Shri Bajrang Power IPO

Shri Bajrang Power and Ispat Limited (“SBPIL”) has expanded to become one of India’s major integrated steel businesses, with ability for iron ore pellets, iron ore purification, and sponge iron among the top ten manufacturers. Shri Bajrang Power IPO will hit the market in September 2021.

About Shri Bajrang Power and Ispat Limited

They produce intermediate and long steel items like TMT Bars, ERW pipes manufactured via tubular section mill (“ERW Pipes”), wire rods, HB wires along with binding wires, ferro alloys, steel billets, iron pellets, and sponge iron using their captive iron mine with a permission to mine 1.2 MTPA and manganese ore mines.

They have a proven record of generating operational stability and they have been profitable in each of the fiscal years since 2005.

Manufacturing Facilities

They now operate 3 production facilities (the “Units”) in Raipur, the capital of the mineral-rich state of Chhattisgarh, which has large deposits of iron ore, iron ore fines, and coal mines, which function as their major raw material suppliers.

They claim that their Units’ strategic placement reduces logistic costs and improves logistics and productivity improvements.

The total produceable metal output of their Units was 1.76 million metric tonne per annum (“MTPA”) as of May 31, 2021. (comprising of intermediate and final products).

Power Plant

They also have internal power capacity of 83 MW at their Units as of May 31, 2021, comprising 50 MW from waste heat recovery, which enables them to convert waste heat from production into electricity generation, decreasing their carbon impact and power and fuel expenses at the same time.

Power units generated by their captive power plants contributed for 98.77 percent, 99.06 percent, and 93.90 percent of their total energy units used in fiscal years 2021, 2020, and 2019.

Confederation of Indian Industry awarded their firm the 12th Encon Awards in 2019 and the 10th Encon Awards in 2017 (Second Runner Up) in the wide-scale sector for energy saving.

Brands

Their TMT Bars, ERW Pipes, and HB wires are offered under the names “Goel TMT,” “Goel Pipes,” and “Wire,” correspondingly, and they have spent $714.28 million on promotion and advertising in the previous three fiscal years to further develop their brands in their particular sectors.

TMT Bars, ERW Pipes, and HB Wires sales have been their Company’s most important revenue stream, accounting for INR 13,675.98 million, INR 11,615.63 million, and INR 12,989.18 million in Fiscals 2021, 2020, and 2019, respectively.

They accounted for 45.12 percent, 43.61 percent, and 48.37 percent of their overall income from operations for the same duration.

Shri Bajrang Power IPO

Shri Bagrang Power, headquartered in Raipur has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 700 crore on 12 July,  2021.

They planned to collect INR 700 cr via its initial public offering (IPO). It will be mix of fresh issue & OFS of existing promoters Equity Shares mentioned in the drhp of the company.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Basic and Diluted Earnings Per Share (EPS)

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of The offer

Some of the qualitative parameters that go into determining Issue Price include:

• Located in central India, one among the largest integrated steel enterprises.
• Product mix is diverse, with a significant priority on value-added items and well-known brands.
• Market footprint and connections with channel associates are well-established, with a substantial distribution network to back them up.
• Units that are ideally situated and have a strong infrastructure assist to save costs.
• A track record of financial efficiency improvement
• A dedicated senior leadership team and professional promoters.

Shri Bajrang Power and Ispat IPO Peer Comparison

Shri Bajrang Power IPO Details

Shri Bajrang Power IPO Tentative Date

Shri Bajrang Power IPO opening date is September 2021, and the closing date September 2021. The issue may list in September 2021.

Basis of Allotment

Bajrang Power IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Shri Bajrang Power IPO.

Shri Bajrang Power IPO GMP

Shri Bajrang Power IPO Grey Market Premium is INR 0.

Shri Bajrang Power IPO Review

Shri Bajrang Power IPO Review will depend on Price band. Once the price band will be issued we will update the Review for this IPO.

Goel TMT IPO Risk

• Steel demand and pricing are variable, and they are affected by the cyclical nature of the sectors they support. A drop in steel prices might have a significant negative impact on their firm.
• Their activities demand a considerable amount of raw materials, and they may not be able to secure these resources at competitive costs or in a timely manner.
• Their capacity to acquire raw materials might be harmed if their mining activities are disrupted, and this could have a substantial negative effect on the business.
• They intend to expand, which would likely necessitate considerable financial investment and subject them to operational threats.

Other Threats

• Their company, subsidiaries, management, and promoters are the subject of ongoing legal actions. An unfavourable decision in such procedures might have a significant negative impact on their firm.
• In Fiscal 2016, their Company’s existing term loans were restructured in accordance with the RBI plan. Any inconsistency in cash flow might have a negative impact on their profitability.
• They have some contingent liabilities that have not been accounted for in their financial statements and might have a negative impact on their financial situation if they materialise.
• They have yet to receive approval from HDFC Bank Limited, one of their Company’s lenders, to proceed with the Issue.

Shri Bajrang Power IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Shri Bajrang Power IPO Subscription Status

Promoters

1. Suresh Goel
2. Rajendra Goel
3. Narendra Goel
4. Anand Goel
5. Atlanta Securities Private Limited
6. Banka Finance & Securities Private Limited.

Promoter’s Holding

Shri Bajrang Power IPO Prospectus