Avtar Steel files ₹585cr IPO, Sumit Jindal offers 50L shares
Avtar Steel, a stainless-steel maker from Delhi, is gearing up for an IPO with a fresh issue of shares worth ₹585 crore and has just filed the paperwork with the Securities and Exchange Board of India (SEBI).
The deal includes fresh shares plus promoter Sumit Jindal has proposed to sell up to 50 lakh shares through an offer for sale (OFS).
If all goes well, this could give the company a big boost for its next phase.
Avtar Steel to repay ₹200cr
Some of the funds might come from a pre-IPO placement (up to ₹117 crore), which would shrink the main IPO size.
The money raised will help set up a new specialty steel facility, ramp up wire production at their Sonipat plants, and pay off part of their loans, ₹200 crore out of ₹339.3 crore in borrowings.
The rest is earmarked for general corporate purposes.
Avtar Steel plans BSE NSE listing
Shares are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), with Systematix Corporate Services and Elara Capital managing the IPO process.
Avtar Steel hopes this move will strengthen its balance sheet and fuel future growth.