German Green Steel and Power Limited’s IPO opened on September 25 and closes today, September 29. It is a book-build issue of Rs. 303.90 crore, made up of a fresh issue of 2.09 crore shares worth Rs. 290 crore and an offer for sale of 10 lakh shares worth Rs. 13.90 crore. The price band is Rs. 132 to Rs. 139 per share. Allotment is expected on September 30, and shares should list on both BSE and NSE on October 5.
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What It Costs to Apply
One lot is 107 shares, which works out to Rs. 14,873 at the upper band. That is the minimum for a retail investor. The retail ceiling is 13 lots (1,391 shares), or Rs. 1,93,349.
Small HNI applications start at 14 lots (Rs. 2.08 lakh) and go up to 67 lots (Rs. 9.96 lakh). Big HNIs begin at 68 lots, a little over Rs. 10.11 lakh. Half the issue is reserved for QIBs, 15% for non-institutional investors and 35% for retail.
Demand So Far
The book stood at 5.39 times at the end of day three, up from 1.82 times on day one. That is decent but not dramatic, and mainboard issues usually see the bulk of institutional and HNI bids arrive on the last day, so this number will likely look different by tonight.
Anchors have already shown their hand. The company raised Rs. 91.17 crore from anchor investors on September 24. Half of those shares are locked in until October 30 and the rest until December 29.
Among the brokerages tracked by Chittorgarh, six rate the issue “subscribe” and three are neutral. None say avoid.
The Grey Market
According to Investorgain’s latest reading, from this morning, the GMP is at Rs. 24.5. Against the Rs. 139 upper band, that implies a listing price near Rs. 163.5, a gain of roughly 17.6%.
The premium has been steady rather than exciting. It began at Rs. 15 on September 22, moved into the high twenties once the anchor book was announced, and has stayed between about Rs. 23.5 and Rs. 31.5 since bidding began. It slipped a little over the weekend as subscription numbers came in on the softer side. Grey market premiums are unofficial and can vanish quickly, so treat this as a mood reading and nothing more.
Inside the Business
Incorporated in 2008 and based in Ahmedabad, German Green Steel makes TMT bars, MS billets and sponge iron. Its “German TMT” brand has strong recall in Gujarat, and most sales go through distributors and dealers, who then supply builders and contractors. Institutional buyers are the third customer group.
Production happens at two sites. The Samakhiyali facility in Kutch is vertically integrated and sits close to Gujarat’s ports. The Viramgam plant is run through a subsidiary, German TMX Private Limited. At the end of March 2026 the group had 1,357 employees and another 143 contract workers.
The expansion plan is where the IPO gets its weight. At Samakhiyali, the company wants to lift:
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Sponge iron capacity from 66,000 to about 1,48,500 MTPA
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MS billet capacity from 2,14,500 to 4,12,500 TPA
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TMT bar capacity from 1,81,500 to 3,46,500 MTPA
That is roughly 125%, 92% and 91% more capacity across the three stages. Of the fresh money, Rs. 226.33 crore is earmarked for that capex and for a hybrid wind and solar power plant. Another Rs. 7.70 crore goes to repaying borrowings, and the balance is for general corporate purposes.
Reading the Numbers
For FY26, total income was Rs. 1,685.38 crore, about 11% higher than the Rs. 1,517.21 crore the year before. Profit after tax rose around 33% to Rs. 79.89 crore, and EBITDA jumped from Rs. 116.81 crore to Rs. 166.96 crore. The EBITDA margin came in at 9.94%.
Revenue growth deserves a second look. Income grew about 33% between FY24 and FY25, so the FY26 pace is a clear slowdown. Profit grew faster than sales this year, which usually means better cost control or a richer product mix, but steel margins can swing back just as easily.
Return ratios are healthy without being spectacular: ROE of 18.86%, ROCE of 19.31%, and a debt-to-equity ratio of 0.79. Borrowings edged down to Rs. 334.37 crore from Rs. 347.86 crore, while net worth climbed to Rs. 421.55 crore.
On valuation, the upper band gives a P/E of about 9.48 times on pre-issue earnings (EPS of Rs. 14.66). After the new shares are counted, that moves to 13.11 times. Market capitalization at the top of the band is Rs. 1,047.35 crore, and the price-to-book multiple is 1.79. Promoters Inamullaq Shamsulhaq Iraki and Abdulhaq Shamsulhaq Iraki hold 96.63% today and will drop to 68.54% after the issue.
Where the Story Could Wobble
Two things stand out. The first is cyclicality. Steel producers earn what the spread between raw material costs and selling prices allows, and that spread is not in the company’s hands. The captive power and vertical integration help, but they do not remove the swings.
The second is timing. Adding close to 90% more capacity while revenue growth has cooled to 11% means the company is building ahead of demand. If construction activity in Gujarat and nearby markets stays firm, the bet pays off. If it softens, the new plant will be running below capacity while carrying fresh depreciation and interest costs. Post-issue EPS also falls to Rs. 10.60 because the share count rises by roughly 38%, so new earnings need to arrive quickly to justify the dilution.
One data point to keep in perspective: the company did not disclose peer multiples in the material reviewed here, so the “reasonable valuation” view rests on absolute ratios, not a like-for-like comparison. Check the peer table in the RHP before deciding.
The Bottom Line
German Green Steel offers a profitable, growing regional steel maker at under 10 times trailing earnings, with a clear use of funds and no heavy promoter selling. Brokers lean positive and the grey market agrees. The cost is exposure to a cyclical industry and an expansion that must be filled with orders.
Whether Rs. 139 turns out to be a fair price depends less on today’s final subscription figure than on how quickly the new capacity finds buyers. Listing gains, if they come, will be a bonus; the case for holding rests on that execution.