OfBusiness did not disclose the deal size in the CCI application.
Sources briefed on the matter said OfBusiness’s parent firm OFB Tech is acquiring a 100% stake in SMW Ispat, mainly to acquire its key brand, Sangam TMT.
“The present notification is being made by the acquirer (OfBusiness) to seek the approval of the honourable commission to purchase a majority equity stake of the target (SMW Ispat) from the promoters and existing shareholders of SMW Ispat,” according to the CCI filing.
OfBusiness has said that the deal does not lead to any competition concerns.
SoftBank-backed OfBusiness last
raised $325 million in December, taking the total capital raised by the company in 2021 to $800 million.
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ET reported earlier this week that its financial services arm Oxyzo Financial Services
raised $200 million in its maiden funding round, at a valuation of $1 billion.
OfBusiness co-founder and CEO Asish Mohapatra told ET in December that the company would use the fresh funds for a slew of acquisitions. Mohapatra declined to comment on the SMW Ispat deal on Friday.
OFB Tech’s core business is the raw material supply chain in segments such as food grains, metals, plastics, petrochemicals, industrial chemicals and building materials.
Maharashtra-based SMW Ispat has a 40-million-tonne induction furnace for making TMT bars, steel billets and sponge iron. SMW’s brand Sangam Steel houses a beneficiation plant that produces iron ore, with a capacity of 2,000 tonnes a day.
Investors and analysts have been bullish about the steel sector, with the benchmark HRC (hot-rolled coil) steel prices touching an all-time high of Rs 80,000 a tonne and rebar prices crossing Rs 75,000 a tonne.
HRC steel products are typically used in making automobiles, transformers and white goods while rebars like TMT are used in construction.
