Shree Bajrang Ispat Plans IPO to Turn Debt Free
Business Line reported that Raipur based mid-size integrated steel plant Shri Bajrang Power and Ispat plans to raise INR 700 crore through an initial public offer to become debt-free and use funds for working capital. The company will repay the entire term loan of INR 400 crore; a loan of INR 180 crore will remain on its subsidiary company.
Bajrang Power and Ispat operate three manufacturing units at Raipur. The company has 1.76 million tonnes per annum capacity to produce TMT bars, ERW pipes and HB wires. It owns iron-ore beneficiation and palletisation units with 2 million tonnes per annum and 1.4 million tonnes per annum, respectively. Shri Bajrang has an iron ore, allotted by the government. The company operates a captive power plant of 83 MW at its units including 50 MW from waste heat recovery and hydro-power capacity of 36 MW in Himachal Pradesh.
The company has approached the Chhattisgarh government to set up a steel plant with an investment of INR 1,465 crore and a 50 MW solar project at INR 175 crore investments. This apart, it is in the process of expanding sponge iron, steel melting, rolling mill, ferroalloys, captive power capacity, and setting up a galvanising plant with INR 145 crore and the projected is expected to be completed by end of this fiscal