German Green Steel
IPO Size: Rs. 304 cr
- Fresh Issue of Rs. 290 cr (28% dilution) for (i) capex Rs. 226 cr (ii) repaying Rs. 77 cr of Rs. 311 cr gross debt as of 31.8.26
- Offer for Sale (OFS) of Rs. 14 cr by promoter (97% stake to shrink to 69%)
Price band: Rs. 132-139 per share
- Exactly a year ago, company raised Rs. 50 cr at Rs. 270 per share from individual investors, with current IPO price being half of pre-IPO price after 12 months
M cap: Rs. 1,047 cr (IPO is 29% of m cap)
IPO Date: Fri 25th Sep to Tue 29th Sep 2026, Listing Mon 5th Oct 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Gujarat-based TMT Bar Maker
German Green Steel is an Ahmedabad based TMT bar manufacturer, having 2 plants in Gujarat, supported by 75% power need met captively (thermal and renewable), to process steel scrap into sponge iron, MS billets and TMT Bars. Total installed capacity across products is 7.25 lakh MTPA, of which 3 lakh MTPA is TMT bars, utilised 88% in FY26. Company markets its green-steel-rated TMT bars, mainly in Gujarat, under the brand name ‘German TMT’.
Major Capacity Expansion
Over the next 2 years, it is expanding overall capacity by 60% to 11.7 lakh MTPA, comprising more than doubling sponge iron capacity to 1.49 lakh MTPA, 55% increase in MS billets capacity to 5.5 lakh MTPA and 55% increase in TMT bars capacity to 4.7 lakh MTPA. This capacity increase is supported by 25 MW hybrid wind-solar power plant, of which 16 MW has been commissioned recently.
As of 31.3.26, the capital work in progress of Rs. 160 cr provides healthy growth visibility on net fixed assets of Rs. 488 cr.
Consistent and Growing Margins
FY26 revenue rose 11% YoY to Rs.1,679 cr, but revenue from TMT bars jumped 32% YoY to Rs. 1,322 cr mainly due to similar volume growth. EBITDA for FY26 expanded to 10% from 7.4% in FY25 and 4.4% in FY22.
On PAT of Rs. 80 cr, company’s net margin is 4.7%, and has not fluctuated much since FY23’s 2.8%, when steel prices were highly volatile. FY26 EPS stood at Rs.14.9, with net worth at Rs. 421 cr. Unlike larger peer A-One Steels, who IPO is also open, German Green’s margins are higher and more consistent, as TMT bars account for nearly 78% of topline, with lower-value products MS billets and sponge iron being less than 10%.
German Green’s working capital is also well managed at 1.1 month, despite holding inventory for over 2 months. Net debt to equity will drop to 0.3:1 post IPO.
Attractive Pricing
M cap of Rs. 1,047 cr and Enterprise Value of Rs. 1,260 cr implies a single-digit PE multiple 9x, on historic basis, which is among the lowest in steel sector. Even A-One Steel’s IPO is priced at ~20x.
German Green’s IPO pricing is also attractive for volume growth, consistent margin, and expansion underway, partly mitigating risk of a small topline with geographic concentration.
