German Green Steel and Power (GGSPL) is an iron and steel manufacturer primarily operating in the western region of India, with a strong presence in Gujarat and a focus on TMT bars. Its product portfolio comprises mainly of TMT bars, MS billets and sponge Iron.

GGSPL has two manufacturing facilities located in Gujarat, with the one located at Samakhiyali is vertically integrated and the other located at Viramgam operated through its subsidiary- German TMT Private Limited. Its TMT bar manufacturing capabilities range from eight mm to 40 mm

The company is predominantly conducting its business on a business-to-business (B2B) basis with three major types of customers, namely distributors, dealers and institutional customers. As on March 31,2026, the company had 12 distributors, 148 dealers and 343 direct institutional customers.

The brand `German TMT’ has established strong recognition for TMT bars in Gujarat.

Object of the offer

The IPO comprises fresh issue of up to Rs 290 crore and an offer for sale (OFS) of shares worth Rs 13.90 crore at the upper price band of Rs 139 per equity share.

Under the OFS, selling shareholders include InamulhaqShamsulhaq Iraki and Abdulhaq Shamsulhaq Iraki(both promoter group).

The funds of Rs 226.33 crore raised will be used for funding the capital expenditure requirements of the company towards expansion of its manufacturing facility at Samakhiyali and setting up of hybrid wind and solar power plant. The company intends to expand the existing installed sponge iron production capacity at the Samakhiyali facility from 66,000 tpa to 1,48,500 tpa, MS billets manufacturing capacity from 2,14,500 tpa to 4,12,500 tpa and existing installed TMT bars production capacity at the Samakhiyali facility from 181,500 tpa to 346,500 tpa. Capacity utilization for sponge iron stood at 95.2%, for MS billets stood at 79.4% and TMT bars stood at 87.8% in FY2026.

The company also intends to add an additional 3.6 MW (DC) solar plant and 5.4 MW wind power projects at Bharuch, Gujarat and is expected to be commissioned by December 31, 2026. GGSPL also intends to set up a 2.5 MW (DC) solar plant and 2 WTG of 2.7 MW each wind power projects at Gujarat to reduce its dependency on state electricity board.

Rs 7.70 crore will be used for prepayment of certain loans and the balance funds will be utilised for general corporate purposes.

Strengths

The company has vertically integrated manufacturing model across two Gujarat facilities, with backward integration into sponge iron and billet production supporting the company‘s TMT bar business.

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An established regional presence in Gujarat, a key western India industrial and steel manufacturing hub.

The company is led by a qualified and dedicated management team under the guidance of its Board of Directors. The company’s promoters and directors, InamulhaqShamsulhaq Iraki, Abdulhaq Shamsulhaq Iraki and Ibrarulhaq Inamulhaq Iraki have more than 30 years of experience in iron and steel industry.

Weaknesses

The company derived 50.6% of its total revenue from top 10 customers and the largest customer contributed 10.7% of the total revenue as such the company faces customer concentration risk.

Raw material cost constituted more than 75% of the total revenues as such margins are susceptible to fluctuation in raw material prices.

The manufacturing facility is in Gujarat and, therefore, its operation is highly vulnerable to regional conditions and economic downturns in the region.

The operations of the company are working capital intensive with high inventory and receivable days.

GSSPL operates in a highly competitive and fragmented TMT bars industry characterised by the presence of numerous organised and unorganised players, given the low technical expertise requirement and value addition in manufacturing of TMT bars. Due to intense competition in the industry, the bargaining power of the company remains low.

Demand for steel comes from sectors such as real estate, construction and infrastructure, which are linked to economic cycles. Any slowdown in economic activity, decline in investments in infrastructure or disruption in the region will significantly impact the scale of operations

Contingent liabilities stood at Rs 168.0 crore as on March 31,2026.

Valuation

Consolidated sales were up by 11.4% to Rs 1678.98crore in FY2026. Operating profit margin (OPM) expanded from 7.75% to 9.94%, leading to a 42.9% increase in operating profit to Rs 166.96 crore. Other income declined 33.6% to Rs 6.4 crore. Interest cost inclined 31.5% to Rs 42.96 crore and depreciation cost inclined by 39.8% to Rs 20.59 crore. PBT was higher by 49.1% to Rs 109.81 crore as against Rs 73.65 crore in FY2025. PAT rose 33.3% to Rs 79.89 crore as against Rs 59.94 crore in FY2025. Tax expenses were Rs 29.92 crore in FY2026 as against Rs 13.71 crore in FY2025.

At the higher price band of Rs 139, the offer is made at a P/E of 13.11 times FY2026 EPS (of Rs 10.6).

Listed peers are Kamdhenu, Beekay Steel Industries, MSP Steel & Power and VMS TMT. Kamdhenu trades at 13.5 times TTM P/E, Beekay Steel Industries trades at 18.4 times TTM P/E, MSP Steel & Power trades at 13.8 times TTM P/E and VMS TMT trades at 13.9 times TTM P/E. The OPM and ROE stood at 9.94% and 18.86%, respectively, in FY26. These were 17.0% and 22.1% for Kamdhenu, 8.0% and 1.4% for Beekay Steel Industries, 6.0% and 13.7% for MSP Steel & Power, and 8.0% and 14.0% for VMS TMT, respectively.