Bedi Steels Limited, a manufacturer and supplier of high-quality steel and alloy ingots, announced the filing of its Draft Red Herring Prospectus (DRHP) with BSE SME. The company's initial public offering comprises a fresh issuance of 18,24,000 Equity Shares, each with a face value of ₹10. Khambatta Securities Limited is the sole Book Running Lead Manager to the Issue, and Bigshare Services Private Limited is the Registrar.
The Ludhiana-based company manufactures steel and alloy ingots under the brand name "Bedi". Ingots (also called as 'Mother Product) are blocks of metal cast into convenient shapes for storage, transportation, and used to manufacture a wide range of products such as metal sheets, rods, bars, wires, and components for machinery and electronics through processes like casting, rolling, forging, and extrusion. The company supplies its products to forging companies in Ludhiana, Jalandhar and Mandi Gobindgarh in Punjab.
According to DRHP, Bedi Steels intends to utilize ₹33.31 crores of the total IPO proceeds to meet working capital requirement and remaining funds will be used for general corporate purposes.
Bedi Steels Limited operates a state-of-the-art manufacturing unit, which is strategically located at Doraha Village, Ludhiana, in Punjab, having a total area of 13,750 square yards. It has two separate sheds for housing rolling mill and furnace.
The company manufactures more than 50 grades of ingots on a regular basis and has the capability to produce more than 150 grades. It manufactures major grades, including SUP-9, 27MNCRB5, EN-18, EN-31, EN-45A, 20MNCR5, SAE8620, H13, EN24 and 31CRV3. Each grade is manufactured with a specific composition of metals and has specific utility.
In a strategic shift, the company has been going through a forward integration by installing a rolling mill at Ludhiana, having a capacity of 70,000 tonne per annum, to manufacture products such as Round Bar, RCS/ Square Bars, Hex Bars and Flat Bars and the production is expected to start from April 2025.
The company purchases the steel scrap from the metal scrap dealers as the major raw material to manufacture ingots. The steel scrap mainly has the traces of other metals like copper, nickel, chromium, magnesium, vanadium etc. It has two spectrometer devices which calculate the composition of metals in the scrap. Bedi Steels has dedicated a team in the quality assurance department led by its promoter Mr. Mahesh Gupta, which continuously foresees the manufacturing process.
The company is led by experienced promoters Mr. Mahesh Gupta, Mr. Prayank Gupta, Mrs. Sarita Gupta and Mrs. Khushboo Gupta. While Mr. Mahesh Gupta plays a critical role in developing new grades and increasing the functionality of grades through continuous Research and Development efforts and foreseeing the manufacturing process, Mr. Prayank Gupta looks after the sales and purchase and manages the supply chain.
Bedi Steels registered ₹105.52 crore revenue from operations with a profit (PAT) of ₹4.19 crore in the first half of the current financial year, ended September 30, 2024, compared to ₹168 crore revenue from operations and a profit (PAT) of ₹6.58 crore in FY24.
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