs. 18,644.28 million, posting an increase of 19.15 per cent in comparison to the revenue of Rs. 15,663.64 earned in 2017. As of March 31, 2018, the company reported a profit of Rs. 371.23 million, marking a growth of 30.94 per cent, as against profit of Rs. 283.51 million as of March 31, 2017.