India's steel sector is gearing up for a big fundraising push, with more than a dozen companies planning to raise over Rs 4,000 crore through initial public offerings (IPOs) in the next 12‑18 months.
New safeguard duty improves price visibility
Effective 21 April 2025, the government imposed a three‑year safeguard duty on selected flat‑steel imports. By raising the landed cost of foreign steel, the duty reduces price undercutting and gives domestic producers clearer pricing expectations. This move is expected to restore investor confidence and encourage companies with strong cost structures and balance sheets to approach the capital markets.
IPO pipeline worth more than Rs 4,000 crore
Several steel and allied firms are at various stages of listing:
- Mainboard candidates: A-One Steels India, Jindal Supreme (India), Steel Infra Solutions, Rajputana Stainless, German Green Steel & Power, Renny Strips, R.K. Steel Manufacturing, Karamtara Engineering.
- SME segment: R.P. Multimetals, Elec Steel Processing Industries, Kasturi Metal Composite – all have exchange approval and are waiting for better market conditions.
Collectively, these issuers are projected to raise over Rs 4,000 crore from their maiden public offerings.
Planned use of IPO proceeds
Companies say the funds will mainly support:
- Capacity expansion and entry into higher‑value steel segments.
- Strengthening vertical integration and reducing debt.
- Green‑steel projects to improve ESG credentials and boost long‑term valuation.
Investor outlook
Analysts note that while the safeguard duty offers short‑term support, sustainable valuations will still depend on solid earnings, strong balance sheets, and clear visibility beyond the duty period. Foreign broker Jefferies expects Indian steel volumes to grow 6‑9% CAGR in FY26‑28, aided by higher domestic prices and wider regional spreads.
Remember, this is perspective, not prediction. Do your own research before making any investment decisions.