Shri Bajrang Power IPO – Review, Allotment, Subscription, GMP & DRHP
Last Updated Date: Nov 19, 2022Shri Bajrang Power and Ispat Limited is an integrated manufacturer of long steel products in India. The current product portfolio comprises of TMT bars, wire rod, HB wires, sponge iron, pellets, steel billets, ferro alloys, and fly ash bricks. The Goel group is involved in, the manufacturing of steel, generation and sale of hydro-power, generation of captive power, and operating a regional television channel. Shri Bajrang Power IPO comprises of 41,18,000 Equity shares, face value of Rs.10 each.
Let’s have a detailed review of the company and analytics of the Shri Bajrang Power and Ispat IPO release date, IPO offer price, subscription, Shri Bajrang Power and Ispat IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.
Shri Bajrang Power and Ispat IPO Review & Ratings
| IPO Ratings & Review | |
| Criteria | Ratings |
| Industry Sentiments | 8.5/10 |
| Industry Ranking | 7.8/10 |
| Company Background | 7.9/10 |
| Company Reputation | 7.9/10 |
| Competitive Edge | 7.7/10 |
| Financial Statements | 7.8/10 |
| Popularity Index | 8.4/10 |
| Promoters Reputation | 7.7/10 |
| Retail Appetite | 7.9/10 |
| Top Brokers Review | 7.9/10 |
| Overall Ratings | 8.1/10 |
| Star Ratings | ★★★★☆ |
Summary of Shri Bajrang Power IPO
Shri Bajrang Power and Ispat Limited is an integrated manufacturer of long steel products in India. The current product portfolio comprises of TMT bars, wire rod, HB wires, sponge iron, pellets, steel billets, ferro alloys, and fly ash bricks. The Goel group is involved in, the manufacturing of steel, generation and sale of hydro-power, generation of captive power, and operating a regional television channel. The issue comprises of up to [●] Equity Shares (of face value of Rs. 10 each), aggregating up to Rs. 5,000 million.
From FY 2016-17 to FY 2017-2018, as per the Restated Financial Statements,
- During Financial Year 2017 – 2018, the revenue share from state of Chhattisgarh, Madhya Pradesh and Maharashtra constituted 61.90%, 16.52% and 9.63% respectively of the standalone restated revenues.
- The net worth of the Company as of March 31, 2018 was Rs. 5,163.32 million and as of March 31, 2017 was Rs. 4,399.59 million on the basis of the Restated Standalone Financial Statements. Further, the net worth of the Company as of March 31, 2018 was Rs. 6,739.17 million and as of March 31, 2017 was Rs. 4,437.10 million on the basis of the Restated Consolidated Financial Statements.
- During the financial year 2017-18 the Other Income of the company increased to Rs. 142.67 Millions as against Rs. 46.89 Millions for the financial year 2016-17, representing increase by 204.26% due to increase in interest income & insurance claim in FY 2017- 18.
- Company’s Net Profit after tax for the year 2017-18 is Rs. 368.88 Millions from the year 2016-17 of Rs. 282.19 Millions showing an increase of 30.7 % from last year, showing remarkable performance.
The Promoters of this company are Suresh Goel, Rajendra Goel, Narendra Goel, Anand Goel, Atlanta Securities Private Limited (ASPL) and Banka Finance & Securities Private Limited. (BFSPL). The lead manager to the issue is IDBI Capital Markets & Securities, Limited Equirus Capital Private Limited, SBI Capital Markets Limited and the Registrar to this issue is Link Intime India Private Limited .
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Shri Bajrang Power IPO Date
The opening and the closing date of Shri Bajrang Power and Ispat Limited IPO is not known yet.
Shri Bajrang Power and Ispat IPO Subscription
| Day / Date | QIB | NII | RII | Total Subscription |
| Day 1 | ||||
| Day 2 | ||||
| Day 3 | ||||
| Day 4 | ||||
| Day 5 | ||||
| Shares Offered or Net Issue |
The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.
Shri Bajrang Power and Ispat IPO Allotment Status
Here, you can find the Allotment Status of this IPO.
Shri Bajrang Power IPO Price Band
The face value of each share is Rs 10, but the price band of the IPO is not yet disclosed.
Shri Bajrang Power and Ispat IPO Equity Share Offering
Up to [●] Equity Shares (of face value of Rs. 10 each), aggregating up to Rs. 5,000 million each but Issue Price is yet to be disclosed .
Shri Bajrang Power and Ispat Limited – Company Overview
Shri Bajrang Power and Ispat Limited is an integrated manufacturer of long steel products in India. the current product portfolio comprises of TMT bars, wire rod, HB wires, sponge iron, pellets, steel billets, ferro alloys, and fly ash bricks. The Goel group is involved in, the manufacturing of steel, generation and sale of hydro-power, generation of captive power, and operating a regional television channel.
