BS Sponge files draft papers to raise ₹1,000 crore through IPO
Proposed IPO comprises a fresh issue of equity shares worth up to ₹800 crore and an OFS of shares worth up to ₹200 crore by promoters
Steel manufacturer BS Sponge Ltd has submitted draft registration papers to the securities regulator SEBI to finance a ₹1,000 crore Initial Public Offering (IPO). The IPO will consist of a primary share sale of up to ₹800 crore and a promoter-led Offer For Sale (OFS) of up to ₹200 crore, as per the Draft Red Herring Prospectus (DRHP) submitted on Wednesday.
BS Sponge intends to employ ₹650 crore of the fresh capital to settle or pre-pay certain existing debts and accrued interest. The remaining funds will be allocated for the company's general operations. BS Sponge is engaged in the production of steel and steel products, encompassing a spectrum of products from semi-finished goods like sponge iron and billets, to finished items such as TMT bars, HR Coils, wire rods, ERW pipes, and ferro alloys.
The company's manufacturing facilities are powered by a 67-MW on-site power plant. The issue is being underwritten by ICICI Securities and Motilal Oswal Investment Advisors. All comments on this matter should be in English, written in full sentences, and adhere to community guidelines.
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