German Green Steel and Power Ltd. launched its initial public offering (IPO) on September 25, 2026. The company set a price range of Rs 132-139 per share, with a face value of Rs 10 each. NDTV Profit’s special research section provides in-depth equity and economy reports, offering subscribers valuable insights into companies, sectors, and the broader economy.
The IPO aims to raise Rs 303.90 crore, comprising a fresh issue of 2.09 crore shares totaling Rs 290 crore and an offer for sale of 10 lakh shares worth Rs 13.90 crore. This structure allows the company to raise capital while providing an exit opportunity for existing shareholders.
Subscription Details and Investment Requirements
Investors can subscribe to a minimum of 107 shares and multiples thereof. At the upper price band, the minimum investment required is Rs 14,873, making it accessible to a wide range of investors. The IPO will remain open until September 29, 2026, giving investors ample time to participate.
German Green Steel plans to allocate the funds for capital expenditure at its Samakhiyali facility in Gujarat, investing in hybrid wind and solar power plants, repaying borrowings, and general corporate purposes. These initiatives are expected to enhance the company’s operational efficiency and sustainability.
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Company Background and Financial Performance
Founded in 2008, German Green Steel & Power is a vertically integrated steel manufacturer. It specializes in TMT bars, MS billets, and sponge iron, operating under the German TMT brand with manufacturing facilities in Gujarat. The company’s vertical integration allows it to control the entire production process, from raw materials to finished products.
Financially, the company reported a revenue increase to Rs 1,679 crore in FY26 from Rs 1,507.6 crore in FY25, reflecting consistent growth over the years. Its EBITDA rose to Rs 167 crore, and PAT jumped to Rs 79.9 crore in FY26, indicating improving profitability. The company’s financial performance has been supported by its focus on operational efficiency and market expansion.
Potential Risks and Valuation Metrics
Key risks include high customer concentration, with the top 10 customers accounting for over 50% of revenue, and dependence on dealers and distributors. Additionally, the company faces price volatility in steel and raw materials, reliance on third-party suppliers, and significant capital expenditure requirements. These risks could impact the company’s financial performance and stability.
At the upper price band, the company is valued at 13.1x FY26 P/E and 8.2x FY26 EV/EBITDA, with a market capitalization of ₹10,474 million. Anand Rathi has assigned a “Subscribe for Long Term” rating, noting the valuation appears fairly priced. However, investors should consider the risks associated with high customer concentration and reliance on distributors, which could lead to revenue volatility and customer attrition.
