The Bombay Coated and Special Steels IPO opens on October 29, and this one is pure industrial plumbing: a company that takes steel coils and cuts them to size for appliance makers. The Mumbai-based steel processor wants ₹183.1 crore at a price band of ₹78 to ₹82 a share, and every rupee of it is a fresh issue. Bidding closes on November 2, BusinessLine reports, citing PTI.
The company’s red herring prospectus, dated October 21, puts the anchor bidding date at October 28 and names BSE and NSE as the exchanges. The RHP also appears on BSE’s offer documents list.
In this article
Bombay Coated and Special Steels IPO: the basic terms
According to Business Today, the minimum bid is 182 shares of face value ₹10, so one lot at ₹82 costs ₹14,924. Not more than 50% of the issue goes to qualified institutional buyers, at least 15% to non-institutional investors and at least 35% to retail investors. Smart Horizon Capital Advisors is the sole book-running lead manager and KFin Technologies is the registrar.
Since there is no offer for sale, no promoter is cashing out here. By our arithmetic, the issue adds about 2.23 crore new shares at the top of the band to the 4.05 crore already outstanding. That puts the post-issue value at roughly ₹515 crore. This is our estimate, not a number from the company.
Where the money goes
Debt is the main story. ₹125 crore will repay or prepay borrowings and ₹15.7 crore will pay for equipment the company now uses under lease from Siemens Financial Services. The rest is for general corporate purposes. The RHP shows total borrowings of ₹273.7 crore at June 30, 2026, against equity of ₹136.6 crore, a debt-to-equity ratio of 2. So the repayment slice equals about 46% of that debt pile.
Why that matters: finance costs in FY26 were ₹35.7 crore, against a pre-tax profit of ₹40.8 crore. Cut the interest bill and more of each rupee of sales reaches the bottom line.
What the business looks like
Incorporated in 2019, the company buys steel coils and slits, cuts, shears and embosses them for appliance and engineering makers. It runs plants at Wada and Bhiwandi in Maharashtra, Ghiloth in Rajasthan and Sri City in Andhra Pradesh, with installed processing capacity of 1,23,153 tonnes a year as of June 30, 2026.
Restated figures in the RHP show revenue from operations of ₹1,266.8 crore in FY26, up from ₹1,055.7 crore in FY25 and ₹755.3 crore in FY24. Net profit was ₹30.5 crore in FY26, ₹28.7 crore in FY25 and ₹21.1 crore in FY24. For the June 2026 quarter, it earned ₹15.1 crore on revenue of ₹397.1 crore.
When we run these numbers ourselves, a few things stand out:
- FY26 revenue grew about 20% over FY25, but profit grew only about 6.5%.
- The FY26 net margin is thin at about 2.4%. The June quarter improved to about 3.8%.
- At about ₹515 crore, the upper band works out to roughly 16.9 times FY26 profit.
The concentration risks we would read first
Two lines in the risk factors deserve attention. The company has been an authorised service partner of JSW Steel Coated Products and/or its holding company since 2021, and it sourced 86.65% of its steel coil needs from that group in FY26. On the selling side, its largest customer, Amber Enterprises India, made up 20.4% of FY26 revenue, and the top ten customers together made up 71.3%. A thin-margin processor tied to one supplier and a handful of buyers has limited room for error.
For the other issues opening this week, see our IPOs this week round-up. Our explainer on the objects of the issue shows how to read a debt-repayment IPO, and the guide to IPO investing in India covers the basics.
Disclaimer: This article is for information and education only and is not investment advice. Please consult a SEBI-registered adviser before making investment decisions.
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