Yogiji Digi Files for IPO With ₹270 Crore Fresh Issue and Offer for Sale

Yogiji Digi Limited, a provider of flat steel processing solutions, has filed draft papers with the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO). The proposed IPO consists of a fresh issue of equity shares worth ₹270 crore and an Offer for Sale (OFS) of up to 71.71 lakh equity shares by promoters and existing investors.

The company may also undertake a pre-IPO placement of up to ₹39 crore before the public issue. If completed, the amount raised through the pre-IPO placement will be reduced from the fresh issue size.

Yogiji Digi IPO Details and Fundraising Plan

According to the Draft Red Herring Prospectus (DRHP), the IPO comprises 2 components, including a fresh issue and an OFS by existing shareholders. The OFS includes stake sales by promoters Navneet Singh, Sameer Bansal and Satish Kumar Tripathi, along with promoter group entities and investor shareholders.

The Faridabad-based company has also kept the option open for a pre-IPO placement of up to ₹39 crore. Such a placement, if executed, would lead to a corresponding reduction in the size of the fresh issue.

How Yogiji Digi Plans to Use IPO Proceeds

The company intends to utilise the proceeds from the fresh issue for multiple business requirements. A portion of the funds will be used to meet working capital needs, which are important for supporting ongoing operations and project execution.

The company also plans to prepay or repay certain outstanding borrowings to strengthen its balance sheet. The remaining proceeds will be allocated towards general corporate purposes.

Yogiji Digi Business and Product Portfolio

Yogiji Digi operates in the flat steel processing solutions segment and provides equipment and technology solutions across various stages of steel processing. Its product portfolio includes cold rolling mills, annealing and pickling lines, acid regeneration plants, metal coating lines and colour coating lines.

The company also offers skin pass mills, ancillary lines, spare parts and components, revamps and retrofitting services, as well as electrical and automation solutions. These offerings cater to steel manufacturers seeking processing and production infrastructure solutions.

India Flat Steel Demand Growth Supports Industry Outlook

A CRISIL report cited in the draft papers highlighted strong growth in India's flat steel industry over recent years. Domestic flat steel demand increased at a CAGR of 7.88% between FY20 and FY26, rising from 4.85 crore tonnes to 7.65 crore tonnes, supported by demand from the automotive, construction and infrastructure sectors.

During the same period, flat steel production grew at a CAGR of 6.97%, increasing from 4.99 crore tonnes to 7.47 crore tonnes. The report projects production to grow at a CAGR of 6.5%-7.5% between FY26 and FY31, reaching 10-10.5 crore tonnes annually by FY31.

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Conclusion

Yogiji Digi's proposed IPO marks another addition to India's primary market pipeline, with the company seeking fresh capital to support operations and reduce debt. The offer includes a ₹270 crore fresh issue and an OFS of up to 71.71 lakh equity shares by promoters and investors.

The company's business is linked to the flat steel processing industry, which has recorded steady growth in demand and production over recent years. Emkay Global Financial Services and Systematix Corporate Services are the book-running lead managers for the issue, while Bigshare Services has been appointed as the registrar.

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