B S Sponge IPO
B S Sponge Limited has filed a draft red herring prospectus (DRHP) with SEBI for a mainboard IPO, a fresh issue and offer for sale. As of SEBI's report dated 30 October 2026, the draft is under SEBI review. The draft proposes a fresh issue of up to ₹800 crore and an offer for sale of up to ₹200 crore by promoters Parmanand Agarwal and Ashish Agarwal and promoter group member Sulochana Agarwal. In FY26 the company made a profit of ₹171.11 crore on revenue of ₹2,592.52 crore. The price band, lot size and IPO dates are not announced yet.
- Status
- Under SEBI reviewSEBI report, 30 Oct 2026
- SEBI received draft
- 5 Oct 2026
- Type of issue
- Fresh issue and offer for sale
- Lead manager
- ICICI Securities Limited
- Last SEBI contact
- 8 Oct 2026
- Price band and dates
- Not announced
Where it stands
B S Sponge IPO: where it stands
SEBI processing status, 30 Oct 2026- Draft filed with SEBI5 Oct 2026
- SEBI reviewUnder SEBI review
- SEBI observations
- RHP and price bandNot yet
- Bidding and listingNot yet
SEBI is examining the draft offer document. This is SEBI's own list of drafts under process.
SEBI received the draft on 5 October 2026, 32 days ago, and its last communication on the draft was on 8 October 2026 (day count is our calculation).
DRHP at a glance
B S Sponge DRHP at a glance
Draft red herring prospectus, 30 Sep 2026What the company's draft offer document says. Figures can change in the red herring prospectus, and nothing here is a review or a recommendation.
The business
DRHP, Risk Factors (p. 20 to 25) and Basis for Offer Price, KPIs (p. 114 to 118)B S Sponge makes steel products, mainly sponge iron and HR coils, which together gave 58.73% of FY26 revenue, at a single plant in Raigarh, Chhattisgarh. It buys coal, iron ore, pellets and manganese ore from outside suppliers.
Customers in central India gave 74.87% of FY26 revenue. Revenue grew about 31.7% a year from FY24 to FY26, while profit grew about 9.0% a year (DRHP).
The offer
DRHP cover page and The Offer (p. 68)| Fresh issue | Up to ₹800 croreMoney goes to the company |
| Offer for sale | Up to ₹200 croreBy Parmanand Agarwal (average cost ₹0.15 a share), Ashish Agarwal (₹0.17) and Sulochana Agarwal (nil) |
| Shares before the IPO | 21,12,39,450 |
| Pre-IPO placement | Up to ₹160 croreOptional; would reduce the fresh issue |
| Listing | BSE and NSEMainboard, under Regulation 6(1) |
| Lead managers | ICICI Securities Limited and Motilal Oswal Investment Advisors Limited |
| Registrar | MUFG Intime India Private Limited |
| Promoters | Parmanand Agarwal, Ashish Agarwal, Richhi Agarwal, Bijay Kumar Agarwal and Nachiketa Gift-Ads Private Limited |
What the company plans to do with the money
DRHP, Objects of the Offer (p. 103 to 104)| Object | ₹ crore | Share of fresh issue |
|---|---|---|
| Repaying or prepaying certain borrowings and interest | 650.00 | 81.3% |
| General corporate purposes (set later, up to 25% of the fresh issue) |
Each object's share of the ₹800 crore fresh issue, shown in the table, is our calculation. Offer expenses are deducted before these amounts. The offer for sale money goes to the selling shareholders, not the company.
