Upcoming IPO! A-One Steels files draft papers with market regulator

The public offering comprises a fresh issue of equity shares worth up to Rs 600 crore, and an offer for sale (OFS) of shares aggregating up to Rs 50 crore by promoters

Backward integrated steel manufacturer A-One Steels India is planning to go public as the company has filed its draft papers with capital markets regulator Stock Exchange Board of India (SEBI) for its initial public offering (IPO) to raise Rs 650 crore. In its Draft Red Herring Prospectus (DRHP), the company said that its public offering comprises a fresh issue of equity shares worth up to Rs 600 crore, and an offer for sale (OFS) of shares aggregating up to Rs 50 crore by promoters, Sandeep Kumar, Sunil Jallan, and Krishan Kumar Jalan.

 

As per the DRHP, the promoters of A-One Steels India owned 85.56 per cent equity stake in the company, while public shareholders hold a 14.14 per cent stake.

 

The shares of the company are proposed to be listed on the BSE and the National Stock Exchange (NSE).

 

Bigshare Services is the registrar for the public offering, while PL Capital Markets and Khambatta Securities are the book-running lead managers.

 

"Our company will not receive any proceeds from the offer for sale. The selling shareholders will be entitled to the proceeds of the offer for sale, net of the offer-related expenses and the relevant taxes thereon," said A-One Steels India in its DRHP.

 

A-One Steels, however, proposes to utilise the net proceeds from the fresh issue towards funding the equity investment in the Indian subsidiary of the company, Vanya Steels, for the purchase of equipment/machineries and civil works for the expansion of the manufacturing facility and for investment in group captive power for procurement of solar energy. The company further intends to use the proceeds for pre-payment or partial repayment of certain outstanding borrowings availed by the company as well as for general corporate purposes.

 

A-One Steels India, based in Bengaluru, is a steel manufacturer with a presence in southern India. The company has a diversified product portfolio that includes long and flat steel products, as well as industrial products used in steel manufacturing.

 

A-One Steels operates six manufacturing facilities, with five located in Karnataka and one in Andhra Pradesh. As of June 30, 2024, the company's total installed capacity was 14.97 lakh metric tonnes per annum (MTPA) of steel products. A-One Steels competes with other steel producers, including MSP Steel and Power, Jai Balaji Industries, and Shyam Metalics and Energy.