TMT Bars and HB wires, are sold under the brands “Goel TMT” and “Goel TMT WireX” respectively which, the Company believes, are well recognized brands in their respective categories. Revenues from sale of TMT Bars and HB Wires has been the pre-dominant revenue stream for the Company and contributes 58.57% of the standalone revenues for Financial Year 2017 – 2018.
Company caters primarily to the infrastructure and construction industry in India especially across the central and western regions of India which is serviced through 6 distributors with a network of 385 dealers.
The Company is promoted by Suresh Goel, Rajendra Goel, Narendra Goel, Anand Goel, Atlanta Securities Private Limited (ASPL) and Banka Finance & Securities Private Limited. (BFSPL) and is the guiding force behind the growth and strategic decisions of the Company.
Competitive Strengths of Shri Bajrang Power and Ispat Limited:
- Integrated manufacturer of long steel products in India;
- Diversified product portfolio and well recognized brands ‘Goel TMT’ and ‘Goel TMT WireX’;
- Efficient operations with focus on product quality and cost optimization;
- Established relationships with channel partners supported by large distribution network;
- Strong presence in central and western region.
- Strategically located manufacturing facilities.
- Strong track record of robust financial performance.
- Strong management team backed by experienced Promoters.
Business strategies of Shri Bajrang Power and Ispat Limited:
- Improve asset utilization and enhance the production capacities.
- Continued focus on cost optimization.
- Expand the network and further strengthen the key brands.
- Focus on sustainable and profitable growth.
Shri Bajrang Power and Ispat Limited – Financial Statements
A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:
Financial Summary:
| Amount (in INR & Millions) | |||
| 31-Mar-18 | 31-Mar-17 | 31-Mar-16 | |
| Total Assets | 16,196.57 | 16,064.10 | 15,670.67 |
| Total Revenue | 18,441.99 | 15,651.69 | 14,153.68 |
| Total Expense | 17,154.38 | 15,179.47 | 14,103.36 |
| Profit After Tax | 798.87 | 311.22 | (194.28) |
Earnings per Equity Share (in Millions)
| 31-Mar-18 | 31-Mar-17 | 31-Mar-16 | |
| Basic & Diluted | 60.93 | 23.71 | (14.86) |
From the above statements, one could find that the Shri Bajrang Power and Ispat Limited may perform well.
Shri Bajrang Power IPO – Promoters
The Promoter of this company are:
- Suresh Goel, Rajendra Goel
- Narendra Goel, Anand Goel
- Atlanta Securities Private Limited (ASPL)
- Banka Finance & Securities Private Limited. (BFSPL)
List of Related Parties (Key Managerial Personnel)
- Sandeep Goel
- Parul Verma
- Srinivasan Manoharan
- Vikas Goyal
- Ashok Kumar Harlalka
Interest in promotion of the Company
Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.
Property Interest
The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.
Interest in Intellectual Rights of the Company
Promoters has not shown any interest in acquiring the intellectual rights of the company.
Shri Bajrang Power IPO Offer Details or Issue Details
| Offer | Up to [●] Equity Shares (of face value of Rs. 10 each), aggregating up to Rs. 5,000 million |
| Of which | |
| Employee Reservation Portion | Not more than [●] Equity Shares (of face value of Rs 10 each) |
| Accordingly, | |
| The Net Offer | Not more than [●] Equity Shares (of face value of Rs. 10 each) |
| Of which: | |
| QIB Category | Not more than [●] Equity Shares |
| Of which: | |
| Anchor Investor Portion | Up to [●] Equity Shares |
| Balance available for allocation to QIBs other than Anchor Investors (assuming Anchor Investor Portion is fully subscribed) | [●] Equity Shares |
| Of which: | |
| – Available for allocation to Mutual Funds only (5% of the QIB Category (excluding the Anchor Investor Portion)) | Up to [●] Equity Shares |
| – Balance of QIB Category for all QIBs including Mutual Funds | [●] Equity Shares |
| Non-Institutional Category | Not less than [●] Equity Shares |
| Retail Category | Not less than [●] Equity Shares |
| Equity Shares outstanding prior to the offer | 52,284,620 Equity Shares |
| Equity Shares outstanding after the Offer | [●] Equity Shares |
Shri Bajrang Power IPO Issue Object
These are the IPO Issue Objects of the company
- Funding the Working Capital requirements of the Company:
- Repayment/ pre-payment of certain unsecured loans availed from banks and financial institutions
by the company; and - General Corporate Purposes
List of Upcoming IPOs in 2018
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| R R Industrial IPO | Sorich Foils IPO | 20 Microns IPO |
Shri Bajrang Power IPO – Basis of the Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Integrated manufacturer of long steel products in India;
- Diversified product portfolio and well recognized brands ‘Goel TMT’ and ‘Goel TMT WireX’;
- Efficient operations with focus on product quality and cost optimization;
- Established relationships with channel partners supported by large distribution network;
- Strong presence in central and western region.
