A-One Steels India files draft papers with Sebi; eyes Rs 650-crore IPO

A-One Steels India, an integrated steel manufacturer, has filed preliminary papers with capital markets regulator Sebi to raise Rs 650 crore through an initial public offering.

The Initial Public Offer (IPO) 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, according to a Draft Red Herring Prospectus (DRHP) filed on December 30.

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 company proposes to utilise the net proceeds, from the fresh issue towards investment in its subsidiary, Vanya Steels Pvt Ltd, for purchase of equipment /machinery, expansion of manufacturing facility, and investment in Group captive power for procurement of solar energy.

Funds will also be used by A-One Steels to repay debt and general corporate purposes.

Bengaluru-based A-One Steels India is a backward integrated steel manufacturer in southern India with a diversified product portfolio in both long and flat steel products and industrial products used in steel manufacturing. It has six manufacturing facilities of which five are located in Karnataka and one in Andhra Pradesh.

The company claims to be one of the top five steel producers in southern India in terms of crude steel capacity, and the only company manufacturing 10 steel products and industrial products.

As of June 30, 2024, the company had a total installed capacity of 14.97 lakh metric tonnes per annum (MTPA) of steel (intermediate and finished) products.

The firm competes with listed entities such as MSP Steel and Power Ltd, Jai Balaji Industries and Shyam Metalics and Energy Ltd.

PL Capital Markets Pvt Ltd and Khambatta Securities are the book-running lead managers while Bigshare Services is the registrar to the issue.

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