The B.S. Sponge IPO took its first formal step on 1 October 2026. The steel maker filed its DRHP, the draft prospectus a company files with SEBI before an IPO, for an issue of ₹1,000 crore. A fresh issue of ₹800 crore and an offer for sale of ₹200 crore by the promoters make up that total.
Where the money actually goes
Read the use of proceeds before anything else. Of the ₹800 crore the company raises for itself, ₹650 crore is earmarked for repaying or pre-paying borrowings and the interest accrued on them. That is about 81 per cent of the fresh issue going to lenders. The rest is listed as general corporate purposes, and issue expenses come out of the same pool, so less than ₹150 crore is left for anything else.
The ₹200 crore offer for sale is a different pocket. In an offer for sale, existing shareholders sell their own shares, so that money goes to the selling promoters and not to the company. Added up, lenders and promoters account for ₹850 crore of the ₹1,000 crore headline number.
| Item | Detail |
|---|---|
| Total issue size | ₹1,000 crore |
| Fresh issue | ₹800 crore |
| Offer for sale | ₹200 crore, by promoters |
| Debt repayment | ₹650 crore |
| Balance of fresh issue | General corporate purposes |
| Captive power plant | 67 MW |
| Lead managers | ICICI Securities, Motilal Oswal Investment Advisors |
| Status | DRHP filed with SEBI on 1 October 2026 |
What the company makes
B.S. Sponge sits across several steps of the steel chain rather than one. It converts iron ore into sponge iron, then makes billets, slabs, TMT bars, hot rolled coils, wire rods, ERW pipes and tubes, and ferro alloys. TMT bars are the ribbed rods used in construction, and ERW pipes are made by rolling steel strip and welding the seam. A 67 MW captive power plant supports the manufacturing site, which matters in a business where electricity is one of the biggest running costs.
One thing the filing coverage does not give you yet: the numbers. The wire reports carry the issue structure but no revenue or profit figures, and the DRHP itself is not on the SEBI website at the time of writing. Until it is posted, treat the size of the business as unknown rather than guessing from the issue size.
The fifth draft filing in three days
Draft papers are arriving in a rush. This is the fifth DRHP we have written up since 29 September, after Royal Chain's ₹1,000 crore filing, J B Ecotex, Vishakha Renewables and the largest of the lot, Inox Clean Energy at ₹10,000 crore. A filing is a plan, not a date. Several of these will reach the market in 2027, and some will not reach it at all.
What happens next
SEBI now reviews the draft and usually comes back with observations in one to three months. The company has to answer those before it can file a red herring prospectus with a price band and dates. Once the observation letter arrives, the approval stays valid for 12 months, so the launch window depends as much on market conditions as on the regulator.
There is no price band, lot size or grey market premium for this one yet, because none of those exist before the red herring prospectus. When they do appear, they will show up on our upcoming mainboard IPO tracker along with the SEBI approval date. The full filing detail is in the report on the DRHP.
