HSL’s IPO To Fund Its Capital Expansion Plans

Harison Steel (HSL) is yet another company to have come up with an IPO. HSL is planning to tap the primary market to raise funds. It will issue equity shares of a face value of Rs 10 each to raise funds worth Rs 60 crore. Considering positive market conditions and improving equity valuation, HSL is expected to launch its public offering in the market pretty soon.

HSL is currently engaged in the manufacturing of stainless steel ingots and billets of various grades and sizes. To complete the value chain by providing the synergy of forward integration, the company plans to set up a rolling mill which may utilise these billets for captive consumption. The company's manufacturing unit is located at Nehroli, Taluka, and Wada, in Maharashtra.

HSL started its commercial production in 2001 with an installed capacity of 30,000 MT per annum of mild steel ingots/billet/slabs. In 2007, the company had expanded by venturing into production of stainless steel ingots/billets/blooms/slabs/runners/risers. Currently, HSL's main thrust lies on manufacturing of stainless steel billets. The company is an ISO 9001:2008 certified for all areas of operations and has been awarded the ‘TUV’ Certification.

HSL plans to use the IPO proceeds to finance its capital expansion for setting up a rolling mill with a proposed capacity of 30,000 MT per annum worth of Rs 41.60 crore and to finance partially incremental working capital requirements up to Rs 8 crore. As the company has not declared the IPO related details after filing a DRHP, we will visit this public offering again in the near future. Till then, keep watching this space for more.