Bedi Steels Files DRHP for BSE SME IPO; Plans Fresh Issue of 18.24 Lakh Shares

Mumbai, 18 Sep 2025 – Bedi Steels Limited (Proposed BSE SME) has submitted its Draft Red Herring Prospectus to raise funds through a fresh issue of a maximum of 18,24,000 equity shares. Ludhiana-based alloy steel manufacturer intends to use the majority of proceeds for working capital, and the rest for general corporate purposes.

Issue snapshot

The SME IPO will be traded on the BSE SME segment and will be a 100% book-built issue. The offering comprises a fresh issue of up to 18.24 lakh equity shares of face value ₹10 each, with no offer for sale (OFS) component.

As part of the process, a maximum of 91,200 equity shares have been set aside for the market maker. Information like price band, bidding dates, and anchor allotment will be dscloed in the company’s Red Herring Prospectus (RHP).

Khambatta Securities Ltd has been designated as the Book Running Lead Manager (BRLM) and Bigshare Services Pvt Ltd as registrar to the issue. The company aims to use the net proceeds mainly to meet its working capital needs of ₹3,300 lakh and other general corporate purposes.

Financial highlights

The firm has registered robust financial performance during the previous three financial years, with steady growth in revenue as well as profitability. Revenue from operations increased to ₹21,005.50 lakh during FY25 from ₹16,803.79 lakh during FY24 and ₹12,429.75 lakh during FY23. EBITDA increased to ₹1,539.42 lakh in FY25, representing an EBITDA margin of 7.33%, which was higher than 6.03% in FY24 and 3.83% in FY23, reflective of operational efficiency improvements.

Profit after tax (PAT) was at ₹899.50 lakh in FY25, higher than ₹680.40 lakh in FY24 and almost three times that of ₹289.15 lakh in FY23. Yet, earnings per share (EPS) fell to ₹18.00 in FY25 from ₹28.07 in FY24 due primarily to fluctuations in the equity base, albeit better than ₹12.03 in FY23.

Net worth jumped to ₹2,772.10 lakh in FY25 from ₹1,660.44 lakh in FY24 and as little as ₹153.70 lakh in FY23, reflecting robust balance sheet growth. On the liability side, net borrowings increased to ₹2,898.69 lakh in FY25, compared with ₹1,260.38 lakh in FY24 and ₹1,471.97 lakh in FY23, reflecting higher leverage to fund expansion.

Capital structure and ownership

The company’s equity base is set to expand with the upcoming issue. The paid-up share capital will increase from 50.62 lakh shares pre-issue to up to 68.86 lakh shares post-issue. Due to dilution, the promoter’s and promoter group’s shareholding will reduce from the existing 98.23% to 72.21% post-issue (subject to final allotment).

*Subject to finalisation of the basis of allotment. Figures taken from the DRHP’s pre and post-issue shareholding tables.

Business and operations

Bedi Steels produces and deals in steel and alloy ingots, and from March 22, 2025, has ventured into a rolling mill, dealing in round bars, RCS or square bars, hex bars, and flat bars. Its products mainly cater to the rolling mills and forging units dealing in the automotive, infrastructure, and engineering value chains. The company reflects the overwhelming majority of revenue from Punjab, with the intent to broaden its geographic reach in the future.

Objects of the issue

The company will utilize ₹3,300 lakh for working capital during FY26, with the rest for general corporate purposes within regulatory boundaries. Scale-up requirements after capacity additions and a longer credit cycle for newly introduced rolled products are reasons quoted by management for the utilization of funds.

Key risks highlighted in the DRHP

• Concentration and geography: Revenue is heavily concentrated in Punjab, making the business vulnerable to regional demand and policy risks. Customer concentration is also significant.
• Liquidity and working capital: Working capital heavy model with a FY25 current ratio of approximately 1.00 and increased receivable days anticipated as the rolled product mix builds.
• Contingent liabilities: An appeal for GST demand of approximately ₹2,801.08 lakh for FY25, with a pre-deposit deposited.
• Compliance and records: Past gaps and delays in some filings and records, although the company points out corrective actions and continuous compliance.

What to watch?

• Final price band, lot size, and timeline in the RHP.
• Post-issue working capital cycle as the rolled product segments scale.
• Progress on geographic diversification beyond Punjab.
• Closure or progress in tax and litigation matters covered in the risk section.

REF: https://www.bsesme.com/download/348283/SME_IPO InPrinciple/DRHPBEDISteelsLimited_20250917173328.pdf

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