Chhattisgarh-based structural steel products manufacturer Madhur Iron & Steel (India) has filed draft document with Securities and Exchange Board of India to raise funds for working capital, capital expenditure, and lowering debt burden.
The IPO comprises of fresh issue of 1 crore equity shares with no offer-for-sale component, as per the DRHP filed on January 23.
Incorporated in 2012, Madhur Iron manufactures and trades in structural steel products including angles, channels, mild steel (MS) sections, and flats & rods, operating under a business-to-business (B2B), order-based model, and supplying products to institutional customers.
Its products are used in several industries such as railway electrification, state electricity boards, power and energy infrastructure, telecom tower manufacturing, automotive and ancillary units, offshore structure fabrication, construction and real estate, and general engineering.
With manufacturing plant in Bhilai, Chhattisgarh, it has installed production capacity of 56,700 MT per annum for the rolling mill and 7,800 MT per annum for the fabrication unit.
Madhur Iron and Steel will spend Rs 11.9 crore for repayment of certain borrowings, Rs 75.8 crore for setting up proposed unit II and Rs 35.3 crore for working capital requirements, besides funds for general corporate purposes.
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As of January 20 this year, the company's total outstanding borrowing was Rs 114.2 crore.
The company has decided to expand manufacturing capacity for its structural steel products segment, hence, setting up a new manufacturing facility at proposed unit II at Bemetara, Chhattisgarh.
"By implementing proposed project, we intend to enable captive consumption of internally manufactured steel for the production of structural steel products, thereby increasing capacity utilization from 56,700 MT, to 1,76,700 MT," the company said.
Madhur Iron has reported healthy financial performance in the recent past years, with profit at Rs 9.8 crore on revenue of Rs 192.2 crore. Profit in the fiscal 2025 grew by 44.3 percent to Rs 18.1 crore, increasing from Rs 12.6 crore, and revenue in the same period increased by 42 percent to Rs 339.6 crore, up from Rs 239.3 crore.
Share India Capital Services is appointed as the merchant banker for the Madhur Iron & Steel IPO.
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