IPO Overview
Incorporated in July 2008 (originally as Haq Enterprises Private Limited), German Green Steel and Power Limited is a Gujarat-based, vertically integrated iron and steel manufacturer operating primarily in western India. The company manufactures thermo-mechanically treated (TMT) bars under its well-known “German TMT” brand, along with mild steel (MS) billets and sponge iron. The company’s TMT bar product range is available in sizes from 8 mm to 40 mm, catering to various construction and infrastructure requirements. The company has two manufacturing facilities in Gujarat — one at Samakhiyali and the other at Viramgam, which is operated through its material subsidiary, German TMX Private Limited. As of December 31, 2024, around 67.72% of German Green Steel and Power’s energy requirements were met through its captive power and renewable energy plants.
German Green Steel and Power Limited is bringing a Book Built Mainboard IPO worth ₹303.90 crore. It is a mix of a fresh issue of shares worth ₹290 crore and an Offer for Sale (OFS) worth ₹13.90 crore. The price band of the issue is set between ₹132 and ₹139 per share and the lot size for an application is 107 shares. The minimum amount of investment required by an individual investor is ₹14,873. The IPO will be open from September 25 to 29, 2026, on the BSE and NSE platforms, with a tentative listing date fixed as October 5, 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – Mainboard |
| Listing Exchange | BSE & NSE |
| Anchor Investor Date | 24 September 2026 |
| IPO Open Date | 25 September 2026 |
| IPO Close Date | 29 September 2026 |
| Allotment Date | 30 September 2026 (Expected) |
| Refund Initiation | 01 October 2026 |
| Credit to Demat | 01 October 2026 |
| Listing Date | 05 October 2026 (Tentative) |
| Price Band | ₹132 – ₹139 per share |
| Face Value | ₹10 per share |
| Lot Size | 107 shares |
| Minimum Investment (Retail) | ₹14,873 (1 lot = 107 shares) |
| Issue Size | ₹303.90 crore |
| Fresh Issue | ₹290 crore |
| Offer For Sale (OFS) | ₹13.90 crore |
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% |
| Non-Institutional Investors (NII/HNI) | ~15% |
| Retail Individual Investors (RII) | ~35% |
OFS / Selling Shareholders
The IPO is a fresh issue of ₹290 crore and an Offer for Sale (OFS) of ₹13.90 crore. The OFS money goes to the promoter selling shareholders. The promoters are partially monetizing their stake, though they continue to hold a significant position post-IPO. Promoter holding will decline from 96.63% before the IPO to 68.54% after the issue. Public ownership will increase to 31.46%.
Objects of the Issue (Fund Utilization)
The company proposes to deploy the gross proceeds from the fresh issue towards the following capital projects: funding CAPEX requirements for the Samakhiyali manufacturing facility and hybrid wind-solar plant — ₹226.33 crore; prepayment or repayment, in full or in part, of certain outstanding borrowings — ₹7.70 crore. The remaining proceeds will be used for general corporate purposes.
- CAPEX for Samakhiyali manufacturing facility expansion & hybrid wind-solar power plant — ₹226.33 crore
- Repayment / prepayment of outstanding borrowings — ₹7.70 crore
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Managers: Systematix Corporate Services Ltd., Emkay Global Financial Services Ltd., and Pantomath Capital Advisors Pvt. Ltd.
- Registrar to the Issue: Bigshare Services Pvt. Ltd.
Promoters & Management
The company’s promoters are Inamulhaq Shamsulhaq Iraki, Abdulhaq Shamsulhaq Iraki, and Ibrarulhaq Inamulhaq Iraki. The promoter family brings decades of experience in the steel manufacturing and distribution business in Gujarat, and has built the “German TMT” brand into a well-recognized name in the region’s construction materials market.
Company Details
German Green Steel and Power Limited manufactures TMT Bars, MS Billets, and Sponge Iron. The business primarily follows a B2B model, serving distributors, dealers, and institutional customers who further supply products to contractors, builders, and other end-users in the construction sector. The “German TMT” brand has built a strong market presence in Gujarat.
