Shri Bajrang Power and Ispat has received SEBI’s nod to raise funds worth Rs. 700 crores via an initial public offering. As per its DRHP filed with the capital market regulator, this public issue will comprise a fresh equity shares issue only.
For individuals who are interested in applying for this forthcoming initial share sale, it is vital to remember some key information. Let’s check them out.
Keep These Vital IPO Details in Mind
Here are some essential details regarding the initial public offering of Shri Bajrang Power and Ispat:
|Type of issue||Book-build issue|
|Market lot||Not yet announced|
|Price band||Not yet announced|
|Size of the issue||Rs. 700 crores|
|Face value per equity share||Rs. 10|
|Listing on||BSE and NSE|
|IPO opens on||Not yet announced|
|IPO closes on||Not yet announced|
Goals of Shri Bajrang Power IPO
Shri Bajrang Power and Ispat aims to achieve these objectives by utilising the net proceeds from its public issue:
- Prepayment/repayment of outstanding borrowings
- Ensuring the fulfilment of general corporate purposes
- Raising sufficient funds to fulfil the working capital needs
The table below represents what portion of the public issue will be reserved for each investor segment:
|Category of Investor||Allocation Percentage|
|Qualified Institutional Buyers (QIBs)||50%|
|Retail Individual Investors (RII)||35%|
|Non institutional investors (NII)||15%|
Before individuals place the IPO order, they must make sure to be aware of some crucial aspects regarding the company. These include competitive advantages, its financials, and more. Let’s dive in.
Here’s What Makes the Shri Bajrang IPO Attractive
Here are some key strengths of Shri Bajrang Power and Ispat:
- Based in Central India, this company is one of the leading integrated steel producers in the country.
- Shri Bajrang and Ispat has a proven track record in terms of financial performance.
- The company has highly experienced promoters and an efficient management team.
- It has established a strong foothold in the central and western parts of India. It also has a robust distribution network.
- The facilities of this company are located strategically and have a robust infrastructure. These ensure operational efficiency, high product quality and cost minimisation.
- Besides having a multi-faceted product portfolio, Shri Bajrang Power has reputed brands under its umbrella. These include Goel TMT WireX and Goel TMT.
- The company has managed to build long-standing relationships with channel partners.
Now let’s take a look at some of the essential figures that provide an insight into the financial position of SBPIL:
|As of||Overall Assets (in million)||Overall Revenue (in million)||Profit after Tax (in million)|
|31 March 2019||Rs. 22,759.91||Rs. 26,996.19||Rs. 2,374.70|
|31 March 2020||Rs. 25,013.65||Rs. 26,788.21||Rs. 1,410.53|
|31 March 2021||Rs. 28,391.28||Rs. 30,643.32||Rs. 2,989.33|
Investors should take into account that Shri Bajrang’s financials have been improving despite the economic downturn. Considering the competitive strengths of this company, the outlook seems to be positive for this company. Accordingly, new investors may open a DEMAT account with Angel One to apply for this upcoming public issue. That said, existing investors can subscribe to the IPO by logging in to their trading account.
However, make sure to consider other vital aspects regarding the company, such as weaknesses, threats, opportunities, etc., before placing the order.
Frequently Asked Questions
- Which entities have been appointed as the book running lead managers for Shri Bajrang and Ispat IPO?
SBI Capital Markets Limited and Equirus Capital Private Limited have been appointed as book-running lead managers for this forthcoming public issue.
- Who is the registrar to the public issue of Shri Bajrang and Ispat?
Link Intime India Private Limited is the registrar for the initial public offering.
- Which companies are some of the listed peers of Shri Bajrang and Ispat?
Jindal Steel & Power Limited, Sarda Energy & Mineral Limited and Tata Sponge Iron Limited are some of the listed peers of Shri Bajrang Power and Ispat.