Sky Alloys and Power files DRHP for IPO with fresh issue and OFS component

Sky Alloys and Power has filed preliminary papers with the market regulator, the Securities and Exchange Board of India, to raise funds via an initial public offering.

The proposed initial share sale is a fresh issuance of 16,084,000 shares and an offer for sale (OFS) of 1,807,000 shares by promoters Ravi Singha and Nisha Singhal.

The net proceeds from the fresh issue will be used for debt repayment and general corporate purposes.

"Our company expects to receive the benefits of listing of the equity shares on the stock exchanges, including enhancing our visibility and our brand image among our existing and potential customers and creation of a public market for our equity shares in India," according to the draft red herring prospectus.

Gretex Corporate Services and Arihant Capital Markets are the issue's book-running lead managers, while MUFG Intime India is the registrar.

The company's shares will be listed on the NSE and the BSE.

Sky Alloys and Power is an integrated steel manufacturing firm with a product portfolio of MS billets, sponge iron, TMT bars, and ferro alloys.

Apart from manufacturing operations, the firm is also engaged in trading activities. The trading portfolio mainly comprises MS billets, sponge iron, and raw materials used in steel manufacturing.

The firm has established an integrated captive power infrastructure to back its manufacturing operations and improve energy efficiency. It operates waste heat recovery boiler (WHRB) and atmospheric fluidised bed combustion (AFBC) boiler-based captive power facilities, which support meeting its in-house power requirements. It also runs two captive power plants and a 9 MWp solar power plant.

Sky Alloys and Power financials