The proceeds from the issue will be used to repay debt worth ₹400 crore of the company. As of March 2021, total debt of the company stood at ₹1268.23 crore.

The firm will use ₹120 crore for funding working capital requirements. As of March 2021, its total sanctioned limit of working capital facilities of ₹555 crore, including fund-based and non-fund based limits and the aggregate amounts sanctioned under the fund based and non-fund based working capital facilities are ₹325 crore and Rs230 crore, respectively

Equirus Capital Pvt Ltd and SBI Capital Markets Ltd are the lead managers to the issue.

For fiscal year 2021, Bajrang Power reported a revenue of ₹3031.21 crore versus ₹2663.71 crore a year ago. Net profit for the period stood at ₹298.93 crore against ₹141.05 crore last year.

Shri Bajrang Power and Ispat is one of the leading integrated steel companies based in central India and is one of the top 10 players in India in terms of capacity for iron ore pellets, iron ore beneficiation and sponge iron.

The firm utilizes its captive iron mine with an approval to mine 1.2 MTPA and manganese ore mines to manufacture intermediate and long steel products, such as, TMT bars, ERW pipes manufactured through tubular section mill, wire rods, HB wires including binding wires, ferro alloys, steel billets, iron pellets and sponge iron.

The firm operates three manufacturing units in Raipur, Chhattisgarh which has abundant reserves of iron ore, iron ore fines and coal mines, its primary raw material sources. The firm is also in the process of expanding its capacity for sponge iron, steel melting, rolling mill, ferro alloys, captive power and setting up a galvanising plant, which is expected to be completed within Fiscal 2022. Further, it intends to set up a 50MW solar power plant at Raipur