IPO closes on 29 Sep'26
German Green Steel and Power Limited
Minimum Investment
₹ 14,873 / 107 shares
Our Verdict:
Neutral
- Revenue and PAT have both grown consistently — Revenue from ₹1,137.54cr (FY24) to ₹1,685.38cr (FY26), PAT from ₹41.67cr to ₹79.89cr — with a healthy 18.86% RoE and moderate leverage (debt-equity of 0.79x), a cleaner trend than many recent steel-sector IPOs in this series.
- The company's captive power mix (60 MW across thermal, waste-heat recovery and renewables) brings power costs down to roughly ₹5/unit versus ₹9–9.50 from the grid, which is a genuine structural cost advantage for a business where electricity is the largest expense after raw materials.
- Customer concentration is notable — the top 10 customers account for more than 61% of revenue — and as a steel producer the business remains exposed to cyclical price swings in TMT bars, billets and sponge iron regardless of the captive-power cost edge.
About the company
Founded in
9 Jul'08
Managing director
Abdulhaq Shamsulhaq Iraki
- German Green Steel and Power Limited is an Ahmedabad, Gujarat-based vertically integrated steel manufacturer producing TMT bars, MS billets and sponge iron from its Samakhiyali and Viramgam facilities.
- The company operates 60 MW of captive power capacity across thermal, waste-heat recovery and renewable sources, bringing its power costs down to approximately ₹5 per unit versus ₹9–9.50 from the grid; an additional 8 MW renewable project is planned post-IPO.
- Sponge iron capacity utilization runs at 97–98%, with billet capacity of 3.5 lakh tonnes and TMT bar capacity of 3.01 lakh tonnes, sold through a hybrid model of institutional buyers and a dealer-distributor network primarily in western India.
- Promoters: Inamulhaq Shamsulhaq Iraki (Chairman), Abdulhaq Shamsulhaq Iraki (Managing Director) and Ibrarulhaq Inamulhaq Iraki
STRENGTHS
- Captive Power Cost Advantage: 60 MW of captive generation across thermal, waste-heat recovery and renewable sources brings power costs to ~₹5/unit versus ~₹9–9.50 from the grid, a structural edge given electricity is the largest cost after raw materials.
- Vertically Integrated Production: Manufactures sponge iron, MS billets and TMT bars in-house across its Samakhiyali and Viramgam facilities in Gujarat.
- High Capacity Utilization: Sponge iron capacity utilization of 97–98% indicates efficient use of installed production capacity.
- Consistent Revenue and Profit Growth: Revenue grew from ₹1,137.54 crore (FY24) to ₹1,685.38 crore (FY26), while PAT grew from ₹41.67 crore to ₹79.89 crore over the same period.
- Moderate Leverage with Healthy Returns: Debt-to-equity of 0.79x alongside an RoE of 18.86% reflects a reasonably balanced capital structure for a steel manufacturer.
RISK FACTORS
- Customer Concentration: Top 10 customers account for more than 61% of revenue, despite the company's hybrid institutional-plus-dealer distribution model.
- § Steel Industry Cyclicality: As a producer of TMT bars, billets and sponge iron, the business is exposed to cyclical price volatility in steel products that can pressure margins independent of its own cost structure.
- Grid Power Cost Exposure: While captive generation covers a large share of power needs, any gap versus captive capacity still exposes the company to grid electricity price fluctuations.
- Pre-IPO Placement at a Discount to Band: Pre-IPO shares were placed at ₹270 per share in September 2025, and promoter selling shareholders' weighted average cost of acquisition (₹15.28 and ₹5.00 per share) sits well below the ₹132–₹139 price band, a gap new investors should be aware of.
- First Public Issue — No Prior Trading History: This is the company's first public issue, so there is no existing market for the shares and no trading history to gauge post-listing price behavior.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ 304 crore
Fresh Issue
₹ 290 crore
OFS
₹ 14 crore
Price range
₹ 132 - 139
Lot size
107 shares
Issue Objective
- Net proceeds from the Fresh Issue of ₹290 crore are proposed to be used per the Objects of the Issue set out in the RHP. The Offer for Sale of ₹14 crore, sold by promoter selling shareholders Inamulhaq Shamsulhaq Iraki and Abdulhaq Shamsulhaq Iraki, accrues to them, not the company.
Dates
Bidding open
25 Sep'26
Bidding close
29 Sep'26
Allotment date
30 Sep'26
Refund date
1 Oct'26
Listing
5 Oct'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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