A Gujarat-based vertically-integrated TMT-bar maker opens its Rs 303.90 crore mainboard issue on September 25
German Green Steel & Power Ltd is a vertically-integrated iron and steel manufacturer operating primarily in western India, with a strong Gujarat presence and a focus on thermo-mechanically-treated (TMT/TMX) bars — a play on India’s construction, infrastructure and real-estate steel demand, with a distinctive green-energy angle (despite the name, there is no German connection; it is a domestic brand).
The vertical integration is the core of the model. The company manufactures TMT bars, mild-steel (MS) billets and sponge iron — controlling the chain from upstream inputs (using steel scrap, supporting recycling) through to finished bars, which supports quality, cost control and supply security.
It serves a diversified client base of distributors, dealers and direct institutional customers across real estate, roadways and thermal plants, and is progressively expanding its value-added product mix.
The green-power edge is the differentiator. German Green Steel operates two facilities at Samakhiyali and Viramgam in Gujarat, and notably integrates captive coal-based power, waste-heat-recovery systems, and hybrid wind-and-solar generation — giving it cost-effective energy for its energy-intensive steel-making, and underpinning its green-steel certification.
Revenue is predominantly domestic (Gujarat-centric), with minor exports, positioning it as a key regional steel supplier.
The promoters are Inamulhaq Shamsulhaq Iraki, Abdulhaq Shamsulhaq Iraki and Ibrarulhaq Inamulhaq Iraki.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 25, 2026 |
| Issue Closes | September 29, 2026 |
| Listing | BSE, NSE (Mainboard) |
| Listing Date | October 5, 2026 |
| Price Band | Rs 132 – Rs 139 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 303.90 crore (~2,18,63,309 shares) |
| Fresh Issue | Rs 290 crore |
| Offer for Sale | Rs 13.90 crore (10,00,000 shares) |
| Lot Size | 107 shares |
| Min. Retail Investment | Rs 14,873 |
| Market Cap (Pre-IPO) | Rs 1,047.35 crore |
| Lead Manager | Systematix Corporate Services Ltd. |
| Registrar | Bigshare Services Pvt. Ltd. |
The issue is majority fresh (Rs 290 crore) with a small Rs 13.90 crore OFS. From the net proceeds, the company will utilise funds for capex on the Samakhiyali manufacturing facility and hybrid wind-solar power plant, repayment or prepayment of outstanding borrowings, and general corporate purposes — a capacity-plus-green-power-plus-deleveraging use of proceeds.
Price Band
At the upper band of Rs 139, on FY26 earnings the issue is valued at a pre-IPO P/E of about 9.48x (8.85x–9.32x on diluted EPS) — a sharp discount to the industry average of ~35x, and among the cheapest in its listed peer set.
GMP
The German Green Steel IPO GMP ranged from around ₹15 to ₹29, and stood at about ₹24–29 in the days around opening
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from Operations | 1,129.78 | 1,507.57 | 1,678.98 |
| EBITDA Margin (%) | 7.02 | 7.75 | 9.94 |
| Net Profit | 41.66 | 59.94 | 79.88 |
| Net Worth | 176.06 | 292.55 | 421.55 |
The financials show strong, consistent growth. Revenue from operations grew from Rs 1,129.78 crore in FY24 to Rs 1,678.98 crore in FY26 (up ~11% in FY26), and net profit nearly doubled over two years, from Rs 41.66 crore to Rs 79.88 crore (up ~33% in FY26).
EBITDA margin improved steadily from 7.02% to 9.94%, and PAT margin from 3.7% to 4.8% — a genuine profitability improvement driven by vertical integration and captive/renewable power.
RoNW has declined for three straight years (23.7% → 18.9%) — because the equity base has grown faster than profit. Return ratios (RoE ~18.86%, RoCE ~19.31%), and net worth has grown. The steel business remains thin-margin (~5% PAT) and cyclical.
Peer Comparison
| Company | EPS (Rs) | P/E | RoNW (%) | Revenue (Rs cr) |
|---|---|---|---|---|
| German Green Steel & Power | 14.91 | 9.48 | 18.86 | 1,798.94 |
| Beekay Steel Industries | 22.54 | — | 3.49 | 6,009.06 |
| Gallant Ispat | 20.07 | — | 14.60 | 16,676.20 |
| Kamdhenu | 14.57 | 45.97 | 19.77 | 5,131.43 |
| MSP Steel & Power | 0.60 | — | 3.28 | 1,123.94 |
| VMS TMT | 4.95 | 27.80 | 9.22 | 2,634.50 |
Against the listed steel peer set, German Green Steel’s ~9.48x P/E is by far the cheapest — a fraction of Kamdhenu (~46x) and VMS TMT (~28x), and well below the ~35x industry average — while its ~18.86% RoNW is among the healthier.
According to a note by Swastika Investmart Ltd, which assigns a Neutral rating, the company is a “vertically integrated Gujarat-based TMT bar manufacturer with green-steel certification and a growing value-added product mix,” “priced at 8.85x–9.32x FY26 diluted EPS, a sharp discount to the industry average of ~35x — among the cheapest in the peer set.” It notes “PAT margins are improving (3.7%→4.8%) but RoNW has declined for three straight years (23.7%→18.9%) as the equity base has grown faster than profit,” and that “high customer concentration (top 10 = 50.6% of revenue) and steel sector cyclicality expose earnings to demand/pricing swings.” Its verdict: “Attractive valuation is positive, but RoNW moderation and customer concentration warrant caution. Conservative investors may wait for 1–2 quarters of post-listing performance.”
Risks to Consider
The top 10 customers account for 50.6% of revenue — a high dependence, so the loss of, or reduced orders from, a major client could hit revenue and utilisation.
RoNW has fallen for three straight years (23.7% → 18.9%) as equity grew faster than profit — so per-rupee returns are moderating even as absolute profits rise, a monitorable for the quality of the growth.
Steel is highly cyclical and the business runs at ~5% PAT margins, so earnings are exposed to demand and pricing swings and to raw-material (scrap, ore, coal) price volatility and supply disruptions.
Operations and revenue are highly concentrated within Gujarat — exposing the business to regional demand, competition and disruption.
The Samakhiyali expansion and hybrid wind-solar plant face risks of delays, cost overruns and missing approvals; and high indebtedness with stringent covenants could restrict operations (though the raise partly deleverages).
OFS and cyclical-timing considerations. The Rs 13.90 crore OFS goes to selling shareholders, and the deep discount partly reflects steel-sector cyclicality that the market prices cautiously.
