German Green Steel and Power Files for Rs 450 Crore IPO...
01 Jul, 2025
German Green Steel and Power Ltd, a leading Gujarat-headquartered iron and steel producer, has submitted its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) as a prelude to its proposed initial public offering (IPO) of Rs 450 crore. The IPO will include a fresh issue of 450 crore shares as well as an offer of 20 lakh equity shares by promoters Inamulhaq Shamsulhaq Iraki and Abdulhaq Shamsulhaq Iraki.
The IPO will be done through book-building and allocation will be in a way that up to 50% will be allocated to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Bidders, and 35% to Retail Individual Bidders. The company can also do a pre-IPO placement of up to 20 percent of the fresh issue, which in case it is done will proportionately decrease the size of the fresh issue.
The proceeds from the fresh issue will be used by German Green Steel in several strategic programs. It has set aside ₹325.21 crore on capital expenditure to help in expanding its manufacturing plant at Samakhiyali in Kutch, Gujarat, and develop a hybrid wind and solar power project. Further, ₹55.01 crore will be spent on the repayment of some borrowings. The rest of the funds will be used for general corporate purposes.
German Green Steel and Power has shown strong financial growth over the years. The CAGR of revenue from operations was 12.53%, which increased to 1,129.78 crores in FY24 as compared to 892.25 crores in FY22. At the same time, EBITDA also rose by a CAGR of 43.04%, or 39.15 crore to 80.11 crore. Also, the EBITDA margin was increased to 7.09% from 4.39%, which indicates the improvement of operational efficiency and profitability.
German Green Steel and Power is a vertically integrated company that operates mainly in Gujarat and its product range includes TMT Bars, MS Billets and Sponge Iron. The flagship brand of the company, German TMT, has gained a substantial market share, especially in the TMT Bars segment.
The company does most of its business on a B2B level, supplying distributors, dealers, and institutional customers in industries like roadways, engineering services, and real estate. The firm uses a concentrated marketing approach, which targets corporate and institutional customers directly.
After the IPO, the equity shares of German Green Steel and Power will be listed on the BSE and NSE. Syestematix Corporate Services Ltd and Emkay Global Financial Services Ltd are the book-running lead managers of the IPO, and Bigshare Services Pvt Ltd is the registrar.
German Green Steel and Power will be in a position to advance its expansion strategies, invest more in renewable energy, and consolidate its market with the planned IPO. The emphasis of the company on sustainable growth and operational perfection makes it a major player in the changing steel industry in India.
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