SKY Alloys And Power Files IPO Papers, Targets Debt Reduction

SKY Alloys and Power Ltd has submitted draft documents to the Securities and Exchange Board of India (Sebi) for an initial public offering comprising 1.78 crore equity shares. The issue includes a fresh issue of 1.6 crore shares and an offer-for-sale of 18.07 lakh shares by promoters Ravi Singhal and Nisha Singhal.

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The company is also evaluating a pre-IPO placement of up to 17 lakh shares. If completed, the size of the fresh issue will be reduced accordingly.

Majority Of Proceeds Earmarked For Debt Repayment

According to the draft red herring prospectus, SKY Alloys and Power plans to deploy ₹190 crore from the net proceeds of the fresh issue towards repayment or prepayment of outstanding borrowings. The balance amount will be used for general corporate purposes.

As on March 2026, the company had total secured and unsecured borrowings of ₹318 crore. The proposed fundraising comes as the company seeks to strengthen its balance sheet and lower finance costs.

Steel Products Portfolio

SKY Alloys and Power manufactures sponge iron, mild steel billets, thermo-mechanically treated (TMT) bars and ferro alloys. The company operates from Chhattisgarh and caters to customers in the steel and infrastructure segments.

It competes with listed companies including Godawari Power & Ispat, Sarda Energy & Minerals, Gallant Ispat and Prakash Industries.

Financial Performance

For the nine months ended December 2025, the company reported revenue of ₹542.5 crore and a profit of ₹24.9 crore.

In FY25, revenue increased 30.1% year-on-year to ₹819.2 crore, while profit rose 12.8% to ₹52.95 crore.
The growth in turnover was supported by higher sales across its product portfolio, according to the draft papers.
Merchant Bankers Appointed

SKY Alloys and Power has appointed Gretex Corporate Services and Arihant Capital Markets as the book-running lead managers to the issue.

The company joins a growing list of manufacturing firms tapping the primary market amid sustained IPO activity. A number of companies across sectors have filed draft documents with Sebi in recent months as they look to raise capital for expansion and balance sheet improvement. The proposed offering is subject to regulatory approvals and prevailing market conditions.