Bangalore-based A-One Steels India is planning to raise Rs 650 crore through initial public offering (IPO) for facility expansion and debt reduction. It has filed preliminary papers with the capital markets regulator SEBI.
As per the DRHP filed on December 30, the IPO will consist of fresh issuance of shares worth Rs 600 crore, and an offer-for-sale of Rs 50 crore worth shares by promoters who held 85.56 percent shareholding in the company. Public shareholders own 14.14 percent stake.
A-One Steels, with six manufacturing facilities Karnataka and Andhra Pradesh, is a backward integrated steel manufacturer in southern India with a diversified portfolio of long and flat steel, and industrial products used in steel manufacturing. As of June 2024, it had a total installed capacity of 14.97 lakh metric tons per annum (MTPA) of steel (intermediate and finished) products.
The company competes with listed entities like MSP Steel and Power, Jai Balaji Industries, and Shyam Metallics and Energy.
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The steel manufacturer intends to spend Rs 344.4 crore out of the fresh issue proceeds for expansion of manufacturing facility and Rs 40 crore for group captive power plant. Further, Rs 100 crore will be used for repaying debt out of its total outstanding borrowings of Rs 1,396.2 crore till September 2024.
PL Capital Markets, and Khambatta Securities are appointed as the merchant bankers for the issue.
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