Gujarat-based German Green Steel and Power files DRHP with Sebi for Rs 450 crore IPO

Time of India

5 days ago

Gujarat-based
German Green Steel
and Power Limited has filed its draft red herring prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (
SEBI
) to raise Rs 450 crore through an initial public offering (
IPO
).
The IPO, with a face value of Rs 10 each, is a mix of fresh issue of up to Rs 450 crore with an offer for sale up to 10,00,000 equity shares by Inamulhaq Shamsulhaq Iraki and 10,00,000 equity shares by Abdulhaq Shamsulhaq Iraki.
The proceeds from its fresh issuance to the extent of Rs 325.21 crore for funding the capital expenditure requirements of the company towards expansion of its manufacturing facility at Samakhiali, Kutch,
Gujarat
and hybrid wind and solar power plant; Rs 55.01 crore for prepayment or repayment, in full or part, of certain outstanding borrowings availed by the Company; general corporate purposes.
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The company, in consultation with the book-running lead managers, may consider a pre-IPO placement. The pre-IPO placement, if undertaken, shall not exceed 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.
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Systematix Corporate Services Limited
, and
Emkay Global Financial Services Limited
are the sole book-running lead managers and Bigshare Services Private Limited is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.
The issue is being made through the book-building process, wherein not more than 50% of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% and 35% to non-institutional bidders, and retail individual bidders respectively.
German Green Steel and Power Limited is a vertically integrated iron and steel manufacturer primarily operating in the western region of India, with a strong presence in Gujarat with a main focus on TMX Bars, according to a CARE report mentioned in the DRHP.
The company's product portfolio comprises mainly TMT Bars, MS Billets and Sponge Iron. Its TMT bar manufacturing capabilities range from 8 mm to 40 mm. It believes that it has developed 'German TMT' as a popular brand for
TMT Bars
in the state of Gujarat.
It has two (2) manufacturing facilities located in the state of Gujarat ('Manufacturing Facilities'), one at Samakhiali, and the other at Viramgam, operated through its Material Subsidiary- German TMX Private Limited.
As of December 31, 2024, approximately 67.72% of its energy requirements are met by its captive power plant and
renewable energy
plant. It intends to further reduce its reliance on the electricity grid by constructing an additional hybrid wind solar plant.
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German Green Steel and Power's revenue from operations grew at a CAGR of 12.53% from Rs 892.25 crore in Fiscal 2022 to Rs 1,129.78 crore in Fiscal 2024. EBITDA grew at a CAGR of 43.04% from Rs 39.15 crore in Fiscal 2022 to Rs 80.11 crore in Fiscal 2024 with EBITDA Margin improved from 4.39% in Fiscal 2022 to 7.09% in Fiscal 2024 showcasing strong operating performance. Profit After Tax grew at a CAGR of 10.43 % from Rs 34.16 crore in Fiscal 2022 to Rs 41.67 crore in Fiscal 2024.
For the nine-month period ended December 31, 2024, revenue from operations, EBITDA and profit after tax stood at Rs 979.79 crore, Rs 68.18 crore and Rs 32.07 crore respectively.