Bombay Coated and Special Steels
Bombay Coated and Special Steels
IPO Size: Rs. 183 cr, entirely Fresh Issue
- For repaying Rs. 125 cr of Rs. 302 cr gross debt, as of 31.8.26
- For equipment lease of Rs. 16 cr
Price band: Rs. 78-82 per share
- Exactly a year ago, company raised Rs. 7.4 cr at Rs. 88 per share from individual investors
M cap: Rs. 515 cr, implying 35.5% dilution
IPO Date: Thu 29th Oct to Mon 2nd Nov 2026, Listing Thu 5th Nov 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Mumbai-based B2B Steel Processor
Bombay Coated and Special Steels converts steel coils into value-added processed steel products, mainly supplied to air conditioner and home and commercial refrigeration products makers like Amber Enterprises, Western Refrigeration, Haier Appliances, PG Technoplast, Dixon Electro Manufacturing, EPack Durable, IFB Refrigeration among others. Company procures ~85% of its steel coils requirements from JSW Steel Group.
Capacity Expansion
Bombay Coated has four manufacturing facilities located closer to customer facilities, at Wada and Bhiwandi in Maharashtra, Ghiloth in Rajasthan, and Sri City in Andhra Pradesh, with an aggregate installed processing capacity of 1.23 lakh MTPA, as of 30.6.26, with nearly 60% current capacity utilization.
It has undertaken Rs. 118 cr capex between FY24 to Q1FY27 and is expanding capacity at its largest plant, at Ghiloth, Rajasthan, for which new land, adjacent to existing plant has been purchased for Rs. 11.7 cr. While capacity expansion is not quantified nor is timeline indicated, it is likely to be in double digits, going by historical capacity addition.
Slim Margins
In line with company’s capacity addition at 29% CAGR between FY23 to FY26, production volume has risen at 33% YoY leading to 29% revenue CAGR.
FY26 revenue rose 20% YoY to Rs. 1,267 cr, with EBITDA up 17% YoY to Rs. 86 cr, leading to 6.8% EBITDA margin. While net margin is slim at 2.4%, PAT for FY26 stood at Rs. 30.5 cr, implying an EPS of Rs. 7.6 for FY26.
On production of 72,377 MT, Q1FY27 revenue stood at Rs. 397 cr with EBITDA of Rs. 32 cr and PAT of Rs. 15 cr, expanding net margin to 3.8% and EPS of Rs. 3.7 for Q1FY27. As H2 accounts for over 60% of revenue, outlook for the balance period of fiscal is encouraging.
On a net worth of Rs. 122 cr, RoE was 30%, although net debt to EBITDA is steep at over 3x. Post IPO, ROE will also contract to mid-teens, due to the heavy dilution, while debt will be elevated.