Steel Infra Solutions files DRHP for IPO

New Delhi, July 30, 2025 – Steel Infra Solutions Company Limited (SISCOL) has filed its Draft Red Herring Prospectus (DRHP) with SEBI dated July 28, 2025, proposing a 100% book-built Initial Public Offering (IPO) worth ₹960 crore. The offer includes a fresh issue and an Offer for Sale (OFS) of 1.42 crore shares by promoters, promoter group entities, and institutional investors. The equity shares are proposed to be listed on NSE and BSE.

The offering follows steady financial growth and business expansion. The company has reduced borrowings, improved return on net worth, and strengthened its asset base. Its upcoming capacity addition and a ₹633.17 crore order book position it well to benefit from infrastructure-led demand.

IPO Structure

The IPO comprises a fresh issue of equity shares aggregating up to ₹960 crore and an offer for sale of 1,42,40,473 equity shares of face value ₹10 each. The total offer size in value terms is yet to be finalised. The offer is being made under Regulation 6(1) of the SEBI ICDR Regulations, 2018.

Objects of the Offer (Fresh Issue Proceeds Utilization)

Steel Infra Solutions plans to use the fresh issue proceeds primarily for capital expenditure and working capital needs. It has allocated ₹296.99 crore for back-side expansion at its Vadodara facility and ₹97.04 crore for Bay 4 expansion at the same location.

The company will also invest ₹59.67 crore to modernize its Hyderabad and Bhilai units. Additionally, ₹270.00 crore is earmarked for working capital requirements. A portion of the funds, not exceeding 25% of the gross proceeds, will be used for general corporate purposes.

Offer for Sale (OFS) Breakup

A total of 1,42,40,473 shares are being offered through the OFS by a mix of promoters, promoter group entities, and institutional investors. MK Ventures, an investor selling shareholder, is offering 30,32,136 shares, while promoter Ravikant Uppal is offloading 26,23,324 shares.

Among the promoter group, Surin Holdings LLP is offering 20,54,835 shares and Poonam Sharma is divesting 23,00,000 shares. The remaining shares are being sold by other investor entities including Meridian Investments, Setu, and Prime.

Financial Performance (Restated Consolidated)

Steel Infra Solutions Company Limited reported a rise in revenue from operations to ₹636.10 crore in FY25, up from ₹573.49 crore in FY24 and ₹511.72 crore in FY23. Profit after tax also increased steadily, reaching ₹32.96 crore in FY25, compared to ₹24.85 crore and ₹17.53 crore in the previous years. Net worth improved to ₹217.40 crore from ₹188.22 crore in FY24.

Total assets stood at ₹494.30 crore in FY25, reflecting business expansion. The company reduced its borrowings significantly to ₹13.58 crore from ₹33.87 crore in FY24 and ₹40.53 crore in FY23. Return on Net Worth rose to 15.16% in FY25, continuing its upward trend over three fiscal years.

Company Overview

Steel Infra Solutions is an integrated structural steel solutions provider catering to EPC, PMC, and end-user clients. It offers services across design, engineering, fabrication, and erection of steel structures for large-scale projects such as refineries, power plants, metros, high-rise buildings, warehouses, and data centers. Since FY18, it has executed 187 projects with 261,735 metric tonnes of fabricated steel and operates six manufacturing units across Bhilai, Vadodara, and Hyderabad, with an annual capacity of 1,00,000 MT, and plans to add 15,000 MT in Vadodara by FY27.

Lead Manager and Registrar

The Book Running Lead Manager of the issue is DAM Capital Advisors Ltd, while the Registrar is MUFG Intime India Pvt Ltd (formerly Link Intime).

Promoters

The company is promoted by:

Ravikant Uppal, Rajagopal Kannabiran, Ranjan Sharma, Zarksis Jahangir Parabia, Surinder Choudhari, Sunita Choudhari, Aman Choudhari, Arun Choudhari, Akash Choudhari, and Surin Holdings LLP.

Listing & Pre-IPO Placement Clause

The equity shares are proposed to be listed on NSE and BSE, with one exchange to be the designated stock exchange (yet to be finalized). The company may consider a Pre-IPO placement of up to 20% of the fresh issue, which, if executed, will reduce the offer size accordingly.

Conclusion

The IPO filing, backed by promoter and institutional stake dilution, signals readiness for expansion. The market is reading the move as a scale-up strategy supported by strong financials and a solid order book. Timely execution will be key to sustaining growth.

REF: https://nsearchives.nseindia.com/corporate/Registration_29072025230058_SISCOLDRHP.pdf

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