Sectors Served:
- Residential & Commercial Construction
- Infrastructure & Road Projects
- Industrial Construction
Key Products:
- TMT Bars — 8 mm to 40 mm (primary revenue driver)
- MS Billets (intermediate product)
- Sponge Iron (upstream raw material)
Key Capabilities:
- Fully integrated processing chain spanning sponge iron, intermediate billets, re-rolled bars, and captive thermal energy — providing clear defensibility against raw steel margin cyclicality.
- Combined TMT Bar capacity utilisation jumped from 72% in FY25 to 88% in FY26 — the key driver behind margin improvement.
- Around 67.72% of energy requirements met through captive power and renewable energy plants as of December 31, 2024.
Manufacturing Facilities:
- Samakhiyali, Kutch, Gujarat — vertically integrated main facility
- Viramgam, Gujarat — operated through material subsidiary German TMX Private Limited
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY23 | ₹184.81 | ₹32.10 |
| FY24 | ₹206.45 | ₹34.44 |
| FY25 | ₹322.58 | ₹28.13 |
| FY26 | ₹1,685.38 | ₹79.89 |
| 9M FY26 (Dec 2025) | ₹236.50 | ₹38.69 |
Key Financial Metrics
- Revenue grew by 11% to ₹1,685.38 crore in FY26 and PAT rose by 33%. Net worth expanded from ₹292.55 crore to ₹421.55 crore during FY26.
- Return on Net Worth (RONW): 18.86% in FY26
- Revenue from operations grew at a CAGR of 22% between FY24 and FY26, while EBITDA and PAT grew at a higher rate.
- Post-issue P/E: 13.11x — appears reasonable relative to steel sector peers.
- At the upper price band of ₹139, German Green Steel & Power is trading at a P/E of 13x, while its peers are trading at an average P/E of 17x.
- Post-issue Market Cap: ~₹1,047.35 crore
Company Strengths
- Fully integrated processing chain spanning sponge iron, intermediate billets, re-rolled bars, and captive thermal energy — providing defensibility against raw steel margin cyclicality.
- TMT Bars have grown from 63% of revenue in FY24 to nearly 79% in FY26 — reflecting a focused product mix shift towards higher-margin finished goods.
- Extensive distribution network in Gujarat with long-term customer relationships and strong “German TMT” brand recall driven by quality products.
- Dealer revenue has grown nearly ten-fold since FY24 to ₹351 crore — broadening the customer base beyond distributors and institutional buyers.
- Directing ₹226.33 crore of fresh equity towards expanding plant capacity at Samakhiyali and developing a dedicated hybrid wind and solar power generation installation will increase production capacity while reducing electricity overhead.
- Attractive valuation at P/E of ~13x against sector average of ~17x, offering a potential upside buffer at listing.
Key Risks & Challenges
- Geographic concentration: The business is concentrated in Gujarat, with the state contributing 98% of FY26 revenue — making the company highly vulnerable to any regional economic slowdown or policy changes.
- The company derives a majority portion (50.62% in FY26) of revenue from operations from its top 10 customers, with the single largest customer contributing 10.67% of revenue — indicating customer concentration risk.
- PAT inconsistency: Despite revenue growth, PAT dipped from ₹34.44 crore in FY24 to ₹28.13 crore in FY25 before recovering sharply in FY26 — raising questions about earnings consistency.
- Steel is a highly cyclical industry prone to raw material price volatility (iron ore, coking coal, scrap), which can compress margins rapidly.
- Large CAPEX of ₹226.33 crore for plant expansion introduces execution risk — delays or cost overruns could impact profitability timelines.
- Listing performance will depend on GMP, subscription response, institutional participation, and overall market sentiment — making it suitable primarily for investors comfortable with cyclical steel businesses, execution risk, and moderate leverage.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
