German Green Steel & Power IPO opens today: Should you subscribe? Check reviews & latest GMP

The initial public offering (IPO) of German Green Steel & Power kicks-off for subscription on Friday, September 25. The metal products player is offering its shares in the range of Rs 132-139 apiece with a lot size of 107 equity shares and its multiples thereafter. The issue shall close for bidding on Tuesday, September 29.

Ahmedabad-based German Green Steel & Power is an iron and steel manufacturer primarily operating in the western region of India, with a strong presence in Gujarat and a focus on TMX Bars under brand 'German TMT' brand. It is predominantly conducted on a business-to-business basis with three major types of customers- distributors, dealers and institutional customers.

The Rs 304 crore of German Green Steel & Power includes a fresh share sale of Rs 290 crore and an offer-for-sale (OFS) of up to 10 lakh equity shares worth Rs 14 crore. The net proceeds from the issue shall be utilized towards funding the capital expenditure requirements, repayment of debt, and general corporate purposes.

Brokerages highlight improving earnings, operating performance, capacity expansion, vertical integration and an attractive valuation as key positives. However, cyclical steel prices, customer concentration, distributor dependence and moderating return ratios remain concerns. The business has a strong distribution network and brand recall, investors shall monitor earnings volatility and execution.

The issue is valued at FY26 EV/EBITDA multiple of 6.4 times based on post-issue capital, which is at a discount to its listed peers, said SBI Securities. "However, the company operates in the cyclical steel/TMT bars industry, which in particular has witnessed sharp volatility in prices recently. We assign a 'neutral' rating to the issue and would track the performance for a few quarters," it added.

Considering the company’s strong earnings growth, improving operating performance, planned capacity expansion and relatively attractive valuation at 9.3x FY26 earnings, the valuation provides a reasonable entry point, said BP Equities with a 'subscribe' rating for the issue.

Ahead of its IPO, German Green Steel & Power raised Rs 91.17 crore from six anchor investors as it allocated 65,58,991 equity shares at Rs 139 apiece. Its anchor book included names like Necta Bloom VCC, Lords Multigrwoth Fund, Compact Structure, Zeal Global Opportunities, Venue Investments VCC and Arnesta Global Opportunities Fund PCC.

German Green Steel's vertically integrated manufacturing setup, supported by captive power capacity, enables operational efficiencies, while its extensive distribution network in Gujarat and long-standing customer relationships provide a stable market presence. At the upper price band, the valuation appear fairly priced, said Anand Rathi Shares & Stock Brokers Ltd.

"However, high customer concentration and reliance on dealers/distributors could expose the Company to revenue volatility and customer attrition risks. Strong brand recall, supported by consistent product quality, along with a track record of financial growth, provides a favourable foundation for sustained business expansion," it said with a 'subscribe for long-term' rating.

German Green Steel & Power reported a net profit at Rs 79.89 crore with a total income of Rs 1,685.38 crore for the year ended on March 31, 2026. The company reported a net profit at Rs 59.94 crore with a revenue of Rs 1,517.21 crore for the financial year 2024-25. At the current valuations, it is commanding a total market capitalization close to 1,050 crore.

PAT margins are improving but RoNW has declined for three straight years as the equity base has grown faster than profit. High customer concentration and steel-sector cyclicality expose earnings to demand/pricing swings, said Swastika Investmart. "Attractive valuation is positive, but RoNW moderation and customer concentration warrant caution," it added with a 'neutral' rating.

German Green Steel & Power has reserved 50 per cent of the net issue for qualified institutional bidders (QIBs), while non-institutional investors and retail investors will get 15 per cent and 35 per cent of the allocation in the IPO. Last heard, German Green Steel  was commanding a grey market premium of Rs 29-30 apeice, suggesting a 21-22 per cent listing pop for the investors.

Systematix Corporate Services, Emkay Global Financial Services and Pantomath Capital Advisors are the book running lead managers of German Green Steel & Power IPO, while Bigshare Services is the registrar of the issue. Shares of the company shall be listed on both BSE Ltd and NSE Ltd on Monday, October 05.