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Informist, Wednesday, Jun. 24, 2026

MUMBAI – Sky Alloys and Power Ltd. has filed a draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering of a total of up to 17.89 million shares. The offer comprises a fresh issue of up to 16.08 million shares and an offer for sale of up to 1.81 million shares with a face value of INR 10 per share.

Promoters Ravi Singhal and Nisha Singhal will offload up to 1.20 million shares and up to 602,200 shares, respectively. The public offer, to be made through the book-building process, is being managed by two book-running lead managers – Gretex Corp. Services Ltd. and Arihant Capital Markets Ltd. MUFG Intime India Pvt. Ltd. is the registrar for the offer. Shares of the company are proposed to be listed on both the National Stock Exchange and BSE.

Sky Alloys and Power is an integrated steel and manufacturing company with a product portfolio comprising sponge iron, mild steel billets, thermo-mechanically treated bars, and ferro alloys, among others. The company's manufacturing units are located in Raigarh, Chhattisgarh. The company also has an integrated captive power infrastructure to support its manufacturing operations and enhance energy efficiency.

The company operates waste-heat recovery boiler and atmospheric fluidized bed combustion boiler-based captive power facilities. These facilities contribute to meeting the company's in-house power requirements, according to the draft papers. Additionally, the company operates two captive power plants and a 9 megawatt-peak solar power plant at Raunda. It is also in the process of commissioning a 19-megawatt-peak solar power plant in Keshdabri and establishing a 22-megawatt-peak solar power plant in Mopka.

The company will use INR 1.90 billion of the funds raised to repay or pre-pay its borrowings. The part of net proceeds to be deployed for general corporate purposes will be finalised once the offer price is determined, the company said in its draft papers. However, the amount to be used for general corporate purposes will not exceed 25% of the gross proceeds. In the event that net proceeds are not completely utilised for the aforementioned purposes by the end of financial year 2026-27 (Apr-Mar), due to economic and business conditions, timely completion of the offer, or external market conditions, the company will determine the utilisation of the remaining net proceeds in subsequent periods.

Qualified institutional buyers can be allocated up to 50% of the shares on offer. Not less than 15% of the offer will be available for allocation to non-institutional bidders, while not less than 35% of the offer will be available for allocation to retail individual bidders, the company said in its draft papers.

Speaking about the risk factors, the company highlighted that it is subject to volatility in demand and pricing, which is common in the iron and steel industry and is cyclical in nature. A fall in steel prices may adversely affect the business of the company as it derives majority of its revenues from its steel products. Further, a significant portion of the company's revenues comes from its top 10 customers. But the company does not have any long-term arrangements with these customers. Thus, any disruptions to existing arrangements could adversely impact the company's business. The company has had negative cash flows from investing activities for the nine months ended December and in FY25, FY24, and FY23, and may continue to experience these in the future.

There is pending tax litigation against the company and some of its promoters, promoter group members, and two of its former directors. Some of these parties also have outstanding legal proceedings. Adverse outcomes in these matters could negatively affect the company's cash flows.

For the nine months ended December, the company reported a net profit of INR 249.63 million on revenue of INR 5.43 billion. For the financial year 2024-25 (Apr-Mar), the company's bottom line came in at INR 529.54 million, up 13% on year, while its revenue jumped over 30% on year to INR 8.19 billion. (Shruti Nair)  End

Edited by Avishek Dutta

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