The integrated steel manufacturer A-One Steels India has submitted preliminary documents to SEBI, the capital markets regulator, in order to raise Rs 650 crore through an IPO.
A Draft Red Herring Prospectus (DRHP) filed on December 30 states that the promoters, Sandeep Kumar, Sunil Jallan, and Krishan Kumar Jalan, are offering an Offer for Sale (OFS) of shares totaling up to Rs 50 crore and a new issue of equity shares worth up to Rs 600 crore as part of the Initial Public Offer (IPO).
Share holding pattern
A-One Steels India’s promoters held 85.56 per cent of the company’s equity, with public shareholders owning the remaining 14.14 per cent.
Use of IPO proceedings
The company plans to use the net proceeds from the new issue to expand its manufacturing facility, buy equipment and machinery for its subsidiary Vanya Steels Pvt Ltd, and invest in Group captive power to buy solar energy.
A-One Steels will also use the money for general business needs and debt repayment.
Company’s manufacturing capacity
The company’s installed capacity for intermediate and finished steel products as of June 30, 2024, was 14.97 lakh metric tonnes per annum (MTPA).
The company faces competition from publicly traded companies like Shyam Metalics and Energy Ltd., Jai Balaji Industries, and MSP Steel and Power Ltd.
It is suggested that the company’s shares be listed on both the National Stock Exchange (NSE) and the BSE.
About company
Based in Bengaluru In southern India, A-One Steels India is a backward integrated steel manufacturer with a varied product line that includes industrial items used in the production of steel as well as long and flat steel products. Five of its six manufacturing sites are in Karnataka, and one is in Andhra Pradesh.
