Kolkata-based Shyam Steel Industries, a TMT (thermo mechanically treated) rebar maker, has filed draft red herring prospectus for an initial public offering.

The IPO consists of a fresh issue of up to ₹200 crore and an offer-for-sale of up to 66.7 lakh equity shares. While promoters will sell up to 11,60,300 shares, other shareholders will sell up to 55,09,700 shares through the issue. The company filed the DRHP with market regulator SEBI on Tuesday.

While the company did not disclose the size of the IPO, market sources pegged it at around ₹500 crore.

Axis Capital, Edelweiss Financial Services, SBI Capital Markets and IIFL Holdings are the book-running lead managers to the issue and Link Intime is the registrar to the issue.

The company proposes to utilise the net proceeds from the IPO towards repayment and prepayment of certain borrowings and for general corporate purposes. The shares are proposed to be listed on the BSE and the NSE.

Shyam Steel is primarily involved in the production of TMT rebar with backward integration in sponge and billet and sale of premium TMT bars (long steel products) in India.

The company has its steel manufacturing plants in West Bengal. The aggregate installed iron and steel production capacity of the plant is 15,84,656 mtpa, including an installed TMT rebar production capacity of 6,41,960 mtpa.

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