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.
Table of Contents
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
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |||
| Total Assets | 2,839.13 | 2,501.37 | 2,275.99 | ||
| Total Revenue | 3,064.33 | 2,678.82 | 2,699.62 | ||
| Profit After Tax | 298.93 | 141.05 | 237.47 | ||
Basic and Diluted Earnings Per Share (EPS)
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | 57.30 | 57.30 | 3 |
| Financial Year 2020 | 26.87 | 26.87 | 2 |
| Financial Year 2019 | 45.39 | 45.39 | 1 |
| Weighted Average | 45.17 | 45.17 |
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
| S. No. | Company Name | PE |
| 1 | JSW Steel Limited | 20.71 |
| 2 | Tata Steel Limited | 19.43 |
| 3 | Jindal Steel & Power Limited | 11.07 |
| 4 | Prakash Industries Limited | 14.77 |
| 5 | Godawari Power & Ispat Limited | 8.03 |
| 6 | Sarda Energy & Mineral Limited | 6.31 |
| 7 | Kamadhenu Limited | 28.83 |
| 8 | Tata Steel Long Products Ltd. | 7.91 |
| 9 | Shyam Metalics and Energy Limited | 11.60 |
Shri Bajrang Power IPO Details
| IPO Opening Date | September 2021 |
| IPO Closing Date | September 2021 |
| Issue Type | Book Built |
| Face Value | 10 per share |
| IPO Price | 0 per equity share |
| Market Lot | 0 |
| Min Order Quantity | 0 |
| Listing At | BSE, NSE |
| Issue Size | 700 Cr. |
| Fresh Issue | – Cr. |
| Offer for Sale | – Cr. |
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.
| IPO Open Date | September 2021 |
| IPO Close Date | September 2021 |
| Basis of Allotment Date | September 2021 |
| Initiation of Refunds | September 2021 |
| Credit of Shares to Demat Account | September 2021 |
| IPO Listing Date | September 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 35 | Minimum level of 1 lot, based on availability, for every shareholder. |
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.
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
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| September 2021 | |||
| September 2021 | |||
| September 2021 | |||
| September 2021 |
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
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| September 2021 | 1 | |||||
| September 2021 | 2 | |||||
| September 2021 | 3 |
Promoters
- Suresh Goel
- Rajendra Goel
- Narendra Goel
- Anand Goel
- Atlanta Securities Private Limited
- Banka Finance & Securities Private Limited.
Promoter’s Holding
| Pre Issue Share Holding | 34.84% |
| Post Issue Share Holding |
Shri Bajrang Power IPO Prospectus
Contact Details
Shri Bajrang Power and Ispat Limited
Village Borjhara, Guma Road, Urla Growth Centre,
Raipur – 493 221, Chhattisgarh, India
Tel.: +91 771 4288019
E-mail : [email protected]
Website: www.sbpil.co.in
Registrar
Link Intime India Private Ltd
Link Intime India Private Ltd
C 101, 247 Park, L.B.S.Marg,
Vikhroli (West), Mumbai – 400083
Phone: +91-22-4918 6270
Email: [email protected]
Website: http://www.linkintime.co.in
Lead Manager(s)
- SBI Capital Markets Limited
- Equirus Capital Private Limited
We hope we are able to answer all your questions about Shri Bajrang Power IPO. If you don’t have a Demat account, open it now with Zerodha best trading app.
Clarification
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms.
What is Grey Market?
The phrase “grey market” refers to an illegal over-the-counter market where IPO applications and IPO stock are traded before the entity is listed on a stock exchange. This is a technique for dealers to help consumers who wish to sell their home before it goes on the market.
This is also a way to increase the listing fee and provide help for the issue prior to the listing. In the IPO grey market, there are two types of transactions that take place:
- IPO stocks are traded at a premium in the grey market.
- At a kostak, an IPO application is traded.
What is grey Market Premium?
The Grey Market Premium, or GMP, is the price at which IPO stock shares are exchanged in the grey market.
This could be correct or incorrect, implying that the grey market trading price is greater or cheaper than the issue price, depending on demand and supply for the stocks.
Typically, individuals who do not want to incur the risk of their shares not being allocated through an IPO can purchase shares on the grey market in the hopes of flipping them on the IPO for a profit.
What is Kostak?
The additional amount in rupees at which IPO applications are sold in the IPO Grey Market is known as kostak (or price of application). The bonus of a maximum lot retail application in an IPO is generally described as the ‘Kostak’ value.
The Kostak price is significant primarily before the offer is closed for subscription and the ultimate bidding status is made accessible to IPO participants. After the final auction status is known to investors, only a small percentage of IPO applications are exchanged.
‘Kostak’ is made for those who do not want to incur a risk on an IPO or gain from a listing.
Example:
Shri Bajrang Power IPO
Issue Price: Rs 306 Per Equity Share (Maximum Bid price)
Lot Size: 45
Grey Market Premium: Rs 220 to Rs 230
Kostak (Rs 13770): Rs 680 to Rs 720
This means Shri Bajrang Power IPO applications of Rs 13770 are being traded in IPO Grey Market at Rs 680 to Rs 720.
Despite the fact that this IPO’s Grey Market Premium is roughly 75% of the issue price, the ‘Kostak’ is just 5% of the application value.
Kostak rate
The Kostak rate is the fee received by an investor who sells his or her IPO application on the grey market. Regardless of allotment status, this is the money an individual stands to gain.
Subject to Sauda
The money that an investor stands to gain by selling his or her application for firm allotment is referred to as the subject to Sauda. Firm allocation is the important operative phrase here. The sauda will be cancelled if the applicant is not allotted.
When selling an IPO application in the grey market, the client and seller agree that the sale will only be legal if the seller receives the allocation. The deal is avoided if the seller does not get any stocks throughout the IPO procedure.
FAQ
Shri Bajrang Power IPO Opening Date?
Shri Bajrang Power IPO will open in September 2021.
Shri Bajrang Power IPO Listing Date?
Shri Bajrang Power IPO will list in September 2021.
Shri Bajrang Power IPO GMP Today?
Shri Bajrang Power IPO Grey Market Premium is INR 0.
Shri Bajrang Power IPO Allotment Date?
Shri Bajrang Power IPO basis of allotment will be in September 2021.
Lot size for Shri Bajrang Power IPO?
Lot size for IPO is 0.
