IPO will list on 5 Nov'26
Bombay Coated and Special Steels Limited
Minimum Investment
₹ 14,924 / 182 shares
Our Verdict:
Neutral
- Growth has been fast but margins are razor-thin: revenue rose from ₹755.26 crore (FY24) to ₹1,266.82 crore (FY26), about 30% a year, and PAT from ₹21.14 crore to ₹30.54 crore, about 20% a year, yet the FY26 PAT margin was only 2.4% (EBITDA margin ~6.8%). As a steel processor that largely passes through coil costs, profit per rupee of sales has not widened with scale, although Q1 FY27 improved to a 3.8% PAT margin.
- The valuation is modest on headline numbers but reflects the risk: the post-issue market value of ~₹515 crore is ~17x FY26 earnings and ~2.7x pre-issue book value. For a low-margin, leveraged processor with one dominant supplier, the price leaves limited room for a slip in volumes or spreads.
- Leverage and dependence are the core risks: borrowings of ₹338.45 crore were ~2.8x net worth of ₹121.58 crore in FY26 (~2.0x by June 2026), ~85% of coil comes from a single supplier, the top 10 customers were ~73.5% of revenue and appliances ~90% of product revenue. About ₹125 crore of the proceeds goes to repaying borrowings, which helps, but the business model stays concentrated.
About the company
Founded in
1 Dec'19
Managing director
Shashi Mohan Singh Rawat
- Bombay Coated and Special Steels Limited is a steel processing centre that converts steel coils into processed products through slitting, cut-to-length, shearing and embossing.
- Its customers are mainly OEMs and ODMs in home and commercial appliances and general engineering, served from four facilities at Wada and Bhiwandi (Maharashtra), Ghiloth (Rajasthan) and Sri City (Andhra Pradesh).
- Revenue from operations grew from ₹755.26 crore (FY24) to ₹1,266.82 crore (FY26) and PAT from ₹21.14 crore to ₹30.54 crore, with FY26 adjusted EBITDA of ₹86.09 crore.
- Promoters: Vijaykumar Himatrai Gupta, Nitin Vijaykumar Gupta (Managing Director) and Bhawna Nitin Gupta, who hold 97.78% before the issue
STRENGTHS
- Integrated Processing Capability: Slitting, cut-to-length, shearing and embossing across four facilities in Maharashtra, Rajasthan and Andhra Pradesh.
- Established Supplier Relationship: JSW Steel Coated Products and its holding company supplied about 85% of coil requirements in the latest stub period.
- Established Customer Base: Customers include Haier Appliances India, IFB Refrigeration, Dixon Electro Manufacturing and Amber Enterprises India.
- Strong Growth Record: Revenue grew about 30% a year and PAT about 20% a year between FY24 and FY26.
- Improving Balance Sheet: Net worth rose from ₹54.36 crore (FY24) to ₹136.62 crore (June 2026), and borrowings-to-net-worth fell from ~4.3x to ~2.0x.
RISK FACTORS
- Single Supplier Dependence: About 85% of coil requirements came from JSW Steel Coated Products and its holding company in the latest stub period.
- § Customer and Sector Concentration: The top 10 customers were ~73.5% of revenue and home and commercial appliances ~90% of product revenue.
- High Debt and Thin Margins: Borrowings were ~2.8x net worth in FY26, and raw material cost is most of total expenses, so steel price swings hit margins.
- Capacity and Geographic Concentration: Capacity is underutilised, which raises production cost, and Maharashtra, Gujarat and Haryana contribute over half of revenue.
- Compliance and Litigation: There were past discrepancies in RoC filings and Companies Act non-compliances, and legal proceedings are pending against the company, promoters and directors.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ Up to ₹183 crore
Fresh Issue
₹ Up to ₹183 crore
OFS
₹ Nil
Price range
₹ 78 - 82
Lot size
182 shares
Issue Objective
- Fresh Issue of up to ₹183.06 crore: ₹125.00 crore to repay or prepay certain borrowings, ₹15.77 crore to acquire capital equipment currently under Siemens Financial Services lease arrangements, and the balance for general corporate purposes. The issue is entirely fresh, with no offer for sale.
Dates
Bidding open
29 Oct'26
Bidding close
2 Nov'26
Allotment date
3 Nov'26
Refund date
4 Nov'26
Listing
5 Nov'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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