A-One Steels India files for ₹650 Crore IPO to Boost Expansion and Sustainability Efforts

A-One Steels India, an integrated steel manufacturer, has filed preliminary papers with capital markets regulator SEBI to raise ₹650 crore through an initial public offering.

The Initial Public Offer (IPO) comprises a fresh issue of equity shares worth up to ₹600 crore and an Offer for Sale (OFS) of shares aggregating up to ₹50 crore by promoters, Sandeep Kumar, Sunil Jallan and Krishan Kumar Jalan, according to a Draft Red Herring Prospectus (DRHP) filed on December 30.

The promoters of A-One Steels India owned 85.56% equity stake in the company while public shareholders hold a 14.14% stake.

The company proposes to utilise the net proceeds, from the fresh issue towards investment in its subsidiary, Vanya Steels Pvt Ltd, for purchase of equipment /machinery, expansion of manufacturing facility, and investment in Group captive power for procurement of solar energy.

Funds will also be used by A-One Steels to repay debt and general corporate purposes.

Bengaluru-based A-One Steels India is a backward integrated steel manufacturer in southern India with a diversified product portfolio in both long and flat steel products and industrial products used in steel manufacturing. It has six manufacturing facilities of which five are located in Karnataka and one in Andhra Pradesh.

The company claims to be one of the top five steel producers in southern India in terms of crude steel capacity, and the only company manufacturing 10 steel products and industrial products.

As of June 30, 2024, the company had a total installed capacity of 14.97 lakh metric tonnes per annum (MTPA) of steel (intermediate and finished) products.

The firm competes with listed entities such as MSP Steel and Power Ltd, Jai Balaji Industries and Shyam Metalics and Energy Ltd.

The shares of the company are proposed to be listed on the BSE and the National Stock Exchange (NSE).

About A-One Steels India

Founded in 2009, A-One Steel Group has become a leading steel producer in South India. Driven by its vision of contributing to national development, the company delivers world-class products. With strategic planning, innovation, and advanced technology, A-One Steel focuses on operational excellence and sustainability.