German Green Steel & Power IPO

About German Green Steel and Power IPO

The IPO of German Green Steel and Power comprise a fresh issue and an offer for sale. The fresh issue aggregates up to ₹450 crores while the offer for sale aggregates up to 20,00,000 equity shares. The total issue aggregates up to TBA. It’s a 100% book-built issue.

German Green Steel and Power IPO opens on [XX] and closes on [YY]. The allotment of shares will take place on [TBA]. The credit of shares to the demat account will take place on [TBA]. The initiation of refunds will take place on [TBA]. The listing of shares will take place on [TBA].

German Green Steel and Power is a vertically integrated iron and steel manufacturer primarily operating in the western region of India, with a strong presence in Gujarat with a primary focus on TMX bars. The company has two manufacturing facilities located in Gujarat.

Objectives of German Green Steel and Power IPO

The company proposes to utilise the IPO proceeds for:

• Funding the capital expenditure requirements of the company towards expansion of its manufacturing facility and hybrid wind and solar power plant
  
• Prepayment or re-payment, in full or in part, of certain outstanding borrowings
  
• General corporate purposes
  

Industry Outlook

Steel is a vital and versatile material that greatly enhances convenience. As a fundamental component in various manufacturing processes, it serves as the cornerstone for national economic growth. The steel sector is frequently regarded as a barometer of economic advancement due to its essential contributions to infrastructure and industrial expansion within a nation.

The domestic crude steel production has grown at a CAGR of 6.7% in the past six years to reach 151 MT in FY25 from 109 MT in FY20. Large steel manufacturers’ capacity utilisation has been 81% in FY24 and most players have announced the expansion of crude steel capacities.

In the last 6 years, the finished steel production has grown at a CAGR of 7.2% to 145 MT in FY25 from 103 MT in FY20. The growth in production has been supported by the rising domestic steel consumption due to increasing economic activities in the country. This is further supplemented by increased infrastructure and construction spending by the government and a rise in automobile and consumer durable demand, among others.

German Green Steel & Power Company Information

German Green Steel and Power is a vertically integrated iron and steel manufacturer primarily operating in the western region of India, with a strong presence in Gujarat with a primary focus on TMX bars.

It has two manufacturing facilities located in the state of Gujarat - one located at Samakhiyali (the “Samakhiyali facility”) which is vertically integrated, and the other is located at Viramgam (“Viramgam facility”) which is operated through its material subsidiary - German TMX.

Strengths of German Green Steel and Power

• Vertically integrated manufacturing setup which includes captive power capacity
• Extensive distribution network in Gujarat with long-term customer relationships
• Experienced promoters supported by a strong management and execution team
• Strong brand recall driven by quality products
• Track record of growth in financial performance

Risks of German Green Steel and Power

• Loss of any of top 10 customers or a reduction in purchases by any of them could adversely affect business
• A termination of distribution arrangements could adversely affect financial condition
• Disruption to the timely and adequate supply of materials, or volatility in the prices of materials may adversely impact business
• Decrease in TMT bar prices may have a material adverse effect on business
• Inability to compete effectively may have a material adverse impact on business
• Significant social, political, economic or seasonal disruption, natural calamities or civil disruptions in Gujarat could have an adverse effect on business
• Inability to comply with repayment and other covenants in financing agreements could adversely affect business and financial condition
• Contingent liabilities could materially and adversely affect business
• Shortage of essential utilities could disrupt manufacturing operations and increase production costs, which could adversely affect results of operations
• Inability to accurately forecast demand for products may have an adverse effect on Business

Anchor Investor Bidding Date

TBA

IPO Registrar and Book Running Lead Managers

• IPO Registrar: Bigshare Services
• Book Running Lead Managers: Systematix Corporate Services, Emkay Global Financial Services

German Green Steel & Power Business Model

As on the date of the company’s DRHP, its product portfolio consisted mainly of TMT bars, MS billets and sponge iron. Its TMT bar manufacturing capabilities range from 8 mm to 40 mm.

German Green Steel & Power Growth Trajectory

German Green’s focus on operational and functional excellence have contributed to its track record of healthy financial performance. The company’s revenue from operations has grown at a CAGR of 12.53% from ₹892.2484 crores in fiscal 2022 to ₹1129.78.18 crores in fiscal 2024.

The company’s EBITDA has grown at a CAGR of 43.04% from ₹39.1523 crores in fiscal 2022 to ₹80.1096 crores in fiscal 2024 with EBITDA margin improving from 4.39% in fiscal 2022 to 7.09% in fiscal 2024 showcasing strong operating performance.

German Green Steel & Power Market Position

German Green Steel has a strong presence in Gujarat with two manufacturing facilities - one located at Samakhiyali which is vertically integrated, and the other is located at Viramgam. The Viramgam facility is operated through its material subsidiary- German TMX.

How to Check Allotment Status of German Green Steel and Power IPO?

1. Visit the Registrar’s Website

• Visit the official website of Bigshare Services
  
• Choose IPO Allotment Status from ‘Services’
  
• Click on any one of the servers
  
• Choose ‘Company Name’ from dropdown
  
• Enter either your application number, CAF number or beneficiary ID
  

2. Check on the National Stock Exchange Website

The National Stock Exchange (NSE) website has an IPO bid verification module. You can use it to check the allotment status of German Green Steel and Power IPO. Go to the NSE website and find the ‘Invest’ tab. Click on ‘Verify IPO Bids’ under ‘Resources & Tools’.

On the NSE IPO bid verification page, enter:

• Company name from dropdown
  
• Application number
  
• PAN
  

Then click ‘Submit’ to know the allotment status.

3. Check on BSE Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to the BSE website and find the ‘Investors’ tab. Under ‘Investors’, click on ‘IPO’. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:

• Select ‘Equity’ from the dropdown menu
  
• Choose ‘German Green Steel and Power’ in the next dropdown
  
• Enter your application number
  
• Enter your PAN
  
• Click ‘Search’ to know allotment status
  

How to Apply for the German Green Steel and Power IPO?

To apply for this IPO:

• Log in to your Kotak Neo Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  
• Specify IPO details: Enter the number of lots and the price you wish to apply for.
  
• Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Mandate Notification: Your UPI app will receive a mandate notification to block funds.
  
• Approve Request: Your funds will be blocked once you approve the mandate request on your UPI.