An iron and steel manufacturer company, German Green has fixed a price band of the price band in the range of Rs 132-139 per share with a face value of Rs 10 each for its Rs 303.90 crore IPO, comprising of fresh issue of 2.09 crore shares aggregating to Rs 290.00 crore and offer for sale of 10.00 lakh shares aggregating to Rs 13.90 crore.
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Anand Rathi Report
German Green Steel and Power Ltd. IPO: 10 Key Things to Know Before You Subscribe
1. IPO dates
German Green Steel and Power's IPO opens for subscription today, September 25, 2026 and closes on September 29, 2026.
2. IPO size
German Green Steel IPO is a book build issue of Rs 303.90 crore, comprising of fresh issue of 2.09 crore shares aggregating to Rs 290.00 crore and offer for sale of 10.00 lakh shares aggregating to Rs 13.90 crore.
3. Price band
The company has fixed a price band of the price band in the range of Rs 132-139 per share with a face value of Rs 10 each.
4. Minimum investment and lot size
Investors can bid for a minimum of 107 shares and in multiples thereof. At the upper price band investors would require a minimum investment of Rs 14,873.
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5. Objects of the issue
The company plans to utilise the fresh issue proceeds for:
- Funding capital expenditure at its Samakhiyali manufacturing facility in Gujarat.
- Investment in hybrid wind and solar power plants.
- Prepayment or repayment of certain borrowings.
- General corporate purposes.
6. About the company
Incorporated in 2008, German Green Steel & Power is a vertically integrated steel manufacturer primarily focused on:
TMT Bars
MS Billets
Sponge Iron
The company has manufacturing facilities in Gujarat and operates under the"German TMT" brand. It is expanding capacity and increasing its presence in value-added steel products such as epoxy-coated TMT bars, corrosion-resistant TMT bars, stainless steel round bars, and cut-and-bend bars.
7. Financial performance
- Revenue from operations increased to Rs 1,679 crore in FY26 from Rs 1,507.6 crore in FY25 and Rs 1,129.8 crore in FY24.
- EBITDA rose to Rs 167 crore in FY26 from Rs 116.8 crore in FY25.
- PAT jumped to Rs 79.9 crore in FY26 from Rs 59.9 crore in FY25 and Rs 41.7 crore in FY24.
8. Growth Strategies
Key growth drivers include:
- Expanding sponge iron, billet and TMT bar capacities.
- Increasing presence in Gujarat and neighboring states including Rajasthan, Maharashtra and Madhya Pradesh.
- Entry into contract manufacturing through an agreement with JSW One Distribution.
- Greater focus on value-added steel products.
- Continued investment in renewable energy and cost optimization initiatives.
Key risks
- High customer concentration, with the top 10 customers contributing over 50% of revenue.
- Dependence on dealers and distributors.
- Volatility in steel and raw material prices.
- Dependence on third-party suppliers for raw materials.
- Large capital expenditure and working capital requirements.
- Regulatory approvals and licensing risks.
9. Peer Comparison
The other listed peer in the sector are Kamdhenu, Beekay Steel, Gallant Ispat, MSP Steel and Power, VMS TMT
10. Should You Subscribe?
At the upper price band the company is valued at 13.1x FY26 P/E and 8.2x FY26 EV/EBITDA, implying a market capitalization of ₹10,474 million,
making the valuation appear fairly priced. However we believe, high customer concentration and reliance on dealers/distributors could expose
the Company to revenue volatility and customer attrition risks.
According to Anand Rathi, the valuation appears fairly priced. The brokerage has assigned a"Subscribe for Long Term" rating.
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