Financials
DRHP, Summary of Restated Financial Information (p. 70 to 74) and Basis for Offer Price, KPIs (p. 114 to 118), ₹ crore| ₹ crore | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from operations | 1,494.39 | 2,187.82 | 2,592.52 |
| Operating EBITDA | 285.08 | 336.59 | 373.01 |
| Operating EBITDA margin | 19.08% | 15.38% | 14.39% |
| Profit after tax | 143.95 | 158.43 | 171.11 |
| Diluted EPS (₹) | 6.81 | 7.50 | 8.10 |
| Net worth | 385.81 | 544.17 | 714.82 |
| Cash from operations | 182.53 | 300.91 | 144.07 |
| Return on equity | 37.88% | 29.61% | 24.18% |
| Net debt to operating EBITDA | 1.72 | 1.59 | 1.80 |
Restated figures. Net worth is as given in the KPI table. Margins have fallen each year as revenue grew. Revenue grew about 31.7% a year from FY24 to FY26 (our calculation).
Listed peers named in the draft
DRHP, Basis for Offer Price (p. 115 to 116).Industry P/E ranges from 26.86x (Gallantt Ispat) to 44.61x (Jai Balaji), average 32.97x. The P/E for B S Sponge is not given until the price band is set.
| Company | Diluted EPS (₹) | P/E | RoNW |
|---|---|---|---|
| B S Sponge (FY26) | 8.10 | Set with the price band | 24.18% (RoE) |
| Shyam Metalics and Energy | 37.97 | 28.29x | 9.70% |
| Jai Balaji Industries | 1.42 | 44.61x | 5.93% |
Risks the draft lists first
DRHP, Risk Factors (p. 20 to 25)- One plantAll manufacturing is at its plant in Raigarh, Chhattisgarh. (Risk factor 1, p. 20)
- Raw materialsCosts or shortages of coal, iron ore, pellets and manganese ore would hurt results. (Risk factor 2, p. 21)
- Few suppliersThe top 10 suppliers gave 68.91% of FY26 raw material purchases. (Risk factor 3, p. 22)
- Central IndiaCentral India gave 74.87% of FY26 revenue. (Risk factor 4, p. 23)
- Two productsSponge iron and HR coils gave 58.73% of FY26 revenue. (Risk factor 5, p. 25)
Documents
B S Sponge DRHP and documents
SEBI filingsThe DRHP has the issue size, use of the money, financials, promoters and risk factors. It can change before the final red herring prospectus.
Questions
B S Sponge IPO FAQs
When will the B S Sponge IPO open?
The date is not announced. The company first needs SEBI's observations on its draft, then files a red herring prospectus with the dates. SEBI received the draft 32 days ago (our calculation).
Has SEBI approved the B S Sponge IPO?
SEBI is examining the draft offer document. This is SEBI's own list of drafts under process. Source: SEBI processing status as on 30 October 2026.
What is the B S Sponge IPO price band and lot size?
Not announced. The price band is published at least two working days before the IPO opens, and the lot size is set with it. We add both here the day they are filed.
What is the B S Sponge IPO GMP?
We do not publish a GMP. Grey market premium is unofficial: it is not regulated by SEBI and not published by any exchange. Before the price band is announced there is no issue price to compare it with.
Who is the lead manager of the B S Sponge IPO?
ICICI Securities Limited is the coordinating book running lead manager named in SEBI's processing status report. The DRHP lists all the lead managers and the registrar.
What will B S Sponge do with the IPO money?
According to the DRHP, the fresh issue money goes to repaying or prepaying certain borrowings and interest (₹650.00 crore), and the rest to general corporate purposes. The offer for sale money goes to the selling shareholders, not the company.
What does B S Sponge do?
B S Sponge makes steel products, mainly sponge iron and HR coils, which together gave 58.73% of FY26 revenue, at a single plant in Raigarh, Chhattisgarh. It buys coal, iron ore, pellets and manganese ore from outside suppliers.
Where can I read the B S Sponge DRHP?
On SEBI's website, where the draft red herring prospectus was published on 5 October 2026. The draft is dated 30 September 2026 and runs to 512 pages. It has the issue size, use of the money, financials and risk factors.
Sources: SEBI processing status of draft offer documents as on 30 October 2026, SEBI's yearly processing status archive and SEBI's list of draft offer documents, and the company's DRHP dated 30 September 2026. Day counts and the last date to open are our calculations. This page is information only, not a recommendation.