Upcoming IPO: Yogiji Digi files DRHP with SEBI to garner funds via public issue

Yogiji Digi Ltd, an indigenous flat steel processing solutions provider, has filed preliminary papers with capital markets regulator SEBI to raise funds through an initial public offering (IPO).

The IPO comprises a fresh issue of equity shares worth ₹270 crore and an Offer-for-Sale (OFS) of up to 71.71 lakh equity shares by promoters and existing shareholders, according to its Draft Red Herring Prospectus (DRHP).

Proceeds from the fresh issue will be used to meet the company's working capital requirements, prepay or repay certain outstanding borrowings, and for general corporate purposes.

The OFS includes stake sales by promoters Navneet Singh, Sameer Bansal and Satish Kumar Tripathi; promoter group entities Navneet Gill (HUF) and Samir Bansal HUF; and investors S Gupta Family Enterprises, Coinmen Special Opportunities Fund, Anubhav Gupta Investments and Anubhav Gupta Ventures.

The Faridabad-based company may also undertake a pre-IPO placement of up to ₹39 crore. If completed, the amount raised through the pre-IPO placement will be deducted from the size of the fresh issue.

The product portfolio of Yogiji Digi includes cold rolling mills, annealing and pickling lines, acid regeneration plants, metal coating lines, colour coating lines, skin pass mills, ancillary lines, spares and components, revamps and retrofitting, and electrical and automation solutions.

According to a CRISIL report cited in the draft papers, domestic flat steel demand in India grew at a compound annual growth rate (CAGR) of 7.88% between FY20 and FY26, rising from 4.85 crore tonnes to 7.65 crore tonnes, driven by robust demand from the automotive, construction and infrastructure sectors.

Flat steel production in the country increased at a CAGR of 6.97% during the same period, from 4.99 crore tonnes in FY20 to 7.47 crore tonnes in FY26. It is projected to grow at a CAGR of 6.5%-7.5% between FY26 and FY31, reaching 10-10.5 crore tonnes annually by FY31, the report added.

Emkay Global Financial Services and Systematix Corporate Services are the book-running lead managers to the issue, while Bigshare Services is the registrar.