Leading integrated steel company Shri Bajrang Power and Ispat Ltd has received capital markets regulator Sebi's go-ahead to raise Rs 700 crore through an initial share sale.

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The initial public offer (IPO) consists of the issue of equity shares aggregating up to Rs 700 crore, according to the draft red herring prospectus (DRHP).

Shri Bajrang Power and Ispat Ltd (SBPIL), which filed its draft papers with Sebi in July, obtained its observations on August 26, an update with the regulator showed on Monday.

In Sebi parlance, the issuance of observations implies its go-ahead for the IPO.

Going by the draft papers, proceeds from the issue would be utilised towards repayment or prepayment, of certain borrowings of the company, funding incremental working capital requirements, and for general corporate purposes.

SBPIL is one of the leading integrated steel companies based out of central India and a key player in the country in terms of capacity for iron ore pellets, iron ore beneficiation, and sponge iron.

The company utilises its captive iron mine (with approval to mine 1.2 MTPA), and manganese ore mines to manufacture intermediate and long steel products, such as TMT Bars, ERW pipes manufactured through tubular section mill, wire rods, HB wires including binding wires, ferroalloys, steel billets, iron pellets, and sponge iron.

The Raipur's based firm has a consistent track record of delivering operating profitability, and since fiscal 2005, has remained profitable in each of the financial years.

It currently operates three manufacturing units located in Raipur. Further, the company intends to set up a 50MW solar power plant at Raipur.

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Equirus Capital Private Limited and SBI Capital Markets Limited are the books running lead managers to the issue. The equity shares of the company will be listed on the BSE and NSE.