– By Dilip Davda
- The company is a vertically integrated iron and steel manufacturer primarily operating in western region.
- It has its own captive power plants based on coal and also renewable energy like Wind and Solar power generation plants.
- Its major earnings come from TMT Bar which accounts over 60% of its revenue.
- The company posted steady growth in its top and bottom lines.
- Based on its recent average financial data, the issue appears fully priced.
- Well-informed investors can park funds for medium to long term rewards.
ABOUT COMPANY:
German Green Steel & Power Ltd. (GGSPL) is a vertically integrated iron and steel manufacturer primarily operating in the western region of India, with a presence in Gujarat with a main focus on TMT Bars (Source: CARE Report). It has two (2) manufacturing facilities located in the state of Gujarat (“Manufacturing Facilities”): one located at Samakhiyali (the “Samakhiyali Facility”) which is vertically integrated, and the other is located at Viramgam (“Viramgam Facility”) which is operated through its Material Subsidiary- German TMT Private Limited (formerly known as German TMX Private Limited).
Steel scrap is one of its primary raw materials used in manufacturing process, enabling it to recycle ferrous material into finished steel products. As on the date of this Red Herring Prospectus, its product portfolio comprises mainly of TMT Bars, MS Billets and Sponge Iron.
Company’s TMT bar manufacturing capabilities range from 8 mm to 40 mm. As on date of this Red Herring Prospectus, the Company and its Material Subsidiary has received a Green Steel certificate from the National Institute of Secondary Steel Technology, Mandi Gobindgarh (India), pursuant to which its TMT bars were accorded a 4 star green steel rating and a 5 star green steel rating (Which is the highest green steel rating), respectively. Additionally, it has expanded product portfolio by entering the value-added steel products segment with the commencement of production of cut and bend bars and epoxy coated TMT bars.
As part of its continued focus on increasing the contribution of value-added and specialized steel products, GGSPL intends to further increase its presence in the production and sale of value-added products such as stainless steel round bars and cut and bend bars, which are pre-cut and shaped steel bars used in construction, epoxy coated TMT bars and corrosion resistant TMT bars. Through these initiatives, it seeks to broaden its product offerings, cater to evolving customer requirements and strengthen its position across the steel value chain.
The Company is a vertically integrated iron and steel manufacturer with a focus on TMT Bars. Company’s Samakhiyali Facility is a vertically integrated manufacturing facility where all stages of production starting from raw materials to finished steel products are carried out within the facility. Its Manufacturing Facilities are supported by its captive power plants. Its captive power plants include coal based power plant, waste heat recovery power plant and hybrid wind and solar plant. For FY26, it served 12 distributors, 148 dealers and 343 direct institutional customers. As of March 31, 2026, it had 1357 employees on its payroll, and additional 143 contractual workers.
ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route combo IPO worth Rs. 303.90 cr. (of approx. 21863309 equity shares at the upper cap). The IPO consists of fresh equity shares worth Rs. 290.00 cr. (approx. 20863309 equity shares at the upper cap) and an Offer for Sale (OFS) of 1000000 equity shares (worth Rs. 13.90 cr. at the upper cap). The company has announced a price band of Rs. 132 – Rs. 139 per equity shares of Rs. 10 each. The issue opens for subscription on September 25, 2026, and will close on September 29, 2026. The minimum application to be made is for 107 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE and NSE. The issue constitutes 29.02% of the post-IPO paid-up equity capital. From the net proceeds of the fresh equity issue, the company will utilize Rs. 226.33 cr. for capex on expansion of its manufacturing facility and hybrid solar and wind power plant, Rs. 7.70 cr. for repayment/prepayment of certain borrowings, and the rest for general corporate purposes.
The three joint Book Running Lead Managers (BRLMs) to this issue are Systematix Corporate Services Ltd., Emkay Global Financial Services Ltd., Pantomath Capital Advisors Pvt. Ltd., while Bigshare Services Pvt. Ltd. is the registrar to the issue. Systematix Shares and Stocks (India) Ltd., Emkay global financial Services Ltd., Asit C Metha Investment Intermediates Ltd. are syndicate members.
After issuing initial equity shares at par value, the company has issued/converted further equity shares in the price range of Rs. 20 – Rs. 1019 per share, between December 2008, and September 2025. The company also issued bonus shares in the ratio of 6 for 1 in March 2012, 1 for1 in March 2022, 5 for 1 in March 2025. The average cost of acquisition of shares by the promoters/selling stakeholders is Rs. 5.00, Rs. 15.28, and Rs. 45.92 per share.
Post-IPO, its current paid-up equity capital of Rs. 54.49 cr. (54485888 equity shares) will stand enhanced to Rs. 75.35 cr. (75349197 equity shares). Based on the upper cap of the price band, the company is looking for a market cap of Rs. 1047.35 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has (on a consolidated basis) posted a total income/net profit, of Rs. 1137.54 cr. / Rs. 41.67 cr. (FY24), Rs. 1517.21 cr. / Rs. 59.94 cr. (FY25), and Rs. 1685.38 cr. / Rs. 79.89 cr. (FY26). The company marked growth in its top and bottom lines for the reported fiscals.
Its contingent liabilities stood at Rs. 168.04 cr. as of March 31, 2026. Year-on-year surge in trade receivable raise concern.
For the last three fiscals, the company has posted an average EPS of Rs. 12.57 and an average RoNW of 20.17 %. The issue is priced at a P/BV of 1.79 based on its NAV of Rs. 77.76 as of March 31, 2026, and at a P/BV of 1.47 based on its post-IPO NAV of Rs. 94.72 per share at the upper cap.
If we attribute FY26 super earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at P/E of 13.11. Based on FY25 earnings, the P/E stands at 17.46. The issue appears fully priced based on its recent average performance.
For the reported periods, the company has reported PAT Margins of 3.69% (FY24), 3.98% (FY25), 4.76% (FY26), and RoCE margins of 18.62%, 15.91%, 19.31%, respectively, for the referred periods.
DIVIDEND POLICY:
The company has not paid any dividends for the reported periods of the offer document. It has already adopted a dividend policy in May 2025, based on its financial performance and future prospects.
COMPARISON WITH LISTED PEERS:
As per the offer document, the company has shown Beekay Steel, Gallant Ispat, Kamdhenu Ltd., MSP Steel, VMS TMT., as its listed peers. They are currently trading at a P/E of 18.4, 30.8, 13.4, 14.5, and 13.5 (as of September 23, 2026). However, they are not truly comparable on an apple-to-apple basis. This comparison appears to be an eyewash.
MERCHANT BANKER’S TRACK RECORD:
The three BRLMs associated with this issue has handled 22 IPOs in the last three fiscals and out of which 9 IPOs closed below the issue price on listing date.
CONCLUSION:
GGSPL is a vertically integrated iron and steel manufacturer primarily operating in western region. It has its own captive power plants based on coal and also renewable energy like Wind and Solar power generation plants. Its major earnings come from TMT Bar which accounts over 60% of its revenue. The company posted steady growth in its top and bottom lines. Based on its recent average financial data, the issue appears fully priced. Well-informed investors can park funds for medium to long term rewards.
Review By Dilip Davda on August, 2026
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
