A-One Steels India Files DRHP for ?650 Crore IPO

A-One Steels India, a Bangalore-based backward integrated steel manufacturer in southern India, is planning to raise Rs 650 crore through an initial public offering (IPO). The company filed DRHP with the Securities and Exchange Board of India (SEBI) on December 30, 2024.?

IPO Details

The IPO includes a fresh issuance of shares worth Rs 600 crore and an offer-for-sale of Rs 50 crore worth of shares by promoters. The promoters currently hold an 85.56 percent shareholding in the company, while public shareholders own a 14.14 percent stake.

PL Capital Markets and Khambatta Securities are the merchant bankers appointed for the IPO.

IPO Proceeds Utilization

The company plans to use the IPO proceeds for several purposes, including:

• Expansion of manufacturing facilities: Rs 344.4 crore will be allocated for expanding manufacturing facilities.
• Group captive power plant: Rs 40 crore will be invested in a group captive power plant to improve energy efficiency and reduce operational costs.
• Debt repayment: Rs 100 crore will be used to repay debt. As of September 2024, the company had a total outstanding borrowings of Rs 1,396.2 crore.

A-One Steels India: A Backward Integrated Steel Manufacturer

A-One Steels is a backward integrated steel manufacturer in southern India. The company has six manufacturing facilities in Karnataka and Andhra Pradesh. A-One Steels offers a diverse portfolio of long and flat steel, as well as industrial products used in steel manufacturing. As of June 2024, the company had a total installed capacity of 14.97 lakh metric tons per annum (MTPA) of steel products.

Competition

A-One Steels competes with listed entities such as MSP Steel and Power, Jai Balaji Industries, and Shyam Metallics and Energy.