Gujarat-based German Green Steel and Power Limited has fixed the price band for its initial public offering at ₹132-₹139 per equity share. The public issue will open for subscription on September 25 and close on September 29. Investors can bid for a minimum of 107 shares and in multiples thereof.
At the upper end of the price band, the company will raise ₹303.9 crore through the IPO. The anchor investor portion will open for bidding on September 24. At the upper end of the price band, German Green Steel and Power is expected to command a post-issue market capitalisation of around ₹1,047.35 crore.
The IPO, with a face value of ₹10 per equity share, comprises a fresh issue of up to ₹290 crore and an offer for sale of up to ₹13.9 crore. Of the total issue, 50% has been reserved for qualified institutional buyers , 15% for non-institutional investors and the remaining 35% for retail investors.
The company will use the proceeds from the fresh issue to fund capital expenditure for the expansion of its manufacturing facility at Samakhiali in Kutch, Gujarat, as well as a hybrid wind-solar power plant. A portion of the proceeds will also be used for the prepayment or repayment, in full or part, of certain outstanding borrowings, with the remaining funds earmarked for general corporate purposes.
German Green Steel and Power businessGerman Green Steel and Power is a vertically integrated iron and steel manufacturer primarily operating in western India, with a strong presence in Gujarat and a focus on its TMX Bars brand, according to a CARE report cited in the company's draft red herring prospectus .
Its product portfolio includes TMT bars, mild steel billets and sponge iron. The company manufactures TMT bars in sizes ranging from 8 mm to 40 mm and says it has developed "German TMT" as a popular TMT bar brand in Gujarat. The company has two manufacturing facilities in Gujarat - one at Samakhiali 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. The company plans to further reduce its dependence on grid electricity by setting up an additional hybrid wind-solar power plant.
German Green Steel and Power financialsGerman Green Steel and Power's revenue from operations grew at a compound annual growth rate of 12.53% from ₹892.25 crore in FY22 to ₹1,129.78 crore in FY24. Earnings before interest, taxes, depreciation and amortisation grew at a CAGR of 43.04% from ₹39.15 crore in FY22 to ₹80.11 crore in FY24.
The EBITDA margin improved from 4.39% in FY22 to 7.09% in FY24. Profit after tax increased at a CAGR of 10.43% from ₹34.16 crore in FY22 to ₹41.67 crore in FY24. For the nine-month period ended December 31, 2024, revenue from operations stood at ₹979.79 crore, while EBITDA and PAT stood at ₹68.18 crore and ₹32.07 crore, respectively.
Systematix Corporate Services, Emkay Global and Pantomath Capital are the book-running lead managers to the issue, while MUFG Intime India is the registrar. The equity shares are proposed to be listed on the BSE and NSE.