The Gujarat-based steel major kicks off its public debut on Friday, September 25, seeking ₹303.9 crore at the top of its ₹132–₹139 price band. The issue closes on September 29, with a minimum lot size of 107 shares. It isn't just a retail play; the anchor book cleared ₹91.17 crore, with six institutional investors grabbing 65.58 lakh shares at the maximum price of ₹139. Necta Bloom VCC, Lords MultiGrowth Fund, and Compact Structure Fund led the charge, signaling early institutional confidence in the vertical integration story.
Financials from the draft red herring prospectus show revenue from operations hitting ₹1,678.98 crore in FY26, with a net profit of ₹79.88 crore. The company is betting on expansion, planning to use fresh issue proceeds to boost TMT bar production at its Samakhiyali facility in Kutch and build a hybrid wind-solar power plant. A chunk of the funds will also retire outstanding debt, a move that could clean up the balance sheet over time.
But the street is split. SBI Securities rates the IPO 'Neutral,' citing the cyclical nature of the steel sector and recent price volatility. They argue it’s better to wait and track post-listing performance before committing capital. Anand Rathi, however, suggests a 'Subscribe for Long Term' stance, pointing to the company's captive power setup and established distribution network in Gujarat. They did flag customer concentration risk, noting that reliance on a few dealers could lead to revenue swings.
The IPO structure is a 97.1% fresh issue of ₹290 crore and a 2.9% OFS of 10 lakh shares. The issue is reserved 50% for QIBs, 15% for NIS, and 35% for retail. Book-running lead managers include Systematix Corporate Services, Emkay Global Financial Services, and Pantomath Capital Advisors. Shares are slated for listing on both BSE and NSE, with grey market premiums currently hovering above the issue price—a volatile indicator that shouldn't drive your bid.
For traders, the key watch item is the utilization of funds. If the wind-solar plant comes online as planned, energy costs could dip, boosting margins in a sector where every rupee counts. Long-term investors should monitor the customer concentration risk and how the company navigates the current steel price correction. The listing date will be announced after allocation, likely in early October.