- Strategically located manufacturing facilities.
- Strong track record of robust financial performance.
- Strong management team backed by experienced Promoters.
The relevant quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-16 | (14.87) | 15.42 | – |
| 31-Mar-17 | 23.71 | 7.04 | – |
| 31-Mar-18 | 60.93 | (4.77) | 395.02 |
- Industry P/E Ratio:
| Particulars | P/E ratio |
| Average | 13.42 |
| Highest | 32.09 |
| Lowest | 6.03 |
- Competitive Peers:
On the standalone basis:-
| Particulars | Face Value (in Rs.) | EPS (In Rs. Basic) | EPS (In Rs.Diluted) | P/E Ratio | RONW (%) | NAV (In Rs.) |
| Shri Bajrang Ispat & Power Limited |
10.00 | 60.93 | 60.93 | [●] | 15.42 | 395.02 |
| JSW Steel Limited | 1.00 | 19.24 | 19.14 | [●] | 16.57 | 115.45 |
| Jindal Steel & Power Limited |
1.00 | (3.95) | (3.95) | NM | NM | 234.53 |
| Prakash Industries Limited | 10.00 | 25.58 | 23.05 | 6.03 | 14.12 | 174.40 |
| Godawari Power & Ispat Limited |
10.00 | 51.64 | 51.64 | 10.21 | 20.98 | 246.15 |
| Sarda Energy & Mineral Limited |
10.00 | 52.27 | 52.27 | 8.10 | 13.73 | 379.68 |
| Kamadhenu Limited | 10.00 | 6.70 | 6.69 | 32.09 | 10.91 | 61.37 |
| Tata Sponge Iron Limited | 10.00 | 91.47 | 91.47 | 10.56 | 14.28 | 640.54 |
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Shri Bajrang Power and Ispat IPO Lead Managers
| Lead Managers |
| IDBI Capital Markets & Securities Limited
Equirus Capital Private Limited SBI Capital Markets Limited |
Shri Bajrang Power IPO Registrar to offer
| Registrar to the Offer |
| Link Intime India Private Limited C-101, 1st Floor, 247 Park, Lal Bhadur Shastri Marg, Vikhroli (West), Mumbai 400 083 Telephone: +91 022 49186200 Facsimile +91 022 49186195 Email: sbpil.ipo@linkintime.co.in Investor grievance e-mail: sbpil.ipo@linkintime.co.in Website: www.linkintime.co.in Contact Person: Ms. Shanti Gopalkrishnan SEBI Regn. Number: INR000004058 |
Other Details:
- Statutory Auditor – M/s. S S S D & Co Chartered Accountants
- Peer Review Auditor – M/s. S S S D & Co Chartered Accountants
- Bankers to the Company – Bank of Baroda, Bank of India, Bank of Maharashtra, Karnataka Bank, State Bank of India.
Shri Bajrang Power IPO Review by Top 10 Stock Brokers
| Top Stock Brokers Review | Company Reputation | Competitive Edge | Financial Statement | Popularity Index | Promoters Reputation |
| Angel Broking | 7.5/10 | 7.4/10 | 8.5/10 | 8.1/10 | 7.1/10 |
| Sharekhan | 7.2/10 | 7.1/10 | 8.6/10 | 8.1/10 | 7.2/10 |
| Kotak Securities | 7.3/10 | 7.5/10 | 8.4/10 | 8.1/10 | 7.3/10 |
| ICICI Direct | 7.3/10 | 7.3/10 | 8.7/10 | 8.1/10 | 7.1/10 |
| IIFL | 7.5/10 | 7.2/10 | 8.8/10 | 8.0/10 | 7.1/10 |
| Edelweiss | 7.5/10 | 7.4/10 | 8.4/10 | 8.3/10 | 7.2/10 |
| Zerodha | 7.4/10 | 7.1/10 | 8.5/10 | 8.1/10 | 7.0/10 |
| 5Paisa | 7.1/10 | 7.1/10 | 8.4/10 | 8.1/10 | 7.1/10 |
| Karvy | 7.4/10 | 7.3/10 | 8.2/10 | 8.1/10 | 7.1/10 |
| Motilal Oswal | 7.1/10 | 7.1/10 | 8.6/10 | 8.3/10 | 7.2/10 |
Shri Bajrang Power IPO Grey Market Premium
The Shri Bajrang Power and Ispat IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X.
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