Integrated steel manufacturer B.S. Sponge files for Rs 1,000 crore IPO

Raigarh based B.S. Sponge, an integrated steel manufacturer with operations spanning the steel value chain from sponge iron to value-added finished steel products, has filed its Draft Red Herring Prospectus (DRHP) for its proposed initial public offering (IPO).

The proposed IPO comprises a fresh issue aggregating up to ₹800 crore and an offer for sale (OFS) aggregating up to ₹200 crore, taking the total offer size to up to ₹1,000 crore. The OFS comprises shares offered by promoter selling shareholders Parmanand Agarwal and Ashish Agarwal and promoter group selling shareholder Sulochana Agarwal.

The company proposes to utilise ₹650 crore from the Fresh Issue primarily towards the repayment or pre-payment of all or certain outstanding borrowings, including accrued interest, with the balance proceeds to be utilised towards general corporate purposes.

Led by Parmanand Agarwal and Ashish Agarwal, who collectively bring experience across steel, power, mining and civil construction sector. B.S. Sponge commenced its manufacturing operations in 2005 with one sponge iron rotary kiln having an installed capacity of 30,000 TPA.

As of March 31, 2026, its installed manufacturing capacity for sponge iron stood at 675,000 TPA, while its aggregate installed manufacturing capacity across its portfolio of semi-finished and value-added finished steel products was 1,627,500 TPA.

Its product portfolio includes both semi-finished and value added finished steel products sponge iron, billets and slabs, TMT Bars, wire rods, HR Coils, ERW Pipes and Tubes, and Ferro Alloys, which collectively cater to a wide range of end-use industries including steel manufacturing, construction and infrastructure, residential and commercial development, agriculture, industrial and engineering applications, and for manufacturing of wires, cables, fasteners, nails, fencing products, springs, welding electrodes and other downstream steel products and are distributed across 20 states and 3 union territories

Growth plans for the company include a brownfield expansion at its manufacturing facility for sponge iron, ferro alloy, billets and slabs capacities and greenfield expansion where it plans to commission another facility in Raigarh at Nawapara. It plans to increase its focus on contribution from our value-added finished steel products

Financially, the company reported revenue from operations of ₹2,592.52 crore in FY26 compared to ₹2,187.82 crore in FY25. Operating EBITDA stood at ₹373.01 crore in FY26 compared to ₹336.59 crore in FY25, while profit for the year stood at ₹171.11 crore in FY26 and ₹158.43 crore in FY25. Operating EBITDA margin was 14.39% in FY26 compared to 15.38% in FY25, while PAT margin stood at 6.60% in FY26 compared to 7.24% in FY25.

Industry tailwinds remain supportive. According to the CRISIL Report cited in the DRHP, India has strengthened its position as the world’s second-largest steel-consuming nation, with finished steel demand estimated at 159.8 million tonnes in 2025, accounting for approximately 9.3% of global steel demand of 1,718.2 million tonnes. Although China continues to dominate global steel consumption with demand of 796.0 million tonnes, equivalent to nearly 46% of global demand, India’s share has been steadily rising on the back of robust economic growth, accelerated infrastructure development and increasing industrial activity.

Among major steel-consuming countries, India remains the fastest-growing large market. The country’s steel demand significantly exceeds that of developed economies such as the United States (90.9 million tonnes), Japan (48.0 million tonnes) and Germany (29.2 million tonnes). Rising investments in transport infrastructure, housing, renewable energy, commercial real estate and manufacturing are supporting growing steel intensity across the Indian economy.

Raigarh is a major industrial hub surrounded by major mineral-rich industrial states including Odisha and Jharkhand. It has a well-developed industrial ecosystem with the presence of numerous steel, power and allied manufacturing industries

The equity shares are proposed to be listed on BSE Limited and National Stock Exchange of India Limited.

ICICI Securities Limited and Motilal Oswal Investment Advisors Limited are acting as the book-running lead managers to the issue.