SKY Alloys to Tackle ₹318 Crore Debt Burden with Draft IPO Plan
Chhattisgarh Steel Manufacturer Files Papers for Major Funding Raise
Chhattisgarh-based steel manufacturing firm, SKY Alloys and Power (SAPL), has filed preliminary documents with the Securities and Exchange Board of India (SEBI). The filing signals a strategic move aimed at significant debt reduction through an Initial Public Offering (IPO).The company is planning to raise substantial funds via this IPO to address its existing borrowings. This initiative underscores SAPL's commitment to strengthening its financial structure and boosting operational capacity.
Structure of the Proposed IPO Revealed
The proposed IPO is slated to be a combination offering. It includes a fresh issue component, along with an Offer for Sale (OFS) segment involving promoters Ravi Singhal and his wife Nisha Singhal.The total shares available in the IPO are structured around a ₹1.78-crore share count. The company may also explore raising funds by issuing 17 lakh shares during a pre-IPO placement, which falls under the fresh issue component.
Debt Reduction and Corporate Allocation Plan
SAPL is currently managing secured and unsecured borrowings totaling ₹318 crore as of March 2026. The IPO proceeds are earmarked to directly tackle this debt load.The company intends to utilize ₹190 crore of the net fresh issue proceeds exclusively for the repayment of existing borrowings. The remaining capital will be allocated towards general corporate purposes, facilitating future growth and expansion plans.
Financial Performance Snapshot and Growth Trends
On the financial front, SAPL has demonstrated strong performance across key metrics leading up to the IPO filing. For the nine-month period ending December 2025, the company reported a revenue of ₹542.5 crore and a profit of ₹24.9 crore.Looking at the full fiscal year 2025, the firm showed robust growth. Profit increased by 12.8 percent to reach ₹52.95 crore, while revenue saw a significant jump of 30.1 percent, climbing to ₹819.2 crore compared to the previous year.
IPO Management and Competitive Landscape
SAPL manufactures various essential materials including sponge iron, MS billets, TMT bars, and ferro alloys. The company operates in a competitive environment alongside listed peers such as Godawari Power & Ispat, Sarda Energy & Minerals, Gallant Ispat, and Prakash Industries.To manage the complexities of this public offering, SKY Alloys and Power has appointed Gretex Corporate Services and Arihant Capital Markets as its respective merchant bankers. This ensures professional oversight throughout the IPO process.
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