B.S. Sponge IPO

B.S. Sponge Limited's Initial Public Offering is a book building issue of ₹1,000.00 crores, consisting of a fresh issue of shares worth ₹800.00 crores and an offer for sale of ₹200.00 crores.

The equity shares are proposed to be listed on the NSE and BSE. ICICI Securities Limited is the book-running lead manager, and MUFG Intime India Private Limited is the registrar of the issue. Key details, such as the Initial Public Offering dates, price band, and lot size, are yet to be announced.

About B.S. Sponge Limited

B.S. Sponge Limited is an integrated steel manufacturer engaged in the production of semi-finished and value-added finished steel products. Its manufacturing operations span multiple stages of the steel value chain, beginning with the conversion of iron ore into sponge iron and extending to the production of billets and slabs, TMT bars, hot-rolled coils, wire rods, electric resistance welded pipes and tubes, and ferro alloys, primarily silico manganese.

The company commenced manufacturing operations in 2005 with a single sponge iron rotary kiln having an installed capacity of 30,000 tonnes per annum. Over the years, it expanded its operations through capacity additions and forward integration initiatives. As of March 31, 2026, its sponge iron manufacturing capacity stood at 675,000 tonnes per annum, while its aggregate installed capacity across semi-finished and value-added finished steel products stood at 1,627,500 tonnes per annum.

The company's product portfolio caters to multiple end-use industries, including steel manufacturing, construction and infrastructure, residential and commercial development, agriculture, and industrial and engineering applications. Its products are also used in the manufacturing of wires, cables, fasteners, nails, fencing products, springs, welding electrodes, and other downstream steel products. The company supplies products for captive consumption in its downstream manufacturing operations and sells them in the open market through direct institutional sales and a network of traders, distributors, and dealers.

During Fiscal 2026, sponge iron remained the company's largest revenue-generating product, contributing ₹10,765.34 million, or 41.52% of revenue from operations. Hot-rolled coils contributed ₹4,460 million, or approximately 17.20%, followed by TMT bars at ₹3,219.04 million, or 12.42%. Billets and slabs contributed ₹2,333.62 million, or 9%, while ferro alloys accounted for ₹2,357 million, or approximately 9.09%. Electric resistance welded pipes and tubes contributed ₹1,821 million, or 7%, and wire rods contributed ₹517 million, or 2%.

The company serves a diversified customer base comprising third-party steel manufacturers, re-rollers, pipe manufacturers, fabricators, traders, dealers, and other industrial customers. During Fiscal 2026, it served more than 1,000 customers across India, with no single customer contributing more than 4.12% of revenue from operations. Its products were distributed across multiple geographical markets, with Central India contributing approximately 75% of revenue in Fiscal 2026, followed by Western India at 12%, Southern India at 6%, Northern India at 5%, and Eastern India at 2%. Chhattisgarh was its largest individual market, contributing approximately 56% of revenue.

The company's manufacturing facility holds certifications under internationally recognized management system standards, including ISO 9001:2015 for its Quality Management System, ISO 14001:2015 for its Environmental Management System, and ISO 45001:2018 for its Occupational Health and Safety Management System. Its products are manufactured in accordance with applicable standards prescribed by the Bureau of Indian Standards and quality requirements specified by customers. The company is also a registered member of the Chhattisgarh Sponge Iron Manufacturers Association and the India Ferro Alloy Producers' Association.

The company has received recognition for its corporate social responsibility initiatives and workplace practices. In 2025, it received the CSR Project of the Year – Large Impact award at the 16th India CSR Awards. In 2026, it received a certificate of honour for its Arogya Sewa Programme in an Aspirational Region at the 17th India CSR Awards. It was also recognized as a Great Place to Work by Great Place to Work India in 2026.

Industry Outlook

• India is the world’s second-largest steel producer and one of the fastest-growing major steel-producing nations. Its crude steel production increased from 100.3 million tonnes per annum in calendar year 2020 to 164.9 million tonnes per annum in calendar year 2025, registering a compound annual growth rate of 10.5%.
• The Indian steel industry’s growth is supported by infrastructure development, urbanization, industrialization, rising per capita income, and increasing investments in housing, roads, railways, transportation, and manufacturing. Government initiatives such as the National Steel Policy, Make in India, Production Linked Incentive Scheme for Specialty Steel, and PM Gati Shakti are also expected to support domestic steel consumption and capacity expansion.
• Sponge iron is a key raw material used in steel production through induction furnaces and electric arc furnaces. Domestic demand increased from 33.85 million tonnes in FY21 to 59.86 million tonnes in FY26, registering a compound annual growth rate of approximately 12.08%. Demand is projected to reach 82–87 million tonnes by FY30, growing at an estimated 8–9% compound annual growth rate.
• Sponge iron remains an important feedstock for India's secondary steel producers, particularly those using electric arc furnaces and induction furnaces. Limited domestic scrap availability, dependence on imported scrap, and volatility in international scrap prices support the use of sponge iron as a reliable and cost-competitive alternative. Increasing demand for long steel products from infrastructure, construction, and manufacturing is also expected to support its consumption.
• Demand for thermo-mechanically treated bars increased from 26.7 million tonnes in FY21 to an estimated 54 million tonnes in FY26, registering a compound annual growth rate of approximately 15.1%. Demand is projected to reach 69.6 million tonnes by FY30, growing at 6–7%. Residential and commercial construction, infrastructure projects, roads, railways, metro networks, and industrial development are the key demand drivers.
• Demand for hot-rolled coils and strips increased from 37.7 million tonnes in FY21 to an estimated 59.9 million tonnes in FY26, registering a compound annual growth rate of approximately 9.7%. It is projected to reach 78.1 million tonnes by FY30, growing at 6–7%. Demand is supported by applications in pipes and tubes, automotive components, engineering goods, capital equipment, and fabricated steel structures.
• India's finished steel trade has experienced fluctuations in imports and exports due to changes in domestic demand, global prices, and production capacity. Finished steel imports increased to 9.6 million tonnes in FY25, exceeding exports of 4.9 million tonnes. For FY26, imports and exports were provisionally estimated at 6.5 million tonnes and 6.6 million tonnes, respectively. The industry also faces competition from domestic and international manufacturers, along with volatility in steel prices and raw material costs.

B.S. Sponge IPO Objectives

The company proposes to utilize the net proceeds from the issue towards the following objectives:

• Repayment/pre-payment, in full or in part, of all or certain outstanding borrowings and accrued interest thereon availed by the company.
• Towards general corporate purposes.

Financial Performance of B.S. Sponge Limited

B.S. Sponge Limited Peer Details Comparison