Steelmaker B.S. Sponge Ltd filed its draft red herring prospectus with SEBI on October 1, 2026, kicking off a ₹1,000 crore IPO — comprising a ₹800 crore fresh issue and a ₹200 crore offer for sale by promoters Parmanand Agarwal, Ashish Agarwal and Sulochana Agarwal.
The capital plan is balance-sheet repair first: ₹650 crore of the fresh proceeds is earmarked for repayment or pre-payment of borrowings plus accrued interest, with the remainder for general corporate purposes. Merchant bankers to the issue are ICICI Securities and Motilal Oswal Investment Advisors.
B.S. Sponge is an integrated steelmaker — sponge iron to TMT bars, HR coils, wire rods, ERW pipes and ferro alloys — based in Raigarh, manufacturing since 2005, with a 67-MW captive power plant.
The IPO queue keeps filling up even as markets wobble: October's early filings suggest issuers want to be SEBI-ready before the year's final window. For investors, the signal is the debt paydown — a ₹650 crore deleveraging changes the company's risk profile materially.
Why it matters for founders
Another mainboard aspirant, another balance-sheet clean-up story. For founders watching the IPO lane: B.S. Sponge's playbook is filing once cash flows are real and using the raise to deleverage — markets reward that discipline, and the October filing rush shows the window is open for profitable, asset-heavy businesses.
Find these funders and apply in one click — browse the investors behind these stories at /investors, then apply with your kit at /apply-kit.