Avtar Steel has filed preliminary papers with capital markets regulator Securities and Exchange Board of India (SEBI) to raise Rs 585 crore through an Initial Public Offering (IPO). Along with the fresh issue, the IPO would comprise an offer for sale (OFS) of 50 lakh shares by promoter Sumit Jindal.
The proceeds from the fresh issue will primarily be used to part-finance capital expenditure for setting up a Specialty Steel Melting Division for manufacturing special steel, including alloy steel, carbon steel and valve steel, as well as stainless-steel blocks and blooms. The company also plans to expand stainless-steel wire manufacturing at its existing Wire Rod and Bar Division. Part of the proceeds will also be utilised for debt payment and for general corporate purposes. Systematix Corporate Services and Elara Capital (India) are the book-running lead managers to the issue.
Avtar Steel has a diversified portfolio of stainless-steel long and wire products catering to sectors such as automobile, oil and gas, defence, aerospace, water solutions, energy, shipping, fabrication and construction, and chemical, food and dairy industries.
